Monday, October 24, 2011
Bitcoin Set To Unleash Massive Tsunami Wave Of New Development With New Features
Bitcoin will be more than a currency if multi-transactional features are added to the core code. Right now the developers of the crypto-currency are designing initial support for new types of transactions. What are multi-transactions? Multi-transactions allow the possibility of ‘contracts’. According the wiki, “A distributed contract is a method of using Bitcoin to form agreements with people via the block chain. Contracts don't make anything possible that was previously impossible, but rather they allow you to solve common problems in a way that minimizes trust.” This means services based on cryptographic trust are now possible that was previously only possible with paper, pen, and a line to sign. The new possible services that could be developed include escrow services, secured deposits, dispute mediation, assurance of goods, smart property, etc. These features would eliminate the need for paper contracts in many different industries. In addition to banking, currently existing sectors that could be affected include title companies, lending services, billing services, ownership of anything digital (cars, phones, computers), home loans, car loans, funding services, etc. The cost of creating these contracts in bitcoin will be practically zero.
Suppose there is a person called ‘A’, ‘B’, and ‘C’. The new transactions could include the following:
(A and B)
(A or B)
(A and B) or C
Bitcoin will be more than a global currency. Right now it can replace paper based cash. It is now being designed to be able to replace paper contracts in many financial industries. Bitcoin could be the world’s first global cryptographic contract system. Anyone will be able to do business with anyone, anywhere in the world and in an cryptographically trustworthy manner.
Posted by Jim at 1:03 PM