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November 29, 2017, 08:49:00 AM |
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Perhaps Bitcoin as a currency will die out in the future, but the blockchain using colored coins has a great future. Below is a short essay I wrote on the subject. The future of Blockchain - Colored Bitcoins Before Bitcoins and the blockchain technology it runs over was available, all records of transactions relied on trusting a 3rd party middlemen such as banks, exchanges, stockbrokers, lawyers, and signature of witnesses. Blockchain technology with the internet and its decentralized, distributed network of nodes called Bitcoin miners using encrypted data changed all that. The blockchain represents an open distributed ledger, and the Bitcoin miners are the ledger keepers. There are many ledger keepers keeping the same ledger and keeping check on each other that the ledger is not compromised. Trusting 3rd parties is no longer needed to make transactions and their certified records safe from theft, loss or forgery. At present, Bitcoins, representing electronic cash can be traded for products and services easily, safely, cheaply, quickly and conveniently by using an open source software and the internet, all without relying on banks. But Bitcoins are not limited to represent electronic cash. They can be uniquely marked or colored to represent any assets or contracts, and their transactions can be securely published on the blockchain, where they are safe from loss and forgery.
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