Bitcoin: Digital Currency or Technology?

0
124

Bitcoin: Digital Currency or Technology?

ForexMinute.com – For many of you, Bitcoin is a digital currency – a strong alternative to day-to-day used fiat currencies. Those who have a little information on the subject have realized it is a decentralized currency that uses cryptography (thus called cryptocurrency) and peer-to-peer (P2P) technology to ensure the authenticity of transfers without appealing to a central authority.

However, the innovation behind Bitcoin is not about money. Bitcoin solves the problem of trust in a distributed network of machines by allowing them to reach a consensus without the intervention of a central authority.

**relatedarticle**

To do this, Bitcoin records transactions in a public ledger which is called the “blockchain” and can be found on sites such as blockchain.info, and blockchain is not just limited to the currency.

Bitcoin will allow us to share many other things such as title deeds or actions through the colored coins example. The Bitcoin protocol will also enable us to carry out contracts of a new kind which is called smart contract and can be triggered under certain conditions.

This technology already allows us to manage domain names in a decentralized manner. For example, Namecoin sends encrypted messages when Bitmessage certify a document in the blockchain through proof of existence or create services and social networks without central authority.

Bitcoin is the first and foremost platform on which we can build and decentralize a multitude of applications. The decentralized architecture combined with Bitcoin technology will allow us to build and maintain applications that will be managed by the community, for the community.

Imagine Facebook for instance, a social network completely decentralized, without censorship, free, and utmost private. It will grow faster than you think. In case of coins, it may take time. Media who speak only currency did not understand the importance of this technology. And if you assimilate that Bitcoin is a technology before a currency, you can better understand the importance of this phenomenon.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

Subscribe to our daily forex newsletter for free by visiting www.forexminute.com/newsletter