Blockchains and Banks

The underlying technology that enables Bitcoin to work is called the Blockchain. It is basically a verification system used to facilitate and authenticate digital transactions, these transactions are permanent and cannot be altered. Medium to large size banks are beginning to catch on to this technology and implement it in their own infrastructures. This would render a lot of transaction-verification jobs obsolete, while making the transfer of money much faster, safer and cheaper (since it’s an automated process).

In Mr. Robot a group of hackers bring the economy to its knees by wiping out a majority of the debt (probably not very realistic). A new digital currency is then pushed on to the public called ECoin. This is interesting because if the public were to adopt another currency other than the US Dollar (like some people are with Bitcoin) it could prevent things like currency manipulation, counterfeiting, and it could also save people from dealing with currency exchange rates. The total number of Bitcoins is capped at 21 million. There will only ever be 21 million Bitcoins in existence forever. It is difficult to imagine a scenario in which everyone uses this currency when most of the coins are already mined and in circulation. The early adopters of the coin were given an extraordinary advantage (and they should be well compensated for being the pioneers of the technology).

Blockchain technology can also be used in the stock market, for tracking digital ownership of certain items, file storage, and even voting. Imagine a voting system that can not be hacked. Every single vote is verifiable and tamper-proof. This is a technology that is still in its infancy and it’s difficult to predict how it will be used. We are beginning to see big names like Amazon, Overstock, Newegg and many others accept Bitcoin – a sign of things to come. Once the big players start accepting it, others will follow suit.

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