What is the potential of Blockchain technology

The Bitcoin Property explains the potential of Blockchain technology:

Watch this short video from the Bitcoin Property on the technology and potential of Blockchain.

Do not forget to read the awesome transcript and case study after the video!

What is Blockchain

“Blockchain” is a decentralized and transparent ledger system which allows us to achive decentralized consesus amoung an unlimited number of parties.
These parties may even remain anonymous, thus Blockchain allows us to build “trust-free” system – system that allow us to deal confidently with other regardless of trust.

Blockchain is a network of distributed ledger system. The ledgers are open to all parties to audit its data, and data is synchronized accross all ledgers on the network so at all time all ledgers on the network have the same records.

Ledgers on the network verify the validity of every new data that is to be added to their database using a protocol agreed upon by all the nodes. When a node verify the integrity of a new data, it will be reward with new “Bitcoin”, and the data will be added to the database of all the networks.

Data in these decentralized databases are stored in batches known as”block”. A “block” has a limited number of transactions it can contain. As more transactions are verified, they will be zipped into new “blocks”. The continues creation of blocks in a sequence is known as the Blockchain.

What is the potential of Blockchain technology

While Bitcoin is spearing-heading the revolutions in the Financial Technology sector(FinTech), Blockchain has the potential to transform human civilization.

The next phrases in human civilization is after democracy is smartness. After democratic civilizations, smart civilizations are next. Smart civilizations are a civilizations where the environment is “smart” enough to responde to stimuli and ajust accordingly.

Smart civilization is the vision of the $16 trillion Internet of Things. IBM, Intel, Samsung and Google are leading the way for the Internet of Thnigs smart world.

Smart digital voice assistants on smart phones, smart driverless cars, smart houses where alomst everything could be controlled by a mobile app, 4d printers, smart dones, smart beacons and virtual reality are just the beginning of the future smart world.

In the future smart city, almost all system powering the city will be controlled digitally by smart computer apps. A majority of services will be automated to smart apps which will have the ability to analyse feedback collected by their sensors, process it into meaning information and act autonomously on it.

Such system will include public transport systems, shopping and self-services systems, energy systems, security systems, sewage collection systems and other critical systems supporting life.

Such system are delicate and should not be vunerable to takeovers from terrosits or bugs in the apps running them – none of which can be guarnateed for a centralized system.

Blockchain would be the idea system to power a smart city as it is decentralized, economical, censorship-free and transperent. Due this the decentralized nature of Blockchain technology, it would be impossible for anyone to hijack the system, all activities on the system would be open to all and the cost of running such a system would be grealty reduced.

Blockchain would alsounsure that citizens live a more bold, free, open and uninhibited life as it would deny governments the power to dis-respect eh privacy of its civitens bb spying on them. Governments will also not be able to censor the right to access goods or services, online activities, funds or assets of any citizens without public knowledge or consent.

IBM, Filament, Linux and Cisco are among several organizations who are already working to implement Blockchain technology into the Internet of Things.

Bitcoin and its Blockchain technology may be the greatest technological distructers of our generations.

Bitcoin is digital gold

For centuries, Bitcoin has been the price of riches, and wealth was measured in Gold.

Gold was everything when things was all mechanic and analog. Then we went digital and then came Bitcoins.

Wealth has moved unto the digital landscape.

Gold is a precious metal, but what is the digital version of Gold? The digital version of Gold would have to share most of the characteristics of Gold: be a medium of exchange, scares, counterfeit-proof and indestructible.

What is Bitcoins?

Bitcoin is the first online decentralized currency. Bitcoin allows for near instant anonymous trnasaction among among peers.

History of Bitcoins

In October 2008 the concept of Bitcoin, a decentralized peer-to-peer monetary system was introduced in an emailing list by an unknown entity under the name of: Satoshi Nakamoto.

In January 2009, Satoshi Nakamoto released the open source Bitcoin software to the public.

The concept of decentralized peer-to-peer monetary system that could not be controlled or monitored by the government appealed to anarchist and other sharing economy. Slowly the adoption of Bitcoins continued.

[See the origial article: Recap of Bitcoins]

Mining bitcoins

Like Gold, Bitcoin is also mined – digitally.

Every second, transactions happen on the Bitcoin blockchain and these transactions must be verified by all machines on the network and appended into a new block.

Multitudes of these decentralized blocks are called the blockchain. Mining Bitcoin is the process of verifying that these Bitcoin transactions are accurate so they can be appended into a blockchain. New blocks are created approximately every 10 minutes.

Bitcoin is the crypto token released as reward when miners verify new blocks. Bitcoins are rewarded at a rate of 25 new Bitcoins for every new block created. But the reward is cut down into half ever four years.

As at now only 12.5 new Bitcoins are rewarded for every new block until mid 2020 when there will be another halving to 6.25 new Bitcoins for each block.

This halving continues for every four years until the full 21 million Bitcoins has been created somewhere in the year 2140. Each Bitcoin can be dividend into 100m bits, and each bit is identifiable and programmable.

Technology

Bitcoin is built on a distributed archive of blocks of all transactions that every happen on the network. Multiple transactions are grouped into blocks and every computer on the network has a copy of these blocks of transactions. The information in these blocks is open and accessible to all. This way everyone can tell what belong to who and who is doing what, at any given moment.

This record that Bitcoin miners keep of the all transactions in the network is known as the blockchain. The blockchain is a decentralized network of ledgers that all have the same records and agree to the validity of every new block created.

Value of Bitcoin

The value of Bitcoins is not in the crypto currency Bitcoin itself. Instead its in the technology and industry created by Bitcoins.

The technology of Bitcoins has ushered us into an age of trust-less, decentralized and autonomous system while the industry created by Bitcoins has unleashed an trillion dollar industry which could power the Internet of Things.

This new industries created by Bitcoins and Blockchain has seen massive interest and investments becoming termed the Block Rush.

Bit Gold

Bitcoins and Gold have enough similarities: they are both mined, they come in fine quantities, they cannot be counterfeited, they are precious, are a medium of exchange and come with an industry worth billions.

It was not coincidence that Bitcoin founder Satoshi Nakamoto in the White paper of Bitcoins likened Bitcoin miners to Gold miners. Bitcoin is the Gold of the digital age.

The term Bit Gold is used as a neologized metaphor to symbolize the similarities of Gold and Bitcoins. If Bitcoin is the digital gold, then we might as well refer to Bitcoins as: Bit Gold.