It is hard to imagine a world where
smart phone technology is ubiquitous, and there are still individuals who do
not have access to adequate financial institutions. In these modern times there
are roughly six billion people with limited or no access to banking facilities.
Difficult to fathom, right? Sadly this is the truth for many people in
developing countries. Coupled with corruption, limited modes of transportation,
and high transaction fees, bank accounts are a luxury that many people cannot
afford. Enter Bitcoin into this equation and financial freedom is just the
beginning.
Bitcoin is not just money for the
internet; it is a programming language that allows for the decentralization of
any information system. As said by Andreas Antonopoulos (2014), "Bitcoin
is the internet of money." In order to understand this let's use the
analogy of the internet; which allows any individual admission to a global
communication and information network instantaneously. In this same way,
Bitcoin is allowing individuals' instant access to a free global financial
network. The implication of a decentralized financial network free from the
corruption of third party moderators is overwhelming. Ponder for a moment
introducing 6 billion potential consumers to the global marketplace. The
possibilities for economic growth and innovation are exponential. This exists
because Satoshi Nakamoto, the inventor of Bitcoin, chose to create open source software that gave all users equal say. The power of the Bitcoin
network is its users, which currently exceeds the combined computing power of
the top 600 super computers on Earth. This equates to a network, which is for
all intents of purposes, impenetrable. Essentially, each individual computer
acts as a voting node. These nodes vote on the validity of the current Bitcoin
equation, otherwise known as the block chain. In order for the block chain to
be verified, a majority of the voting nodes must corroborate if the equation is
done correctly. This process happens in nanoseconds, meaning not all voting
nodes will participate in every given block chain verification.
Bitcoin is primarily thought of in
the west as trendy, new technology and a means of accruing wealth. Recently,
the popularity for crypto-currencies has grown rapidly within investment
circles, hedge funds, and among the technologically inclined due to its rising
value. Though Bitcoin is utilized predominantly inside these aforementioned
groups, current buzz surrounding Bitcoin millionaires and the public hearings
in New York regarding future regulation have catapulted the currency into the
mainstream ( NPR ). However, limiting the
Bitcoin protocol to these previously mentioned industries is extremely short
sighted given the genius of Satoshi's underlying goal. Remember, the Bitcoin
protocol can be applied to any information system, such as the system of
voting. When applied to voting, there is no longer the need for a third party
organization to verify an election as this is done by each individual voting
node. This completely eliminates voter fraud and voting machine tampering.
Individuals would be able to vote from the comforts of their own homes, using
verifiable identification codes, through a transparent voting system.
We have seen that the Bitcoin
protocol not only has the power to shape the future of our global financial
network, but of our voting, our phones, and our cable television. Any system
that is based on an unbiased third party mediator can be replaced by
implementing the Bitcoin software. As the software is policed by all
participating members, the possibility of corruption, or hacking the system is
minuscule. Regardless of whether Bitcoin the currency ever blossoms into a
legitimate mainstream form of monetary transaction remains to be seen, however
the revolution in software that Nakamoto has unleashed has only just begun.
Source 