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Also, should the customer wish to engage with a different bank, the process gets repeated. One solution is to have a central entity do the KYC process on behalf of the entire industry. A central database provides universal accessibility and lower cost of client acquisition. However, having a single source of information makes it more vulnerable to hacking attacks. This is where the distributed ledger technology becomes a game changer. Documents necessary for KYC often includes Driving license, Passport, utility bill etc.\n\nThen we have scalability, a network protocol is said to be scalable if it is suitably efficient and practical when applied to large situations, for example, a large input data set; a large number of outputs or user; in the case of a distributed system, a large number of participating nodes. If a system or design fails when a quantity increases, it does not scale.\nAlso, scalability is defined by B. 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In an event where an individual in a group has his identity stolen or lost his/ her phone, this can be easily revoked as soon as it is reported to the group head, and a new one can be re-issued via a recovery key.\n\nThe best-proposed solution again was a community-based manager, whereby if some member of a group did something wrong, the group could vote to reveal the person’s identity.\nPavel further mentioned data mining, which makes it possible to analyze transaction patterns, hence leading to an understanding of the individuals or entity behind the transactions. Cryptocurrencies are no different from credit card information, considering that the blockchain (database) is public. With whitelisted addresses, at some point anonymity will be zero.\n\n# Why Scalability and KYC (Know your customer) are so hard to solve?\n\nThe first generation cryptocurrency “Bitcoin” was about building a decentralized money, i.e. sending the value to people that is actually worth something. The second generation “Ethereum” looked at the transactions having stories, which came in the form of smart contracts. Both first and second generation blockchain systems faced a challenge of scalability because of the way their architecture. This makes it difficult to make a change or upgrade without it leading to a hard fork, i.e. a complete divergence of the network.\n\nKnow your customer (KYC) is equally challenging because these systems were also designed as completely anonymous. This anonymity makes it very attractive to a lot of users who believe in having control over their identity and privacy. Making any form of changes to this is hard without it leading to a hard fork of the network.\n\n# Which crypto blockchain might be able to solve the problem: Cardano, Ethereum, Neo, Qtum, or Civic? \n\nFrom a research of the above-listed blockchain/cryptocurrency solution, no single one proffers a perfect solution to both scalability and KYC challenges. 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      "body": "# KNOW YOUR CUSTOMER (KYC) AND SCALABILITY CHALLENGES FACED BY BLOCKCHAIN DEVELOPERS\n\n![The-challenges-of-scaling-microservices.jpg](https://steemitimages.com/DQmUBL2gZBi8pQNy1qm8j4xe5M7ctcVwsmJRPpbNPp4vET2/The-challenges-of-scaling-microservices.jpg)\n\n# Introduction\n\nTwo of the biggest challenges blockchain developers faces are Scalability and KYC (Know your customer). \nIn security-sensitive businesses, there is a need to have a means of knowing who your customers are. The “know your customer” process better known as KYC helps institutions verify the identity of their clients. KYC is a regulatory and legal requirement that has to be fulfilled by the banks for both new and existing clients. Typical KYC includes acquiring personal information, related proofs, background checks, ongoing changes and store client details. Current systems require each institution do their own KYC which translates to a higher cost of customer acquisition for the banks. 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      "title": "Proof-of-Work vs. Proof-of-Stake in Blockchain: Bitcoin vs. Qtum",
