You see, there is no central authority in bitcoin. No government runs the currency, no bank oversees it, there’s not even a central processing center. Everything is decentralized and the community runs itself.
Now stop and think about that for a moment, how can a currency run itself? Most modern currencies are managed by entire branches of government, and services are provided through a huge array of financial firms who monitor transactions and the flow of money across the globe.
Bitcoin doesn’t need any of that, but instead relies on the blockchain. Long story short, the blockchain encourages bitcoin users and companies to process the vast about of data required to track all bitcoin transactions and the location of all bitcoins ever created.
In exchange, the so-called miners who use their processing data are rewarded with the creation of new bitcoins and also processing fees. The result is an autonomous, decentralized processing system capable of sustaining an entire currency.
Now, many investors, people, and companies believe that bitcoin’s blockchain technology could be the key to process vast amounts of data in other industries. In recent days Overstock announced that it was launching an equities trading platform based on blockchain tech. The NASDAQ is also looking to use blockchain tech to enable stock and asset trading.
The Deputy Director of Financial Services at the Gates Foundation recently came on record arguing that blockchain tech could allow for the delivery of traditional financial services to impoverished communities. Meanwhile, a startup is working on an online encyclopedia that will be run and processed solely through blockchain tech.
Many experts, financial analysts, and others are now predicting that blockchain tech could revolutionize the world. With such vast amounts of computing power sitting unused, the potential for blockchain tech to revolutionize the way data is processed is huge.
Think about it, when you go to sleep at night you probably shut your computer, mobile phone, tablet, and other gadgets down. This means their processing power isn’t in use. Why not use it then to process data, and potentially earn some money on the side?
With blockchain technology that might just be possible.
