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Author: NoelDeMartin

content/collections/posts/10-years-as-a-software-developer.md

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+---
+id: blockchains-how-do-they-work
+blueprint: post
+title: 'Blockchains: How do they work?'
+publication_date: '2018-08-13 04:00:00'
+modification_date: '2021-01-16 09:05:34'
+---
+
+[![Blockchains: How do they work?](/img/blog/Blockchains-1.jpg)](https://unsplash.com/photos/_QoAuZGAoPY 'Cityscape and interchange photo by Denys Nevozhai on Unsplash.com')
+
+The word is out about blockchains and how awesome they are. Or how awful, depending who you ask. I have been spectating the discussion for years, but I recently decided to give it a real look.
+
+In this article I will introduce the foundations on how does blockchain technology work.
+
+## Sources
+
+In order to cover a good amount of diversity, I chose three blockchains to look into: Bitcoin, Ethereum and Steem. I think those are representative enough to get started, but if you think I missed any game changer, let me know!
+
+With so much controversy it is difficult to find impartial learning sources. I decided to start by reading the original whitepapers and search specific information based on that. They can be found on the following links:
+
+- [Bitcoin: A Peer-to-Peer Electronic Cash System](https://bitcoin.org/bitcoin.pdf 'Bitcoin original whitepaper')
+- [Ethereum: A Next-Generation Smart Contract and Decentralized Application Platform](https://ethereum.org/en/whitepaper/ 'Ethereum original whitepaper')
+- [Steem: An Incetivized, Blockchain-based, Public Content Platform](https://steem.io/SteemWhitePaper.pdf 'Steem original whitepaper')
+
+---
+
+The key concept to understand is that blockchains are made to store information, that’s why sometimes you see them described as some kind of database. A blockchain is nothing more than a collection of records storing data. These records are called “blocks”. They have an intrinsic chronological order, because they store information about previous blocks. Together they are called "the blockchain".
+
+The easiest way to understand the underlying nature of blockchains is to think of them as [Linked Lists](https://en.wikipedia.org/wiki/Linked_list).
+
+Other than the basic architecture, there are some key properties which make blockchain technology unique: distribution, encryption and immutability.
+
+## Distribution
+
+This is probably the most important property of blockchains and what makes them extremely resilient.
+
+It is possible to clone a blockchain, and such clone will be the same as the original. Computers running those clones are called “nodes”. And it doesn’t matter if the original blockchain is lost, as long as there is at least one active node, the system won’t be disrupted. All nodes together make the “blockchain network”.
+
+Given that there isn't one true blockchain, you may be wondering how is the system protected from malicious nodes. This is solved using a [consensus algorithm](https://en.wikipedia.org/wiki/Consensus_%28computer_science%29), where a malicious node would need to control more than 50% of the network to manipulate records. It makes a blockchain more secure the bigger it grows.
+
+## Encryption
+
+Since anyone can join the network, it is necessary to validate information without trusting other nodes. And that is achieved with encryption. All the information in the blockchain is cryptographically tied together. In order to modify even one byte in a block, all subsequent blocks would need to be modified as well.
+
+One interesting side-effect of this is how ownership works. In blockchain there aren’t any owners or “users”. Think about a traditional application, where a user is authenticated with a password. Because those applications are controlled by one entity, if the password is lost they can perform recovery operations and create a new password. But in blockchain the only thing that represents a “user” is the possession of the password, in this case a [private key](https://en.wikipedia.org/wiki/Public-key_cryptography). If the password is lost or stolen, it cannot be recovered.
+
+That's why it isn't so much who owns anything, but what you can or cannot decrypt the data.
+
+## Immutablity
+
+As a consequence of distribution and encryption, blockchains are immutable. This doesn’t mean that the final application using the blockchain is immutable. Applications built on top of blockchains have a derived state, which can be inferred from traversing the entire chain. What this means is that anything from the derived state can be changed, but the history of modifications will always be recorded.
+
+---
+
+Having all this into account, it’s important to keep in mind something that isn’t immediately obvious. Operations performed on a blockchain can be really slow and resource-consuming.
+
+The problem is not the operation itself. In order to trust an operation as valid, it should be spread through the network until it is considered secure. For example, in the Bitcoin blockchain it can take as long as [one hour](https://en.bitcoin.it/wiki/Confirmation) to have a confirmed transaction. And Ethereum nodes have to do a lot of [extra work](https://ethereum.stackexchange.com/questions/357/does-every-node-execute-the-contract-code-for-each-transaction) just to maintain security. Other blockchains have different timeframes and limitations, but this goes to show how unexpected consequences can arise from not knowing the specifics of a technology.
+
+Blockchain is becoming a buzz word these days, and a lot of scams are disguising themselves with the cloak of this technology. Not to mention the amount of people who [have no idea](https://www.theguardian.com/technology/2017/nov/08/cryptocurrency-300m-dollars-stolen-bug-ether) about what they are doing. So be careful and get informed before getting involved in any blockchain endeavor.
+
+**Part II:** [Blockchains: Innovation or Sham?](https://noeldemartin.com/blog/blockchains-innovation-or-sham-)