      "body": "# INTRODUCTION\nThe innovation of the blockchain is really a process to figure out how to update a ledger that is shared on decentralized servers with a new block of transactions, hence reaching a consensus. \n\nThe idea of proof-of-work and proof-of-stake, are both ways through which consensus is reached in a decentralized or distributed system. This consensus or agreement on what is true or false between nodes on a blockchain is what makes blockchain based cryptocurrencies work. \n\n![DigitalBrain-20150812091648187.jpg](https://steemitimages.com/DQmToLb4UJ6RJGMQBqbR21LsuWKB9m8c7rZsXg7u1Q9vPNC/DigitalBrain-20150812091648187.jpg)\n\n# BITCOIN: PROOF-OF-WORK\nProof-of-work consensus algorithm is a means by which someone can prove to others on a distributed network that they have carried out a significant amount of computational effort.  It allows a participant on the blockchain display a forge proof number which can be used to determine how many Joules of electricity that was consumed to create that number. That number is in itself an artifact, a monument of immutability, a proof that you have done the work. Imagine the possibility of presenting a number to a system that has never seen the history of the blockchain, and the node knows the amount of work it took to generate that number. Bitcoin is a monument of immutability, built block by block that cannot be changed or forged without the other person knowing that it has been changed, and without expending the same amount of work/energy it took to create it.\n\n•\tMining in Bitcoin\nIn Bitcoin, consensus is reached through a process called mining. This is carried out by special nodes on the blockchain known as miners, who earn the right to validate and add the next block of transactions by solving an energy intensive cryptographic puzzle, hence “Proof-of-work”. This puzzle is difficult to compute but easy to verify. Similar to the lottery, the more tickets you buy the greater your chance of winning, the more processing power each computer puts in the greater their chance of winning. \n\n![tx.png](https://steemitimages.com/DQmcdJs3F89QZkNNXvKXL3c3UAgzDvkfmhnsKfJeWJgErAK/tx.png)\n\nThe correctly generated hash is added into the next field as previous hash, putting the blocks in a chain.\n\n# Qtum: Proof-of-Stake\nThe Quantum blockchain (Qtum) as stated in their white paper “is a combination of Bitcoin Core, Proof-of-Stake, and the Ethereum Virtual Machine (EVM)”.  Its Qtum Core allows for the execution of Smart contracts on a proof-of-stake model. The major difference between proof-of-stake and proof-of-work is that proof-of-stake mainly uses the underlying native assets to stake into the consensus algorithm. \n\nA participant stakes a particular amount of his currency in validating a block, with the risk of losing the staked asset (money) if he fails. On the other hand if the validation process is correct, a small fee is gained. \n\nIn the proof-of-stake consensus algorithm, block validators are selected based on a simulated combination of random selection. Here the group or entity with the highest stake has a higher probability of winning. This consensus algorithm unlike proof-of-work does not come with the creation of new currencies/tokens. Only transaction fees are gained.\n\n•\tHASH FUNCTIONS, MERKLE TREE, AND MINING\nThe idea “Proof-of-work” is linked to other blockchain concepts such as hash functions, Merkle tree, and mining. A brief introduction into these concepts will shed more light into better understanding of the concept.\nThe Bitcoin ledger is based on a Merkle tree data structure that is continuously growing. Its inner workings are built upon what is known as a cryptographic hash. \n\nA hash is a one way function that has multiple uses in blockchain and distributed/decentralized systems. It takes any digital media and runs an algorithm on it to produce a unique fixed length digital output known as a hash. This is normally much smaller than the original input. The hash function can equally be likened to a Smoothie Machine. The fruits or veggies are the digital media. Once they are blended together, we cannot get back the digital media. However the taste of the output smoothie is its digital signature. \n\n•\tA SIMPLE EXAMPLE OF HASHING BITCOIN TRANSACTIONS\nHashes in combination of peers produce what is called a Merkle tree, which is an essential part of a blockchain for data integrity.\n\nProof-of-work in Bitcoin requires guessing a number known as a [Nonce] which can generate a hash (Alphanumeric character) that begins with four Zeros (0000). The [Mine] button in the figure below runs a function on the following: Block Number, Nonce, Transactions, and Previous Hash, to create the valid new hash. If the generated hash does not begin with four zeros, then it means that the transactions have been altered, or the nonce is incorrect. This in security means tamper evidence. The guessed Nonce is now the proof that the particular block of transactions has been solved.\n\n# Here is how it works under the hood:\n•\tFirst step is to add a coinbase transaction, along with a mostly hard coded staking transaction.