There are a lot of misnomers about the inner workings of
the Bitcoins currency and the value proposition associated with it. In this
article I want to outline some of the key areas that are misunderstood. There
really is very little information on the official website for the Bitcoin Cash
project. For that reason there is very likely to be no formalized, concrete
reference implementation of the technology.
There isn't any official free-rider issue with the
bitcoin cash network at this time. However, there is a potential free-rider
issue in relation to the profit motive. If you work for a company that wants to
put in the infrastructure to run the system or for someone else, they could
have control over how the system runs and who handles the bitcoins for their
team. This could result in a conflict of interest that can easily be resolved
by making the bitcoin protocol open source. There's a potential here for a
serious problem if someone was to start a business based on mining bitcoins for
their own profit then diverted the funds into their own projects.
The fact that brewing is in the Bitcoin Cash Reference industry is
irrelevant to the fundamental nature of the technology. People in all
industries should be able to use the technology without worrying about the
potential for corruption and the problems that come along with an unregulated
system. The reason that the reference code is limited to only 14 characters is
because it simplifies the system for everyone. Anyone who understands the
coding can participate and this makes it easy for anyone to get started quickly
and effectively. Anyone who understands how to get a file on the computer can
initiate a transfer. The fact that many businesses and people that have never
been involved with the internet before can make money using this protocol is
what makes it so special.
The real challenge here is going to be to allow people to
make as much money as they want from whatever they wish because of the inherent
incentives of using the bitcoin cash protocol. The most obvious one is going to
be grandma's network of networks but the reality is that if you are able to
connect to enough computers that act like a supercomputer, then theoretically
you could handle thousands of transactions per day. Imagine being able to
handle the trades for those who just want a few coins, and then be able to
recommend which transactions they need next in order to maximize their profits.
However, the question is can you trust your grandmother's
network or the wider toomim network that exist outside of her house? It's not
as if anyone other than grandma is going to be using the bitcoin reference
client to conduct all of their transactions. At the end of the day, it really
does boil down to trusting the person that's actually set up the system. Even
if you trust the person to make the transactions per the protocol, it doesn't
mean that you can trust every single transaction that they conduct. This is why
I believe that this is going to be such an important area of innovation within
the dementia society.
What this means for us is that you will need to take the
time to go over every single electronic transaction that occurs on the currency
network before you ever purchase any. There will also have to be a mandatory
annual audit in order to make sure that everything has been done according to
the protocol. As long as grandma is able to operate her computer, then the rest
of the world is fair game. You can play the role of the benevolent dictator if
you so desire.
Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.
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