Bitcoin Newbie Series: How to Get and Spend Bitcoin

We aren't used to authority being a peer-to-peer responsibility as opposed to something imposed by a centralized institution. Authority floating freely has already happened in information - when information became decentralized with blogging and the restructuring of the media industry, and in entertainment, where individuals became their own taste-makers. In these cases individuals must examine content and think for themselves about its quality and validity. The bitcoin revolution is the same thing happening now with currency, economics, finance, and monetary policy. It might seem harder to let go of centralized authority in matters of government and economics as opposed to culture and information but we will mature into it (The number one 'still-not-getting-it' question with bitcoin - "But who is running it all?"). Ultimately we could have as many currencies as twitter handles and blogs, all of which may be fully useful and accepted in their own hyperlocal contexts. Blockchain technology is push (user pushes relevant information for this transaction only) not pull (credit card/bank info on file to be pulled anytime authorized). Financial intermediaries operating on blockchain technology (i.e.; Overstock) would not have information stores to have to protect that are inevitably hacked (i.e.; Target, Chase, etc.).

Terminology
The word bitcoin is confusing because it means three different things. Bitcoin is used to refer to 1) the underlying technology concept (more appropriately called the blockchain, a decentralized ledger that allows individuals to engage in transactions without having to rely on a trusted third-party intermediary), 2) the technology protocol for the implementation of blockchain technology (individuals engaging in peer-to-peer currency transactions via encrypted electronic wallets with miners recording these transactions in the blockchain ledger), and 3) the actual currency itself. It is as if when Paypal launched, they would have called the Internet Paypal, upon which the Paypal protocol was run to transfer funds, and the currency of these funds was Paypal. More precisely, these 3 uses of bitcoin should be delineated as:

1. The underlying blockchain technology (an information technology akin as a ‘class of thing’ to the Internet) 
2. The Bitcoin protocol that runs on the blockchain for the tracking and transfer of cryptocurrency funds
3. The Bitcoin currency (denoted as btc)

The blockchain is a record of where all the btc are, all the addresses they are associated with now, and this history over all time. It is continually updated, every 10 minutes, a new block (a new page is placed in the record book) with all the latest transactions.

Bitcoin is a digital currency. This means that you do not have physical custody of your btc, they are not in your physical possession, they are not on your computer or mobile wallet; they live on the Internet and are associated with addresses (like an email address but too complicated to store in mind). Per your address and encryption key (stored in the digital wallet on your mobile phone or computer), you have the authority to move your btc around and transact them. 'Stolen bitcoin' is a matter of having insecure storage and sharing of passwords and private keys.

How to get Bitcoin? (after step 1, get yourself a digital wallet mobile app like BlockchainInfo or Mycelium) 

• (Easiest) Receive bitcoin as a gift or payment from someone else
• Buy bitcoin locally through bitcoin meetups or Satoshi Square trading events
• Exchange USD or other traditional currency for bitcoin without giving out your personal identifying information: Circle 
• Exchange USD for bitcoin where you do specify your personal details at one of the exchanges/markets like Coinbase 
• Buy bitcoin locally from an individual via LocalBitcoins or (coming) OpenBazaar 
• Gift yourself bitcoin with giftcards: use Gyft, Purse.io, Brawker, or Amazon giftcards 

Where to spend Bitcoin?

• Local Vendors in your City: AirBitz business directory app, Coinmap.org 
• Online airline tickets: CheapAir, Expedia
• Online merchants: general list; Overstock, New Egg, Dell

What is the Bitcoin Exchange Rate? 

• Bitcoin Average  (weighted average across exchanges, good in periods of volatility)
• Coinbase
• Bitstamp 
• Volatility Shielding (pre-futures) 
• Bitreserve 
• Coinapult

How to accept Bitcoin if you are a merchant (save on merchant processing fees, welcome bitcoin customers):

• General list of integration plugins
• BitPay
• Shopify
• PayStand (unified payment solution)
• WooCommerce (WordPress plugin description)   
• Micropayments (example: reading online content); bitcoin paywall
• Bitwall
• Coinlock

Intro Presentation: Beginner Bitcoin Workshop
Advanced Presentation: Blockchain: The Information Technology of the Future

Blockchain Health - Remunerative Health Data Commons & HealthCoin RFPs

The bigger concept behind cryptocurrencies like bitcoin is blockchain technology. The blockchain (a chain of transaction blocks) is a public transaction ledger, automatically downloaded and stored digitally in electronic wallet applications; a digital record of all transactions in a certain asset class like bitcoin. There can be different kinds of blockchains (ledgers) for recording and tracking different kinds of assets. Blockchain health is the idea of using blockchain technology for health-related applications.

At least four principal blockchain health ideas have been articulated so far:

• Blockchain Personal Health Record Storage – Personal health records would be stored and administered via blockchain like a vast electronic EMR system. Taking advantage of the pseudonymous (e.g.; coded to a digital address not a name) nature of blockchain technology, personal health records would be encoded as digital assets and put on the blockchain just like other assets like currency (bitcoin, litecoin, dogecoin, etc.). Users would permission doctors and other parties into their records as needed via their private key. In addition to creating vast repositories of medical health data records, the blockchain could also be a mechanism for quantified self data commons to amass and analyze data for preventive medicine purposes.

• Blockchain Health Research Commons - Health research could be conducted by aggregating personal health records stored on the blockchain. Users may feel more comfortable contributing their personal health data to a public data commons like a blockchain 1) in an encrypted pseudonymous form, and 2) for some amount of remuneration via bitcoin, or different kinds of healthcoin (which could denominate HSA dollars and be spent back into health services). The benefit of storing health data on the blockchain is that it can be analyzed but remain private. DNA.bits is a startup in the blockchain health research space.

• Blockchain Health Document Confirmation Services - Confirming that certain kinds of health information exist like proof-of-insurance, test results, prescriptions, status, condition, treatment, and physician referrals are just a few examples of health document-related services often required. The ‘notary function’ is a standard application envisioned for blockchain technology. This is the digital encoding of all manner of important documents (driver’s license, identity card, passport, home/auto titles, auto insurance, etc.) to the blockchain, which can be verified in seconds with encryption technology as opposed to hours and days with traditional manual technology.

• Doctor Vendor RFP Services – doctors and health practices could bid to supply medical services needed by patient-consumers. Like Uber drivers bid for driver assignments with consumers, doctor practices could bid for hip replacements and other needed health services, at minimum bringing some degree of price transparency and improved efficiency to the health sector. Further, this bidding could be automated via tradenets. 

More Information: 
The Institute for Blockchain Studies
Presentation (summary) and slides:  Blockchain: The Information Technology of the Future