Overstock Begins Trading Its Shares Via the Bitcoin Blockchain (wired)
A New Exchange Byrne first revealed Overstock’s new blockchain stock offering in October at a fintech conference in Las Vegas, and over the past month, any existing Overstock shareholder could subscribe to take part. Today, the company actually moved the stock into investor accounts, including 126,565 shares traveling via tØ’s blockchain technology. Investors can begin trading the shares via the blockchain tomorrow. The Securities and Exchange Commission officially green-lit the operation last December, and Byrne says his company spent $5 to $6 million in legal fees securing regulatory approval from both the SEC and FINRA, the financial industry’s private overseer. tØ runs its own private blockchain, which would seem to defeat the purpose of the technology. The power of the blockchain lies in its distributed nature—as a technology that no one entity controls. But tØ publishes all transactions to the blockchain proper—the ledger that underpins bitcoin—which provides a very public record of anything that happens on its private system. Part of Byrne’s aim is to offer a transparency that today’s markets don’t provide.
Overstock Begins Trading Its Stock Via the Bitcoin Blockchain (wired)
This is an automatic summary, original reduced by 77%.
Online retailer Overstock.com has become the first publicly traded company to issue stock over the internet, distributing more than 126,000 company shares via technology based on the bitcoin blockchain. The online retailer and its free-thinking CEO, Patrick Byrne, view the blockchain as a way of significantly streamlining not only stock exchanges like the NASDAQ, but all sorts of other capital markets. To satisfy regulators, the company drove the blockchain shares through a broker and various other middleman that typically accompany a stock offering-yet another sign that this young technology is still a long way from overhauling Wall Street. Many others have joined a blockchain-focused consortium called R3. The company behind the NASDAQ has explored blockchain technology as a way of tracking the exchange of shares in private companies. The momentum isn't all in the same direction: Goldman Sachs and three other big-name players recently pulled out of R3. The move towards the blockchain has slowed after an initial frenzy, which was driven largely by a fear of "Disruption," says Rick Stinchfield, head of technology at Finadium, the financial consulting firm that closely follows the progress of blockchain technology on Wall Street. Today, the company actually moved the stock into investor accounts, including 126,565 shares traveling via tØ's blockchain technology.
Bitcoin vs. Credit Card Transactions: What's the Difference?
Bitcoin vs. Credit Card Transactions: An Overview
Most people have a credit card they can use to pay for things. But some also have bitcoin at their disposal. Which one should people use, and when, to maximize their assets?
Satoshi Nakamoto, the inventor of bitcoin, titled his original white paper on the subject "A Peer-to-Peer Electronic Cash System." This description touches on the core differences between bitcoin and credit card transactions. Bitcoin payments are analogous to wire transfers or cash transactions, where payment is "pushed" directly from one party to another, without going through another financial institution. Payment processing is executed through a private network of computers, and each transaction is recorded in a blockchain, which is public. Bitcoin is based on peer-to-peer technology and relies on the blockchain and the cryptography securing it, without any third-party oversight. When making a bitcoin transaction, it is not necessary to provide personal identification, such as your name and address.
Credit Card Transactions
By contrast, credit card transactions entail the buyer effectively authorizing the seller to "pull" a payment from their account, passing through financial intermediaries in the process. For example, a typical Visa transaction involves four parties: the merchant, the acquirer (the financial institution that enables payments to the merchant), the issuer (the cardholder's bank), and the individual cardholder.
Bitcoin transactions are made using an anonymous alphanumeric address, that changes with every transaction, and a private key. Payments can also be made on mobile devices by using quick response (QR) codes. While credits cards are stored physically in a wallet, bitcoin transactions are sent to and from electronic wallets, which can be stored on your computer, smartphone, or in the cloud. Bitcoin transactions are irreversible and can only be refunded by the receiving party—a key difference from credit card transactions that can be canceled. This means there are no charge-backs for merchants when taking payment via bitcoin. A charge-back is the demand by a credit-card provider for a retailer to cover the loss on a fraudulent or disputed transaction. Bitcoin merchants also save on credit card fees that can range anywhere from 0.5% to 5%, plus a 20 to 30 cent flat fee for each transaction made. Bitcoin payments can be sent and received at a very low cost or none at all, as bitcoin fees are based on the amount of data sent. For merchants, the advantages of receiving bitcoin are obvious. Payments made using the virtual currency save substantially on processing fees and eliminate the risk of charge-backs. For shoppers, the advantages of paying with bitcoin include greater simplicity in placing the transaction, user anonymity, no interruptions from intermediaries, and very low transaction fees. (For example, your account being frozen as a result of a fraud alert). Credit cards offer important beneficial features, such as the ability to borrow money, protection against fraud, reward points, and vastly wider acceptance among merchants. While a few major retailers, including Overstock.com (OSTK) and Newegg, have started to accept bitcoin, most have yet to make it a payment option. However, using credit cards carries the risk of incurring late fees, interest charges, foreign transaction fees, and potentially adverse effects on your credit score.
Der US-Onlinehändler Overstock erwägt, seine Unternehmensanteile künftig auch auf Basis von kryptografisch gesicherter P2P-Technik im Stile des Bitcoin auszugeben. It isn’t often we write about articles in Wired Magazine, but this one you have to read. Combine bitcoin, blockchain, the CEO of overstock.com, and securities lending and you get TØ.com.. We have been seeing a lot about bitcoin lately, but when you dig into it, the story is really about blockchain, the backbone underneath bitcoin. A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are... Bitcoin is a distributed, worldwide, decentralized digital money … Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. r/Bitcoin. log in sign up. User account menu. 273. Overstock.com Assembles Coders to Create a Bitcoin-Like Stock Market WIRED. Close. 273. Posted by. u/btcdrak. 4 years ago. Archived. Overstock.com Assembles Coders to Create a ... Monday morning, Wired reported on an Overstock.com filing with the Security and Exchange Commission (SEC) that indicates the company will be releasing its stock on a cryptographically secure distributed ledger system. The implication seems to be that the distributed ledger system will be either Bitcoin’s blockchain or a similar technology, possibly Overstock’s own or one of the existing ...
Blockchain is going to change the world: Overstock CEO
Overstock.com CEO Patrick Byrne discusses his outlook for bitcoin and holiday shopping. The wired guide to bitcoin Bitcoin is a digital currency. Like other currencies, you can use it to buy things from merchants that accept it, such as Overstock.com, or, as is more often the case ... Overstock.com CEO Patrick Byrne on the company's decision to launch a new blockchain mobile money app. Overstock.com CEO Patrick Byrne discusses why he was an early believer in bitcoin and how he plans to change the marketplace with blockchain. Overstock.com shocks the nation by hustling Bitcoin payments into the system. IF YOU ARE A MONTHLY SUPPORTER, DON'T CANCEL! The new website will be up soon. You can make a one-time donation at ...