No doubt, Bitcoin is changing the global financial landscape. It successfully introduced a trustless peer-to-peer electronic cash system excluding third parties. Although Bitcoin evolution will continue, indicators now show that the network will serve machines more than they do humans in the near future.
Bitcoin as a Currency for Machines
In a tweet, unwriter noted that one of the biggest misunderstandings of Bitcoin is the assumption that it is created only for human use. But what enthusiasts don’t believe is that Bitcoin’s functionality extends beyond sating human needs.
Unwriter explains that because of superior data emanating from the Bitcoin mainnet, machines can be automated and via smart contracts, payments can be done via BTC, the native coin of the system.
Here’s what he tweeted: “Yes Bitcoin is a peer to peer electronic cash system. A cash system not just for humans but for machines. Every misunderstanding of Bitcoin comes from thinking Bitcoin is only for humans. The vast majority of Bitcoin usage will not be between humans. It will be machines.”
At the moment, BTC related transactions runs into millions of dollars according to data from Coinmarketcap. The only downfall is that these transactions are off-chain, manual and recorded by humans and thus susceptible to corruption. Most of operations are from Bitcoin traders, investors, stores that accept the cryptocurrency, payment to employees, and many others.
Even so, Unwriter envisions the future differently. He believes that Bitcoin will become the meta-net of the internet of things (IoT), with some adding that it would become the preferred machine-to-machine currency. With supporting facts, Underwriter argues that a cash system is not designed only to cater to humans but also machines.
Bitcoin growth and consequent use in the peer-to-peer financial landscape is encouraging and signals faith in trustless network. And it is because of this that many believe its role in global finance will only but increase in the future.
However, before we reach this stage of rampant use, there should be technologies and feature improvements that improve ease of use sparking adoption. All the same and despite human effort, if Bitcoin becomes the first cryptocurrency used by machines, then its approval could be more significant than that of other digital currencies.
Trust Is Important Beyond Bitcoin and Decentralization
No doubt, blockchain is now powering decentralization and as we said, widespread use will guarantee speed, censorship resistance and more importantly, better standards of living especially for individuals in developing economies. Decentralization as a feature has led to an increase in transparency and efficiency of processes, with the help of blockchain tech.
Increasingly, people find themselves trusting processes that operate via the blockchain. While this is a good thing, there are some who believe trust should be engrained in other aspects of our lives. Trust is a quality we should have even without decentralized systems to keep us in check.
Parker Lewis tweeted about this saying:
“Through Bitcoin, many of us have learned trustlessness in the money issuance function is critical. However, beyond money, trust is often a positive driving force, and everything doesn’t need to be decentralized with a blockchain.”
Behind these thoughts is Maine who believes that the positive duty achieved from one man’s reliance on the word of another man is one of the slowest conquests of present-day civilization.
Lewis is hopeful that trust can be achieved in the world even without decentralizing every process. Achieving that high level of confidence could take years to resolve. Thankfully, blockchain technology is here to boost transparency within operations carried out in virtually all sectors of our global economy. As an emerging sector that is evolving it would be interesting to see the progress recorded over the next few years.