Blockchain technology and Bitcoin is on everyone's lips but hardly anyone understands what it exactly is. Nevertheless, the expectations are high. So first of all let's become clear about digital cryptocurrencies such as Bitcoin so that we can understand this technology's potential for the industry.
Blockchain technology and Bitcoin is on everyone's lips but hardly anyone understands what it exactly is. Nevertheless, the expectations are high. So first of all let's become clear about digital cryptocurrencies such as Bitcoin so that we can understand this technology's potential for the industry.
When we talk about Blockchain technology, everyone thinks about cryptocurrencies. But what can Blockchain do and how can it be useful to the industry? To answer this question, we've got to go back ten years to when it first came about. It marks the moment of Bitcoin's birth. The 2008 recession led to a lot of people losing faith in the financial sector. Investment decisions of large banks and insurance companies proved to be wrong, which had disastrous consequences for a large number of state budgets.
With Bitcoin, Satoshi Nakamoto (a pseudonym) created an alternative to the pre-existing financial sector in 2008. It is an alternative form of payment, which should do well without the supervision of governments, banks and large companies.(Source: Pixabay / CC0 )
An Alternative for Transactions Without Intermediaries
With Bitcoin, Satoshi Nakamoto (a pseudonym) created an alternative to the pre-existing financial sector in 2008. It is an alternative form of payment, which should do well without the supervision of governments, banks and large companies. Nakamoto’s whitepaper «Bitcoin: A Peer-to-Peer Electronic Cash System» also explains the technical and economic principles of cryptocurrencies. It is supposed to allow one party to make payments to another online, without a reliable broker being involved.
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