Bitcoin’s Blockchain Technology and Wall St.

Image from blog.blockchain.com

There are many new practical ways that bitcoin technology is being utilized in order to change the financial system for the better or for worse. Big money on Wall St. is and major finance companies are backing the research and development for new ways that bitcoin tech can be used and they are looking for ways that they can overcome and adapt to the predicted market turbulence that may occur once more people learn about bitcoin and how it can be used.

There is a whole new Industry beginning to mobilize in order to take find new ways to use technology known as blockchain, first developed for bitcoin, its main purpose was to help make it possible to complete multiple types of transactions all while making them faster, more cheap and secure. Major companies within this newly developing industry have simple objectives, to cut out the middle man and lower transactions costs.

Bitcoin and the technology that makes it possible is called blockchain. Blockchain is the computer program that records the transactions whenever bitcoin is traded from one account to another. Block chain is made so that all its transactions are recorded publicly even though lots of people who use bitcoin have profiles under the names of an alias. What blockchain technology does is  store those transactions on the user’s computer allowing everyone to see the records and have a saved copy of them, making it impossible  for users to manipulate the records and giving everything a since of accountability.

The trade of bitcoin is rapidly increasing and “the number of investments rose 63% compared with last year’s first six months.” This goes to show just how fast this currency is growing. “Big players including the Nasdaq stock market and Goldman Sachs, both of which engage in an unfathomable number of transactions each day, are investing in blockchain experiments.”

The uses of bitcoin’s blockchain technology are seemingly limitless. Goldman Sachs is funding a team to come up with new ways to use this blockchain for instance using it to look after and monitor U.S. dollars for protection. Also, two major organizations, Nasdaq and Chain, are comming together in a collaboration so they can form “blockchain-based marketplace” just for the purpose of trading shares of private companies.

Although my focus is mainly on the financial side and the implications Bitcoin tech has on Wall St., however Wall St. effects the world we live in everyday depending on how the big investment firms choose to allocate there money. This interest in bitcoin is relatively new and there is not enough people involved in making it more mainstream so Wall St. is funding bunch of start-ups that have big plans for bitcoin tech and blockchain programming.

One of these companies that are starting up in order to build new blockchain networks is Ambisafe Inc., who is “engaged in projects such as a tamper-proof national voting system, and blockchain Technology Group, a San Diego company working on a blockchain-based music streaming service, with rock-solid transaction records that could help artists recover royalty money.” Also, “Block26, a newly formed Los Angeles-based venture capital firm, last month announced a $450,000 investment in Airbitz,” a company that has made it known in its business plan that its goal is to make some type of network using blockchain in order to communicate from device to device.

Bitcoin currency itself has the potential to change the world of buying and spending as we know it and blockchain programming has the potential to change everything else.