\n•\tSecond is the process of preparing blocks which includes transactions from the network.\n•\tThe third step is to compute a Proof-of-Stake (PoS) “kernel”.\n•\tForth is a computation of “Staking difficulty”\n•\tA comparison of the kernel’s hash against the staking difficulty\n•\tContinue to a valid Proof-of-stake block if the hash meets the difficulty, else go back to step 1 \n•\tFinally, the block header is signed as a confirmation that you own the staking transaction.\n\nThe Proof-of-stake kernel is a very significant part of the solution, in the sense that its content cannot be easily changed in the block. Another important feature is the staking difficulty, which is taken from Bitcoins’ standard difficulty. If a single coin is staked the standard difficulty is maintained, however staking 2, or 4 coins imply that the difficulty will be halved or quarter respectively. Some restriction mechanisms are put in place for ensuring that the network is not being controlled by a single entity. This is done by putting a limit to the amount of staking coins, consequently a benchmark which the difficulty can be reduced.\n\n# CONCLUSION \nIn conclusion, proof-of-work and proof-of-stake algorithms can both coexist. This is because there would be applications that would require a more robust level of immutability, while another may not require that amount of immutability.",
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      "title": "",
      "body": "In my last installation I had error with the passphrase step. So I format the SD card and re-burn Raspbian and did the above steps again. It worked some how. GL",
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      "title": "",
      "body": "I have exactly the same issue now. Did you manage to make it work? :)",
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      "permlink": "re-cryptominder-qtum-staking-tutorial-using-qtumd-on-a-raspberry-pi-3-20171013t032229377z",
      "title": "",
      "body": "@@ -68,116 +68,21 @@\n wed \n-the\n+your\n  steps \n-here. https://steemit.com/qtum/@cryptominder/qtum-staking-tutorial-using-qtumd-on-a-raspberry-pi-3\n+. \n %0A%0AGo\n",
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      "permlink": "re-cryptominder-qtum-staking-tutorial-using-qtumd-on-a-raspberry-pi-3-20171013t032229377z",
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      "body": "I'm having an issue with transferring Qtum into the Wallet, I followed the steps here. https://steemit.com/qtum/@cryptominder/qtum-staking-tutorial-using-qtumd-on-a-raspberry-pi-3\n\nGot everything running - On Step 10 - Encrypting and Unlocking Your Wallet. $ ~/qtum-wallet/bin/qtum-cli -stdin encryptwallet\n\nI can see \"unlocked_until\": 0, and I set that to 99999999\n\nI created a new account with $ ~/qtum-wallet/bin/qtum-cli getaccountaddress \"accountname\"\nAccount info show default account \"\" and \"accountname\"\n\nDoes \"getaccountaddress\" create a new account and key? I assume It does because it shows up on listaccounts.\n\nI transferred 1 Qtum from Binance to \"accountname\" public key. Binance confirm transfer completed.\n\nBut when I check with $ ~/qtum-wallet/bin/qtum-cli getwalletinfo\nMy balance is 0.0000000\n\nWhat might I have missed or done wrong?\n\nDo I need to select which account to get info on?\n\nIf so how I select the account I want to display the info?\n\nThanks in advance.",
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      "body": "Congratulations @sacen! You have completed some achievement on Steemit and have been rewarded with new badge(s) :\n\n[![](https://steemitimages.com/70x80/http://steemitboard.com/notifications/voted.png)](http://steemitboard.com/@sacen) Award for the number of upvotes received\n\nClick on any badge to view your own Board of Honor on SteemitBoard.\nFor more information about SteemitBoard, click [here](https://steemit.com/@steemitboard)\n\nIf you no longer want to receive notifications, reply to this comment with the word `STOP`\n\n> By upvoting this notification, you can help all Steemit users. Learn how [here](https://steemit.com/steemitboard/@steemitboard/http-i-cubeupload-com-7ciqeo-png)!",
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      "body": "@@ -1,8 +1,128 @@\n+* Do not make investment decisions based on this article. All contents are personal opinion and not financial advice. %0A%0A\n !%5Blogo.p\n",
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      "body": "@@ -1,8 +1,128 @@\n+* Do not make investment decisions based on this article. All contents are personal opinion and not financial advice. %0A%0A\n # ABOUT \n",
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