Bitcoin: It’s Valuable And Increasing Exponentially As A Unit Of Trade
While they are likely to rise in popularity because they are cause-related, smaller tokens need to move towards the ability to convert on exchanges. And, then eventually, they might get enough traction where people and companies will want to take them as a direct payment.
You can find more great information like this at https://exoangels.com
If you are imagining, managing, or building a creator business or community to be more #futurproof, we invite you to enjoy this article and accompanying podcast highlighting:
* Bitcoin at its core is a ‘trust protocol’
* Bitcoin is crypto’s ‘reserve currency’
* What is the Lightning Network, and why is it so important to the crypto industry?
* How will smaller crypto’s – like the ExO Token – interact with bigger, more mainstream cryptocurrencies?
* Very soon = the estimated timeframe for a true hybrid traditional-digital capital market
* Is 600 billion a fair estimate on the value of ‘trust’ on the internet?
* One way businesses and startups can send and receive global crypto payments instantly and cheaply
Bitcoin at its core is a ‘trust protocol
If we are talking about Bitcoin and crypto, one of the fundamental questions you really have to ask is…what is it?
The usual answers are: “It’s a payment network.” “It’s a value store.” “It’s money.” “It’s digital money for the digital age.” It is all of those things, but actually, those answers are incomplete.
What it is at its very core is a trust protocol, and it solves a computer problem of how do you do trust on the internet without a third-party intermediary, and then the network handles trust.
When you think of it as a trust protocol first, you can start to wrap your head around where it’s going to go as the evolution of the internet.
The internet is made up of seven technology leaders and they call this the OSI technology stack.
What it represents is quite literally the plumbing of the internet – it’s how the internet works – from layer one, the outlet on the wall, and layer seven, websites, and all the stuff in between – that developed over time to make standard internet functions work.
Bitcoin to other cryptocurrencies is like ‘reserve currency’ to all the world’s global monetary currencies.
Bitcoin is the first and the anchor of the industry. It had a weird kind of birth where no foundation established it – it just morphed into itself, so there’s really no central head to it. It is truly decentralized. While other tokens are for specific projects, utilities, validations, etc., bitcoin is the purest one, and it is the one that represents native digital currency for the internet age.
People new to the crypto space can look at Bitcoin first. There are a few exchange platforms – such as netcoins.ca – where you can open an account, buy a little bit of Bitcoin, get into it, slowly, read a lot about it to understand what it is.
What is the Lightning Network, and why is it so important to the crypto industry?
The lightning network is called a layer two solution. What does that mean?
The internet has been scaled up to multiple layers of technology. Bitcoin follows the same philosophy where there is the base layer, which is really secure – where you get your wallet and buy your Bitcoin.
And, it might take a few minutes for the transaction to complete. Layer two solution lightning network runs on top of it and interacts with layer one. This ultimately solves Bitcoin speed problems.
So how does it work? It works very similarly to how the internet works. So what you have is a series of mesh networks, like the internet. You have a series of nodes. Nodes are just simply computers, servers. And on those servers, you’re running the lightning network open-source software, which is open source – anyone can use it, anybody can fork it, it’s part of the internet.
Within that software on the lightning network, you can open up a payment channel to exchange with other people all over the world – routing nodes connected to other nodes send a transaction, and it might go through eight or nine hops until it reaches its final destination. Lightning Network provides the ability to do millions of transactions a second, enabling small purchases, rapid purchases, and micro-purchases [worldwide].
Plus, you can’t get away from the Lightning Network if you’re building out tech stuff using payments, anti-spam security, and communications.
It’s what the next generation wants; and, it’s morphing around the world at a very increasing rate.
Whether you deal with it today, or sometime in the future – you’re going to have to – it’s going to cross your path and it’s coming like a freight train. Avoiding it is like trying to not use the internet back in the late nineties. Eventually, you had to use it.
Read more http://economy.openexo.com