No doubt, Bitcoin is changing the
global financial landscape. It successfully introduced a trustless peer-to-peer
electronic cash system excluding third parties. Although Bitcoin evolution will
continue, indicators now show that the network will serve machines more than they
do humans in the near future.
Bitcoin as a Currency for Machines
In a tweet, unwriter noted that one of the biggest misunderstandings of Bitcoin
is the assumption that it is created only for human use. But what enthusiasts don’t
believe is that Bitcoin’s functionality extends beyond sating human needs.
Here’s what he tweeted: “Yes Bitcoin is a peer to peer electronic
cash system. A cash system not just for humans but for machines. Every
misunderstanding of Bitcoin comes from thinking Bitcoin is only for humans. The
vast majority of Bitcoin usage will not be between humans. It will be
At the moment, BTC related
transactions runs into millions of dollars according
to data from Coinmarketcap. The only downfall is that these transactions are off-chain, manual and
recorded by humans and thus susceptible to corruption. Most of operations are
from Bitcoin traders, investors, stores that accept the cryptocurrency, payment
to employees, and many others.
Even so, Unwriter envisions the future differently. He believes that Bitcoin will become the meta-net of the internet of things (IoT), with some adding that it would become the preferred machine-to-machine currency. With supporting facts, Underwriter argues that a cash system is not designed only to cater to humans but also machines.
Bitcoin growth and consequent use in
the peer-to-peer financial landscape is encouraging and signals faith in
trustless network. And it is because of this that many believe its role in
global finance will only but increase in the future.
However, before we reach this stage
of rampant use, there should be technologies and feature improvements that
improve ease of use sparking adoption. All the same and despite human effort,
if Bitcoin becomes the first cryptocurrency used by machines, then its approval
could be more significant than that of other digital currencies.
Trust Is Important Beyond Bitcoin and Decentralization
No doubt, blockchain is now powering
decentralization and as we said, widespread use will guarantee speed,
censorship resistance and more importantly, better standards of living
especially for individuals in developing economies. Decentralization as a feature has led to an
increase in transparency and efficiency of processes, with the help of
Increasingly, people find themselves
trusting processes that operate via the blockchain. While this is a good thing,
there are some who believe trust should be engrained in other aspects of our
lives. Trust is a quality we should have even without decentralized systems to
keep us in check.
Parker Lewis tweeted about this
“Through Bitcoin, many of us have learned trustlessness in the money issuance function is critical. However, beyond money, trust is often a positive driving force, and everything doesn’t need to be decentralized with a blockchain.”
Behind these thoughts is Maine who
believes that the positive duty achieved from one man’s reliance on the word of
another man is one of the slowest conquests of present-day civilization.
Lewis is hopeful that trust can be
achieved in the world even without decentralizing every process. Achieving that
high level of confidence could take years to resolve. Thankfully, blockchain
technology is here to boost transparency within operations carried out in virtually
all sectors of our global economy. As an emerging sector that is evolving it
would be interesting to see the progress recorded over the next few years.
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