If Bitcoin was a country, it would consume more energy than Ecuador.

23

October

2017

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Since the latest increase in Bitcoin’s value, reaching its all-time high of 6100 USD, much has been published about this digital currency. Speculations about its future value, strategies on how to make the most profit and so on.

Bitcoin and other blockchain currencies are based on sets of transaction (blocks) on top of each other by so called “miners”. These miners aren’t required to trust each. All they need to do is trust the algorithm that runs the Bitcoin. As long as all the miners agree on what is the exact history of such building blocks, the block can continue to be build (continuing with transactions) (proof-of-work).  For this, many calculations and predication have to be made.  Because there are only a limited amount of Bitcoins available, the more bitcoins are bought, the more scare they become, and thus the more valuable. Currently, there are only 195.12 bitcoins available (Litebit.eu). If you would have bought a Bitcoin one year ago, you would have paid 600 USD for it, and you could get 6100 USD for it now.

This sounds like you can make money while sleeping, however, the machines that run all the calculations necessary to build the blocks on top of each other, use an enormous amount of energy.
As can be seen in the chart below, Bitcoin uses around 23 TWh per year, which is just a little more than the entire country of Ecuador.

For comparison, Bitcoin uses about 20% of the entire energy consumption in The Netherlands.

Besides a gold-mine, Bitcoin is basically a very volatile a payment system. When compared with other payments systems like VISA, Bitcoin uses much more energy too.

 

Bitcoin's energy consumption compared to VISA

The question is whether this is what it’s worth to have a payment system based solely on trusting an algorithm, as VISA requires banking and similar institutions.

The answer is, no. Although the way Bitcoin works (through Proof-of-work) was the first algorithm that manages to prove itself, there are more algorithms that work in a different way and use much less energy, like proof-of-stake.

However, there are many different versions of proof-of-stake, and none of these have fully proven themselves yet. Nevertheless, this gives good hope for the future and sustainability of blockchain currencies.

 

References

Bitcoin Energy Consumption Index – Digiconomist. (2017). Digiconomist. Retrieved 23 October 2017, from https://digiconomist.net/bitcoin-energy-consumption

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Ever stared at an advertisement? Soon it will stare back

13

October

2017

5/5 (1)

If you have been at NS railway stations recently, you have most likely looked at advertisements. However, recently a traveller found a camera in one of the advertisements. As it turns out, the are over 30 of such advertising pillars on NS railway stations alone (Sondermeijer, 2017) (Koot, 2017). Although it is questionable whether this is ethical, this is only the top of the iceberg when it comes to the development in eye-tracking technology.
For a long time eye-tracking technologies enabled researchers, amongst others, to determine where we look at when for example visiting a website. As a result advertisements could be adjusted in such a way that they get our (un)conscious attention. Eye tracking technologies have also already been incorporated in smartphones, such as the Samsung Galaxy S4. Despite the mixed reviews, the tech companies believe this is a long-term trend and thus invested heavily in the technology (Tso, 2013).

As a consequence, it won’t be long before eye tracking will be a new major data source. For example, Yahoo applied for a patent for a “smart” billboard that can collect data through cameras, amongst other sensors, to detect how many people look at the advertisement and what their personal characteristics are (Liffreing, 2016).Also, billboards next to high ways could determine how many cars pass by and even determine the socioeconomic status of the drivers, based on their car model and age. Perhaps in a rural area the audience is different from that of in an urban area. This of course means that advertisements can be more specified towards the audience, resulting in more effective ads. A next step would be to track who looks at the advertisement, what they focus on and for how long. The more characteristics or information the advertisement can acquire, the more specified the advertisement can be.
So far eye tracking has not yet played a big role in the advertising industry, despite the current usage. Also, eye tracking alone does not add so much value. However, once eye tracking data, GPS and personal data is combined by for example Google, Google knows who looks at which advertisement. This would mean that Google can adjust its billboard content according to what sort of people are walking in front of the billboard at that moment, or adjust it according to their response. Combine this with the use microphones and artificial intelligence that translates conversations into data, and the advertising company will know what people think (Tso, 2013). Again, the advertisement can be adjusted accordingly.
Development of eye tracking technology and the combination of this with all the data firms like Google already have has a major impact on the advertising industry. Digital public advertisements can adjust its content according to who is in front of the advertisement and who looks at it. As a result the advertisement delivers more value to both the potential customer and the advertising company. Soon, the advertisements will stare back at you and perhaps even greet you: Hi [name], didn’t have a good day at work? Check out this comfortable chair!

 

Bibliography
Koot, J. (2017, September 9). Het reclamebord houdt u in de gaten. Financieel Dagblad.
Liffreing, I. (2016, october 14). Yahoo’s “smart” billboard takes outdoor data-collection to the next level. Campaign US.
Sondermeijer, V. (2017, september 4). NS-stations, Reclamezuilen filmen reizigers op. NRC handelsblad.
Tso, R. (2013, July 19). How Eye-tracking Technologies Will Change the Advertising Game. Huffington Post.

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