Bitcoin Entering Corporate World?
The technological development of the cryptocurrency Bitcoin could alter the way of carrying out the business transactions by major corporate houses. The management of digital rights could revolutionize the corporate world by bidding adieu to paperwork resulting from business dealings.
Bitcoin was invented with a thought to replace paper money. As the currency gets old, the idea seems farfetched. However, Bitcoin has bagged a golden opportunity to impact everyone by the technological leap of Blockchain systems. This virtual currency depends on cryptographic evidence rather than trust. It implies that Bitcoins network restrains any meddling or deceit in transactions. It functions with a key part of it as a public ledger transaction- Blockchain, which is distributed across numerous computers.
Any transaction related to change in possession is documented in the Blockchain system. It can only be done when all the computers listed on the network ‘approve’ to the change. It manages transparency and prevents re-usage of Bitcoin by the same owner while the system is waiting to document the operational dealing.
Jerry Cuomo, VP of Blockchain Technology at IBM, affirmed-‘There are numerous probable functions which can be carried out by Blockchain systems which can be liberally employed to varied industries. This signifies that Blockchain has overgrown Bitcoin’.
Cuomo emphasized, ‘I was not a miner, way back in 2009, when Bitcoin was introduced. With time, I realized that Blockchain could have widespread implications and it could solve broad array of issues both for companies as well as government’. Staff at IBM, did experiments in leisure time and eventually lead the company to witness massive prospects of the Blockchain.
It can be widely used for a scam free voting, to carry out monetary transactions much quicker than the bank, to carry out instant trading and to check any discrepancy related to stocks by brokerage houses.
To make a Blockchain widely accepted and used, it needs to be flexible which would require an open source programming project much superior than Bitcoin. It is where the Hyperledger Project steps in.
Linux Foundation, with its Hyperledger project aims at creating an open source system which can be shared and edited by multiple users but with a shared code base. It signifies that while using this system companies will be creating standard and rules for coexisting on the same Blockchain system. Everyone corporate giant wants to claim their share in this technological advancement and companies like IBM, Accenture, Fujitsu, Intel and Hitachi have already committed to Hyperledger Project.
However, one should take consideration of certain challenges which Blockchain has to face. For example – It currently can run maximum of seven transactions per second while credit card companies manage thousands times of seven within a second. Hence, to succeed it needs to be much faster. It has to avoid schism that has constantly bugged Bitcoin developer community.
Cuomo asserted that there is widespread consent on how to evade these issues while the Linux Foundation has exhibited that it is a master when it comes to managing opposing visions and egos of the giant corporate houses.
The future of Bitcoin seems uncertain, but a part of its technology in the form of Blockchain might indeed change the economy.