Storytime: Blockchain forms the beating heart of Bitcoin. In time, Blockchain will power many radical, disruptive technologies that smart people are working on right now.
But first of all, let’s agree that the ideas of Bitcoin as a currency or the Blockchain as a consensus mechanism are revolutionary if and only if their decentralized nature is preserved. The moment one of them becomes centralized, whether due to a flaw in the protocol or the concentration of mining power, it is no better (and probably worse in fact) than fiat money, e-gold, or any other monetary scheme which is vulnerable to capture by a minority, and therefore vulnerable to abusive seigniorage and capital controls.
Given the crucial requirement to preserve decentralization, the problem Satoshi had to solve while designing Bitcoin was how to incentivize network participants to expend resources transmitting, validating, and storing transactions. The first step in solving that is the simple acknowledgement that it must provide them something of economic value in return. Maybe Satoshi considered sending each new block’s miner a hand-written thank you note with a picture of a cat. Or of a potato. But probably not.
Bitcoin is giving banks a run for their money. Now the same technology threatens to eradicate social networks, stock markets, even national governments. Are we heading towards an anarchic future where centralized power of any kind will dissolve?
There is no security today. No one is secure. That’s why people need ethical hackers to protect systems against the nonstop threat of security vulnerabilities and the black-hat hackers who exploit others for fame and money. Citizens of the Internet, wrapped in the superhero role of upholding a hacker’s ethical code in a virtual, non-occupied world.
So here is my first guest post on CoinTelegraph about startups changing the landscape of Hungarian fintech sector. The article was originally published on Bitcoin Bázis, a Hungary based news & affiliate site. The aim of the company is to become the cornerstone when it comes to digital currency, blockchain technology news, analysis + related products and services in the Hungarian market.
Baffled by Bitcoin? Confused by the concept of cryptocurrencies? Fear no more, we explain it all.
Full article: Will the real Satoshi please stand up?