Open Environment Of Bitcoin Vs Distributed Ledger Technology
The next big Bitcoin debate is now on public blockchains (Bitcoin) versus distributed ledger technology. This was made evident in a panel discussion that was recently held to talk on cryptocurrency, organized by the Cato Institute. It was revealed in this event, that consortium blockchains are not a competition to Bitcoins, rather they are distinct and operate for different purposes.
It can’t be disputed that Wall Street backed distributed ledger technology can’t offer similar level of openness as provided by Bitcoins. Distributed ledger technology (DLT) may be, ofcourse, great for operational efficiency.
The open environment of Bitcoin is the single biggest hook for its users. LedgerX CEO Paul L. Chou, one of the speakers at the event, couldn’t disagree and shared the idea of open ledger could be handled even by a 12 year old. He added, that if the 12 year old was a programmer he could even build an application around that and the next Mark Zuckerberg could well come from this stream of open access finance. Further down he also projected Bitcoin’s future in the area of micro-finance.
There have been other payment platforms in the past, such as Paypal and Ripple that have allowed developers to freely create applications around their system. The traditional financial system has to intervene when its about such a big launch that can literally overhaul the financial industry.
The view of the financial institutions was also shared in the event. R3CEV General Counsel Jacob Farber, another speaker in the event, share why financial institutions are not so pro Bitcoin. The reason he cited were technical in nature and also pertaining to old practices of Banks in using permissioned ledgers based on permissioned models.
However the point of permissioned ledgers was also refuted by LedgerX CEO Chou, who said they are not unbreakable chains. He pointed the real bottleneck for Bitcoin is to make itself relevant in a permissioned environment. He added that mining could one of the important area for Bitcoins. Mining can have implications for the distributed ledger technology in question.
Bitcoin essence is in its free environment that doesn’t have any third party censorship and the use of mining could pose a bigger threat to this unique selling proposition.