content/collections/posts/blockchains-how-do-they-work.md

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+---
+id: blockchains-innovation-or-sham
+blueprint: post
+title: 'Blockchains: Innovation or Sham?'
+publication_date: '2018-08-20 04:00:00'
+modification_date: '2018-08-20 22:17:41'
+---
+
+With so much happening with blockchains, there is an ongoing discussion on the impact they have. In order to form my own opinion, I have studied three and I will give my take of them and the ecosystem. If you are not familiar with blockchain technology, make sure to read [my previous article](https://noeldemartin.com/blog/blockchains-how-do-they-work-) where I introduce the foundations and explain what makes it different from other technologies.
+
+## Bitcoin
+
+This is probably the most famous blockchain, and it is sometimes confused with blockchain technology overall.
+
+Its main purpose is to process payments, and that's why it's called a cryptocurrency. The original intention was to provide secure and cheap online transactions, without the hurdles of trusting third parties to mediate. However, it has since evolved in different directions. Although the technology is the same, people have been using it for other purposes. Some of them are:
+
+- **Replacing physical currencies**: Most ambitious proponents of Bitcoin argue that it's the future and it will eventually replace physical currencies.
+
+- **Speculation**: One of the main trends is to buy Bitcoin with the expectation of making a profit. Or manipulating public opinion in order to benefit from price fluctuations.
+
+- **Anonymous transactions**: Since there is no real ownership in Bitcoin other than holding a private key, transactions can be anonymous. And this makes it a real benefit for some.
+
+- **Smart contracts**: The fact that the system is secure and immutable has prompted some actors to use it as witness that an agreement was made.
+
+- **Others**: Using transaction metadata, other applications have been built on top of the Bitcoin network for multiple purposes.
+
+Most of those are not unique to Bitcoin and can be seen in other cryptocurrencies as well.
+
+My opinion of the current state of Bitcoin is not great. The key problem I see is precisely what makes it special: it has no regulations. Some people are of the opinion that that's good. But I believe having bad regulations is generally better than no regulations. I'm not saying that today's laws are perfect, but hundreds of years ago things like slavery were common-place. And I'm sure that having no regulations brings the worst in humanity. I don't think that people is inherently bad, on the contrary, I believe most people wants to do good. But without rules, a few bad actors can have a huge impact and influence the entire ecosystem.
+
+The reality is that today most successful use cases for Bitcoin are speculation and illegal activity. Unfortunately, the use cases that I find more beneficial are less viable every day or don't compensate for all the problems that are created in exchange (volatility, scalability, environmental impact, etc.). And without regulations, I don't see how this will ever change.
+
+An alternative blockchain called [Bitcoin Cash](https://www.bitcoincash.org) was created to fix some of those issues, but I am sceptic for what I just mentioned. In any case, I haven't looked much into it, so I cannot have a definite opinion.
+
+## Ethereum
+
+I mentioned that Bitcoin has been used to develop other applications on top of the network. But it has some limitations because it wasn't designed with that purpose in mind. That's where Ethereum comes in. It supports a programming language that is run using their built-in cryptocurrency.
+
+Since it has been built with a broader scope, it covers more use cases than Bitcoin, and multiple blockchains have been built entirely on top of the Ethereum blockchain. However, since I don't know much about its use in the wild I will refrain from talking about this. What I do know is how it works after reading the white paper and digging a couple of concepts. And my initial opinion is not great.
+
+Applications built with Ethereum are executed in every node of the network, which results in a lot of wasted computation. I can understand how this is necessary for security reasons, but I'm not sure that many applications justify this trade-off.
+
+In order to run code on the blockchain it's necessary to spend Ether, their built-in cryptocurrency. The problem is that the price of Ether is not stable. For someone who is not part of the network, operations may be too expensive and unreliable.
+
+All in all, I think the approach is better than Bitcoin, but in the end it suffers from the same core problems. And I struggle to find a use case that could not be solved with other technologies.
+
+## Steem
+
+The last blockchain I want to talk about is Steem. This one does a couple of things differently and its main purpose is to provide a distributed content and blogging platform.
+
+Everything works around a cryptocurrency called Steem. This currency can be earned by using the platform, for example writing posts, comments or upvoting. And it has two derivations: Steem Power (SP) and Steem Dollars (SBD). Steem Power is used to potentiate your activity. The more SP you have, the more impact your activity will have and more Steem you'll get. Steem Dollars, on the other hand, are used as a way to have stability within the system. One SBD can be exchanged for the equivalent of one USD in Steem at the current evaluation.
+
+The founders of this blockchain also created a platform called [Steemit](https://steemit.com), where it's easy for anyone to create an account and start interacting with the blockchain in a seamless way. In fact, you won't notice that you're using blockchain technology, since it behaves like any other media platform. The one thing that will stand out is that posts and comments have an amount of dollars next to them. This amount is how much Steem has been generated for the author of the content, represented in Steem Dollars.
+
+I have to say that Steem is the first blockchain I like. The main thing that got me interested is providing a viable alternative to fund content creators. In contrast with the advertisement model, which I am heavily against. If you want to learn more about this from a content creator's point of view, read this post by David Kadavy which covers the basics: [A writer’s guide to making money on the STEEM blockchain – for beginners](https://steemit.com/steem/@kadavy/a-writer-s-guide-to-making-money-on-the-steem-blockchain-for-beginners).
+
+[Having used the platform](https://steemit.com/@noeldemartin) for a while has been a good experience so far. I am worried about a couple of things like bot activity, but nothing dramatic yet. The fact that Steemit is a layer on top of the blockchain can help fixing some of these issues. It may seem counter intuitive to say that, given the main point of blockchains to be distributed. But if Steemit goes sideways, the underlying blockchain with all the information is still open. And it's possible for anyone to create alternative platforms.
+
+Some alternatives to Steemit already exist, like [Busy.org](https://busy.org). And a decentralized alternative to YouTube called [D.tube](https://d.tube) has been built on top of the Steem blockchain. But keep in mind that videos are stored on [IPFS](https://ipfs.io), not the blockchain, so the same rules won't apply.
+
+## Final veredict: awesome or awful?
+
+With all this said, what is my final opinion on blockchains?
+
+First let me point out that technology is a multiplier. If you want to do good, technology will help you. But it will also potentiate bad intentions. That's why I believe the real question here is how are blockchains being used today.
+
+Unfortunately, I don't like the current state they are at. I've found a lot of arguments for and against, and the ones with more impact are the ones against. Seems like most prominent scenarios are speculating and introducing ill-informed hype. And the solutions to existing problems are mostly based on hope and hypothesis, but the current situation does not seem to be changing.
+
+It is also possible that Bitcoin and sketchy blockchains take much of the spotlight, and smaller blockchains are not taken into account. But as I said, the important part about technology is how it's being used, so it isn't inherently wrong to judge based on that.
+
+I agree with most of the principles, but not the execution. I believe it's possible to fix the problems. In particular I think the keys are improving efficiency and introducing self-regulation mechanisms. This is already happening with some blockchains, but it will not happen for the entire ecosystem in the short term.
+
+That's why I think it is important for us to be aware of what kind of blockchain we are supporting. Next time you see a new fancy blockchain being announced, make an effort to learn what's actually going on under the hood.

