Business At The Speed Of Thought
One of the most underrated, overlooked promises of digital money, is the esteemed ideal of sending money as easily as sending email. With the current third party infrastructure of today, this is possible, yet limitations exist on larger transactions. Further, all payments must first go through a series of checkpoints before being approved. Although peer-to-peer money is still in its infancy, direct payments which require no third party and are confirmed near instantaneously are a tantalizing prospect. The increase in the velocity of money which would accompany this type of infrastructure would be accelerate the velocity of money to a point where it is conceivable that business would be conducted at the speed of thought.
New Phase Of Growth
As bitcoin continues to leave its roots as a monetary experiment and enter a new phase of growth, it will facilitate a velocity of money which is frictionless, peer-to-peer, and near instantaneous. Such an increase in the velocity of money which digital cryptocurrencies promise, could be a catalyst for growth in the 21st century as we see developing nations leapfrog traditional banking infrastructure and move directly to a bitcoin-enabled financial paradigm. In this scenario, the bitcoin blockchain would serve as a sort of “cyber bank account” with cryptocurrency technology acting as the engine of growth in stagnant economies which have a record of tenuous currency stability.
Scaling the bitcoin network to accommodate the next wave of adoption and business use remains a difficult challenge. Two of the potential solutions which we intend to be hearing more about in the coming years are the lightning network and bitcoin sidechains. The Lightning Network proposes that instead of using the main blockchain to record each and every individual transaction, it could instead be used as a routing circuitry where groups of transactions would be intermittently verified. Sidechains on the other hand would allow digital assets to be transferred between interoperating blockchain networks linked by a cryptographic 2-way peg.
If private property empowers the individual, then it follows that no reliance on 3rd parties also empowers the individual. When an individual has the absolute ability to conduct on their own accord, they are empowered. Analog money on the otherhand, facilitate a sluggish, fragmented environment for the movement of money.
Truly, the ability of bitcoin to infuse the velocity of money with a digital-first settlement system could be one of the most underrated, transformative processes of the global economy in the years ahead. Bitcoin already allows individuals full capability of transacting on their own behalf. However, when scaling solutions are implemented which allow billions of transactions to be made per second we will see bitcoin serve as a catalyst for growth as it continues to mature.
Money wants to be free. Bitcoin will allow it to move at the speed of thought.
The blueprints for scaling the bitcoin are beginning to emerge and the Lightning Network may prove to be the...
Ethereum today is where bitcoin was in 2010 – raw infrastructure, lack of developers, and plenty of skeptics.
The financial landscape in developing economies such as Africa is well positioned to leapfrog traditional banking and move directly...