Bitcoin, Blockchain Splits And What It Means For Business | Touch Latest Local,World,Tech,Entertainment,Health,Sport News
19 April 2018 00:00:00 AM Breaking News

• BUSINESS

Bitcoin, Blockchain Splits And What It Means For Business

Blockchain was one of the technologies which I predicted back in January to break through in 2017.

The distributed, consensus-dependent ledger technology is really just a new form of database – but due to its trustless and encrypted nature, one which could potentially revolutionize many aspects of finance and business.

Virtual currency Bitcoin is undoubtedly the most visible implementation of the technology right now – its rapid growth in value has made it attractive to speculative investors but businesses are increasingly accepting it for goods and services.

Recent developments in the bitcoin economy – an economy currently valued at close to $70 billion – have demonstrated some of the fundamental characteristics of blockchain-based applications. And although it is still early days, they appear to go some way towards validating the claims of blockchain evangelists that the platform represents a robust and truly decentralized medium for logging data transactions.

(For those who are completely new to this, my Complete Beginner’s Guide to Bitcoin provides an overview of the important ideas)

Shutterstock

Blockchain split – what is it all about?

Blockchain apps and Blockchain-based currency such as Bitcoin in their purest form are decentralized and governed by consensus – there is no controlling authority (such as a bank or government) which can interfere with supply or disrupt Bitcoin-driven commerce (except, in the case of governments, by legislating).

One way to think of it is that Bitcoin is entirely deterministic – it is governed by mathematics and encryption and adjudicated by the consensus of its users. These “rules” were put into place when the cryptocurrency was unleashed on the world in 2011. Crucially, however, built into the model is the ability for it to adapt and evolve to changing circumstances.

One such changing circumstance is the vast increase in the amount of users, and therefore the amount of transactions being written to the blockchain itself. Transactions are approved by “miners” – individuals and groups providing the processing grunt to cryptographical algorithms which securely record the movement of coins between wallets.

Inevitably this led to a slowdown – with increasing numbers of transactions being written, transactions had begun to take longer to be recorded (sometimes days) and the fees – fractional values of Bitcoin which are shaved off transactions and passed to miners as “payment” for their processing services – creeping up.

Basically, because what happened next is a great example of why blockchain-based applications are so revolutionary. Because the software used to operate Bitcoin wallets and nodes is open source, anyone can “fork” it – producing a parallel blockchain operating independently of the original. This is what happened at the start of this month, bringing into existence a new version of the currency known as “Bitcoin Cash” (with the original increasingly being referred to as Bitcoin Core to avoid confusion.)

Whether the new currency – allowing larger size blocks of data to be written to the new chain, therefore speeding up transactions – goes on to enjoy the success of its older brother will depend entirely on consensus – how well-used it becomes. This means the whole issue of the split is resolved in a democratic process. Of course, unlike with, say, elections, no human counting, verification or oversight is necessary (or possible) – meaning there can be no corruption. The entire process is managed and governed by the original “trustless” cryptographical framework created for Bitcoin.

Recommended

Loading...

Related Posts

Dangote to invest additional N106bn in local sugar production

Africa’s richest man, Alhaji Aliko Dangote, plans to invest additional

Read More

Cattle breeders deny N350m bribe to Benue Assembly over anti-grazing bill

National Coordinator of MACBAN, Alhaji Garus Gololo in a chat with The Guardian

Read More

U.K. economy records slowest growth in 2016 – Statistcs

United Kingdom economy grew by just 0.3% at the start of the year, the slowest g

Read More

Regulators, Whole Foods shareholders approve Amazon deal

Whole Foods shareholders and federal regulators approved Amazon's $13.7 billio

Read More

Kenya unveils first Cargo train in a century

Kenya’s newly built 13.8 billion dollars standard gauge railway was unvei

Read More

OVH Energy advance customer focused service delivery with free car Diagnostic offer

OVH Energy, licensee of the Oando Retail brand, as part of it strategies to adva

Read More

AITEO supports clean water as Face Africa comes to Nigeria Saturday, April 15, 2017 0 38

The 7th edition of the Face Africa Wash Gala took place at the Mezzanine, New

Read More

Yahoo's first-quarter revenue jumps 22 percent

Yahoo's first-quarter revenue jumps 22 percentYahoo Inc reported a 22.1 percent

Read More

Bitcoin in Nigeria and How to Make Money With It

What is Bitcoin?A lot of people myself included have heard about bitcoin in the

Read More

CentrespreadGrey, a testimony to commitment and re-invention – Kola Ayanwale

Chief Executive Officer of CentrespreadGrey and one of Nigeria’s most suc

Read More

Also Read

Ikoyi house where N11.6b was found not mine – Mu’azu

Alhaji Ahmadu Adamu Mu’azu, a former National Chairman of the Peoples Dem

Read More

FIFA president Infantino makes first visit to Cuba

FIFA president Gianni Infantino made his first visit to Cuba on Saturday as he m

Read More

Gunman shoots Benue APC councillorship aspirant

The All Progressives Congress Primary in Ekile ward in Ado Local Government Area

Read More

Natural-born killers: The fruits and veggies that could poison you

Underneath its spiky exterior, the fruit is smooth, juicy and beautifully sweet.

Read More

Boko Haram Attacks Maiduguri Ahead Of Osinbajo’s Visit

Suspected Boko Haram sect members have launched attacks in Maiduguri, the Borno

Read More

Data Visualization Is Key To Analyzing Unstructured Data

Data visualization has evolved dramatically in recent years, with organizations

Read More

Living with the dead

Living with the deadMost of us don't like to think or talk about death, but ther

Read More

Naira in upswing as CBN supply crashes dollar

The Naira firmed up at the Bureau de Change (BDCs) segment on Thursday, trading

Read More

Delta records first case of meningitis in Warri "Warri:Nigeria"

Delta State has recorded its first case of the rampaging Cerebral Spinal Menin

Read More

Motorman ‘forgets’ to stop train; goes to yard

A Western Railway motorman piloting a Churchgate to Malad train did not stop the

Read More