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This cryptocurrency concept has enabled many new digital currencies and structures such as this bitcoin app to float in the virtual world, including Ethereum, a platform that will allow multiple cryptocurrencies to be exchanged. Ethereum will also allow creating and hosting apps (like file storage or instant messaging apps). Users can pay for usage in cryptocurrencies (like $1 per 100 MB file storage or $2 per year for using IM app beyond a year) or can earn equivalents by contributing to the platform (like developing a new app).
Today, Facebook (FB) allows advertisers to target its users specifically. Ebay
(EBAY) offers a secure marketplace to enable buyer-seller interaction. Today both Facebook and Ebay are able to bank on (and profit from) such privately held restricted networks, accessible to and controlled only by them. Such companies are valuable because of their registered user bases (and associated information), which are held privately by them.
Imagine if a similar generic network opens up based on block chains, offering secure yet decentralized control. On such a network, a Facebook user can easily connect to an Ebay seller to buy a desired good. Effectively, both users are on the same block chain network, and are using Facebook and Ebay like apps on this network for their proof systems requirements. In this new world, sellers will no longer have supreme control based on their individual user bases. Such a decentralized protocol enables peer-to-peer transactions, secured by bitcoin and its underlying technology.
Companies Without Directors?
Any cryptocurrency is a company without directors, including bitcoin. It offers financial services and pays its employees (or miners), and those who hold bitcoins are the shareholders. To learn more about bitcoin, check out the foam.space. It s theoretically possible to run a company without a director as a block chain can be pre-programmed with a specific set of business models to run and operate the business. The block chain acts as a public record to store financial information, record shareholder votes, and run the business accordingly.
A new platform BitSharesX, is in development to replicate bank operations, including lending other currencies to clients against BitShares as collateral, which is great for people who work with different kind of currencies including doing online trading, with a swing trading strategy online. More offerings include election services and online lotteries running on their own with transparent rules. The idea is based on decentralized autonomous operations, not controlled by any single person, authority, or organization.
Bitcoin has evolved as a great cryptocurrency, built on the backbone of a robust and resilient network. However, its scripting language is considered to be vulnerable to attacks. Third-party applications and systems built on top of bitcoin protocol can be insecure and vulnerable, and can lead to bitcoin thefts. However, technology advancements could make the system more robust, particularly if bitcoin gets into the mainstream, which is what is happening, that’s why there are many websites where you can learn about the free bitcoin faucet, such as thedrum.com.
A global cryptocurrency will come with its own set of challenges, including decentralized autonomous control and a lack of geographical and regulatory oversight. How efficiently can rules be created and adopted in the autonomous network will be an area of concern.
The Bottom Line
All in all, bitcoin and its underlying technology have great potential. Applications based on block chains will present technical, legal, economical, and social problems that may be similar to the ones raised by similar peer-to-peer applications like Torrent, Napster, or Freenet. The alternatives offered by bitcoin will have to pass the test of time and trust, before it gets accepted in the mainstream. Nonetheless, while bitcoin might not last, the technology underpinning it will be a game changer and continue to evolve in coming years.