All credits to: Nala – Original post: https://goo.gl/5VBqbB
When Dominik Schiener moved away from home, his parents’ electricity bill halved. Schiener had already earned half a million euros with Bitcoin mining, because his computer had managed to earn the virtual money with complicated computing power. Almost five years ago, when the 17-year-old Schiener moved to the so-called crypto-valley in Zug, Switzerland, it was the gold rush valley of digital currency fanatics. “I will become so incredibly rich,” thought Schiener at that time, with a platform for the exchange of real currencies such as euros or dollars in digital money. A year later, all his money was lost.
Schiener was not the only one who had such ideas at the time, and like everyone else he faced a problem: no bank wanted to work with him. Bitcoin was considered to be irrelevant, only as a money laundering instrument for drug dealers. Without a bank account, however, a currency platform is profoundly useless because virtually no trading can take place. “There were a lot of people who thought ‘fuck the banks, we decentralize everything’, but we could not do business without banks,” says Schiener. Often, when he speaks, English and German words mix. Schiener comes from South Tyrol, but he actually lives on the Internet.
At 14, he has hacked into first place in the world rankings of the computer game “Call of Duty”. Because many players wanted it too, he sold his knowledge and earned ” some 10 000 euros”. The lay on a Paypal account, but only from 18 is allowed. Therefore, Schiener became aware of Bitcoin about the hacker scene: The digital currency also provided young people with financial inclusion. “Why can not I be an entrepreneur when I’m 14 years old?” He wondered – and started mining Bitcoin.
Although Schiener is only 22 years old today, he is one of the few Blockchain veterans. This is only partly because he made a lot of money with the technology and lost a lot of money. Because Schiener has been working with technology for eight years, when the concept paper for Bitcoin was just two years old. But only recently has all this received such attention
But Schiener is also one of the very few voices who see in the hype surrounding Bitcoin and Blockchain a great danger. “We just have a huge bubble, the expectations are far too high,” he says. Digital currencies are overvalued: if Ripple’s market capitalization fluctuates between $ 60 and $ 80 billion, it’s roughly at the level of Paypal – though technology does not allow nearly as fast transfers. And if a founder of Ripple is one of the richest people in the world for a short time, Schiener considers this to be “one of the most ridiculous things of all time”. Schiener sees his own attitude of a few years ago as a danger today: last year, it was all about the question of how to get rich as quickly as possible.
For Schiener, 2018 is the year in which blockchain technology finally has to prove its worth. Your developers need to show that they really add value, even to big companies. “There are already some pilot projects, but nothing that really goes into production yet,” says Schiener. “And every project I know has huge problems: there are uncertainties, and people lose money.” Still, he’s convinced that the system is the blockchain, where files are stringed together in blocks like a chain, and thus transactions transparent and tamper-proof, has a huge potential.
Otherwise he would not have worked on it after he fell on his nose. When he moved back in with his parents after the adventure in Zug, he promised them at least to graduate from high school, so they worry less. For this they should just stop asking to ask how he wants to make money with computer gossip. Actually, the boy should have become a mason like his father. Now Schiener lives in Berlin and has just bought his first own start-up, with digital money of course. How expensive that was, he can not yet say until all contracts are completed, but it is “a significant amount”.
In fact, Schiener set up the Iota payment system in 2015 from his nursery with three other computer experts, who of course were sitting somewhere else in the world. This is a system based on the blockchain, in which mainly machines in the internet of things with smallest amounts to pay each other – so practically crypto money for corporations. The founders have set up a foundation for this, employing 50 people and opening offices in Seoul and Tokyo. Just a few days ago, the Japanese invited Schiener to research projects with Iota with the support of the government and banks. In Germany, the Iota Foundation cooperates with, among others, Bosch and Daimler or major tech companies such as Cisco and Redhat. “For the ecosystem to prove we really need to work with big manufacturers.
In addition to the increasing popularity of Iota, which increased in the wake of the crypto-hype, Schiener has also helped, that he has won a hackathon, so a programming competition, in Shanghai. He was able to show that there is really an idea behind Iota that could benefit companies. For example, in supply chains: A container leaves the factory in Shenzen, whose data is transferred via iota protocols from sensors to the port. The customs can grant the release, because it is always clear what journey the container made so far and what its content. So the container can be automatically loaded onto the ship, and at the same time the exporter gets his money from the bank. The trust problem with middlemen is thus turned off.
But at the same time there are risks: because the package needs sensors, and you also have to trust them. “Hardware security is becoming very important, and that’s why manufacturers are important partners,” says Schiener. Finally, the Internet connection in the transport may not break off – for the success of Blockchain so mobile technologies such as 5G are essential. They are mainly driven by industry. Founders who say they’ve just turned over a $ 5 billion market with their start-up are finding Schiener ridiculous. They have no idea of the difficulties that companies are facing.