content/collections/posts/blockchains-innovation-or-sham.md

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+---
+id: call-for-mentor-mastermind
+blueprint: post
+title: 'Call for Mentor / Mastermind'
+publication_date: '2015-01-30 14:21:19'
+modification_date: '2015-01-30 14:21:19'
+---
+
+Some time has passed since [I started working on my own](/posts/starting-something-new). One of the ideas I value the most is the power of feedback, experience and different points of view.
+
+That's why I am starting a search for a [Mentor](http://en.wikipedia.org/wiki/Mentorship) or starting a [Mastermind Group](http://lifehacker.com/go-beyond-simple-networking-and-organize-your-own-mast-824329576) as one of my 2015 New Year Resolutions.
+
+## Presenting myself
+
+About me, I introduced some of myself in the [first post](/posts/starting-something-new) of this blog. If I had to say which is my main occupation, it would without a doubt be a software developer, which is what I have done all of my professional life. Most of my experience is based on Web development (backend & frontend) and Mobile development (Android). But I really think about myself as platform agnostic, with Artificial Intelligence as an area that passionates me but I haven't got into intensely. All this can be inspected further in my [LinkedIn profile](http://www.linkedin.com/pub/noel-de-martin-fernandez/41/a7b/64).
+
+Technical matters are well inside my comfort zone, but I also enjoy Design and Business topics. Although I have to say in practice I turn to focus too much on the product, that's one of my flaws. I read and follow experts in different roles in order to keep my vision broad. And I enjoy trading ideas and reflect upon subjects.
+
+## What am I looking for?
+
+Now, why am I doing this? I have read multiple times about the benefits of having peers to whom I could explain my doubts and intentions in order to get feedback. I think now it would be a good time to start doing this in a more structured way. I am looking for either a Mentor or a Mastermind Group, because any of those fulfill my requirement of having some regular review of my goals and progress, and would bring a greatly appreciated external point of view to all this.
+
+The profile I am most interested in is certainly not technical. It can be, but where I would get more insight is definitely on the personal management and business areas.
+
+In case someone is reading this and wondering what a Mastermind Group is (I assume everybody knows what a Mentor is); as I understand it, a Mastermind is a group of like-minded individuals who have meetings at regular intervals in order to discuss some matters of interest, with the final goal of helping each other and grow together. The perfect scenario is having people with different backgrounds in order to have a significant pool of experience and knowledge to leverage. Of course, in case of a Mastermind I could fulfill a role of strong technical knowledge. A full description of what it is can be read in [this post](http://lifehacker.com/go-beyond-simple-networking-and-organize-your-own-mast-824329576).
+
+My intentions are to meet approximately twice a month (every two weeks). I always prefer to have interactions in person, but I would like to have feedback from someone with a different perspective to mine (and I am not sure this idea of mentorship/mastermind is practiced in Spain). So I am not against having peers from far away, we'd use video chat and/or email.
+
+If you are interested or know anyone who could be, please let me know at [[email protected]](mailto:[email protected]).