Fortune Magazine today calls Bitcoin an exciting library card in the cloud. It is a good analogy because Bitcoin is the future of peer-to-peer exchange. You can store data on the blockchain and it is recorded with the date stamp. It is always there in the future.
The simplicity of the blockchain is that new transactions are stored on a “block” of data. The new block refers back to the preceding chunk of information, which is the chain. Bitcoin is not produced in itself and transferred physically. Jeff Garzik, one of the five original bitcoin core developers, explains that the “register of deeds” is the transfer item online anywhere in the world.
Garzik considers blockchain the most secure record-keeping technology ever devised. The blockchain provides for each piece of information stored with a time-stamp and then it can be replicated on the other servers around the globe.
Bitcoin has been called the disruptive force for the future and it is justified. Google and IBM are developing technology to utilize the blockchain technology. Blockchain can provide accuracy and limited human input to the financial and insurance industry for the process of developing rate analysis for mortgages and other lending services. The technology can offer an instant calculation and a date stamp for the transaction which removes inaccurate record keeping. It is use of an algorithm that provides benefits to transactions with immediate update availability. This brings financial exchange and other exchanges of value into the future technology that is happening now.
Arthur Levitt, former US Securities and Exchange Commission Chairman, did not know about Bitcoin but his research and interest has led him to become an adviser to Atlanta-based payment processor, BitPay, and Vaurum, a Palo Alto-based bitcoin exchange for institutional investors. Levitt provides his reason in serving as an adviser in that he hopes to “help them understand the imperative of a robust approach to regulation” if bitcoin is to fulfill its promise to continue in the world or finance as a peer-to peer exchange.
Nobel laureate economist Milton Friedman wrote of an electronic currency in the late ‘90s. Friedman saw it as a reliable e-cash method whereby you can transfer funds from A to B on the Internet. He stated his belief, “I think that the Internet is going to be one of the major forces for reducing the role of government.” He also noted that it would receive disapproval and fear from the banks and government monetary systems. Friedman considered governments as “collectivism” which were too powerful and far reaching in their power.
Consider the Internet of Things and technology in the new paradigm in life. Ryan Selkis of the Digital Currency Group sees the future of Bitcoin and blockchain as an immediate inventory system, “Every time you’re running low on printer ink, it could notify the block chain and send you more.”