Bitcoin is known as a decentralized payment system that allows for the transfer of funds. Back in the day (when it was invented just over a decade ago), Bitcoin was touted as an alternate means of paying for services or buying goods.
Over time, it’s also turned into a popular investment with its explosive growth.
Whether an investment or currency, Bitcoins today fly across borders at nearly no cost to consumers. Bitcoin has served as an intriguing new technology for depository institutions, too.
So, what does Bitcoin have to do with your IT?
As it turns out, some people talk about “Bitcoin” when they really mean all kinds of cryptocurrency. And still others talk about cryptocurrency when really they mean the blockchain.
Keep reading to learn what Bitcoin (or cryptocurrency) and the blockchain both have to do with your IT.
Cryptocurrency and IT
Bitcoin (and all other crypto coins) are changing how the internet works. The novel invention of a totally digital form of cash has allowed apps and developers around the world to experiment with new monetization models.
The “big dogs” of the internet have built their empires on tracking and storing user data to later sell it to third parties. Facebook, Google and Apple have all come under fire for this. That’s now considered the “old way” of monetizing the internet.
The shift has come from the choice of making payments with Bitcoin, gaining users total anonymity (which breaks the previous monetization model of Facebook and the like).
Bitcoin is also helping push forward a future where the specs of a device aren’t as important when navigating apps and software, because the system resources can be automatically purchased with cryptocurrency.
When it comes to your IT, these changes probably won’t effect you this year, but in short time you’ll see a more ubiquitous shift as the result of cryptocurrency.
The Blockchain and IT
Perhaps even easier to understand than the impact of Bitcoin on IT is the effect of blockchain technology on IT.
Thirty years ago, our access to the World Wide Web was entirely through the whirring and spitting dial-up connections.
That was a big deal. In fact, web access changed the world.
The one technology since that is shaping up to be as impactful as the web is blockchain technology.
The blockchain is a decentralized network that validates information. So, for example, Bitcoin that are traded or used to purchase goods are validated on the blockchain before the transaction is complete.
The remarkable thing is that no one owns the blockchain. It’s completely decentralized, with industrial-speed computers around the globe processing encrypted equations to validate Bitcoin ownership.
This same blockchain technology—i.e., decentralized validation—has been applied to many other industries in extraordinary ways. Here are just a handful:
- Validating contract signatures
- Medical data management
- B2B payments
- NFT sales
- Music royalties
- International remittances
- Anti-money laundering tracking
- Supply chain and logistics systems
- Secure voting
Mainstream blockchain integration isn’t here yet, but it’s coming fast. It will be just as groundbreaking as the introduction of the web in the 1990s.
This will impact your IT, your business, and your personal life in big ways. Want to get ahead of it? Contact us to talk about Bitcoin and blockchain technology!