Posted April 06, 2018 02:03:03When it comes to money, the idea of creating a new kind of currency to replace the traditional US dollar is nothing new.
But this is where blockchain technology has the potential to be a big winner for the future.
The idea of using a distributed ledger to create a digital currency, called blockchain, has been around for a while, but its only been around a few years now.
While some have tried it, others have failed to make much headway.
In an interview with CoinDesk, Mark Kleiman, the co-founder and CEO of the company that makes the Bitcoin blockchain, said that he expects the currency to come into the mainstream soon, and that this is why he thinks the new currency is so valuable.
“I think its a great technology, and I think its going to take off in a really big way in the next couple of years,” Kleiman said.
“It’s going to be really interesting to see what happens with it.”
Blockchain is a distributed database that records information about transactions, including who is behind what and when.
While it’s a distributed resource, there is no central point of control, making it difficult to control.
The database has a network effect, meaning transactions can be verified by anyone with access to the ledger.
Kleiman said that blockchain will have a massive impact on how we manage money, as it allows transactions to be recorded and shared without a third party, like a bank, needing to know where the money came from or who is issuing it.
Kleiniman said there are already hundreds of companies developing blockchain-based financial services, and it’s very easy to see how this technology could be used for other purposes.
“It will open up new kinds of commerce, but also it will open it up to the financial services sector to start making payments with bitcoin, and with other cryptocurrencies, and so on,” Kleimansays.
“You can see the potential here for new kinds and kinds of transactions to occur.”
For instance, if the blockchain network was to be used to pay for a trip, there would be no need for a bank or a middleman, and the entire transaction could be completed without the need for an intermediary.
“You don’t have to trust a third-party intermediary, which could lead to very bad outcomes, like if someone is buying an illegal drug on the blockchain,” Kleman said.
In addition to the potential for blockchain-related transactions to disrupt the financial industry, Kleiman believes it could also provide a new tool for governments to track who is in the country and what they are doing.
“If the blockchain becomes the way you send money, that is something we have to be careful about, because the first person to do it, who’s going, ‘oh, this is a really bad idea, and if you do this, I’m going to go and kill somebody, I might get a bad rap from law enforcement,'” Kleiman explained.
“That will probably be a bad thing, because then the bad guys will come to control that.”
The blockchain technology, though, isn’t limited to the finance industry.
Kleiman says it could help governments track and track down terrorists, as well as criminals and those who are trying to evade taxes.
“There are a lot of other applications that blockchain could help with, like tax evasion,” Kleima said.