When asked about his thoughts on the block chain technology and crypto currency, Steve Wozniak replied that he liked how all the transactions were saved specially when it came to security and traceability and that was partly why many parties are interested in it. With bitcoins being the most well known cyber currency – and what actually brought all of this to our attention according to Wozniak – he became interested in them and went online to – unsuccessfully- try to buy some. He then acquired them at 700 dollars realizing that he was not making an investment (their price dropped right after although that has now changed): he just wanted to have them to understand how to buy and sell things in certain sites that used them, perhaps having the intuition that this idea was forward-looking.
The apple co-founder then realized that there were in fact a series of places (such as hotels and restaurants) that used bitcoins and that it was possible to track which of these were when travelling. This meant that this payment option was becoming increasingly popular. He believes that although it is not there yet, it is getting there. With the recent release of a ground-breaking blockchain-based initiative, it looks like the process could move ahead even faster. With crypto currency star-tups already holding ICO campaigns (initial coin offering) it could be said that the wheels are turning. But first, let’s take a look at how blockchains and bitcoins work and what makes them beneficial.
This type of technology has a crucial effect on how governance and business work and can potentially change the way we look at certain things, including trade, ownership and trust. The application of bitcoins and money is merely a single option of the former. Trade, to start with, has become a complex type of transaction that is only recorded in bookkeeping that is not accessible to the public. This is why we use mediators that approve our transactions and who we know as “Trusted Third Parties” (traditional banks, for instance). Through bitcoin software, it becomes possible to have a collective bookkeeping of transactions through Internet. And so, this information becomes public and we can all access it. That is the blockchain, which includes logged transactions with essential info regarding the transactions made. Bitcoin miners are in charge of verifying that the information linked to them is real. And so, it could be said that what blockchain enables is the access to a shared single source of truth.
The block chain era has arrived and it will certainly change the way we see and do things. With the potential of making our lives easier it makes sense to learn more about this technology and its crypto currency, as it will affect different aspects of our lives (how we travel, buy, invest). Decreasing bureaucracy and making the financial sector far more transparent, at this point we look forward to seeing what will banking in the blockchain era look like, with Bankera taking the lead. We can also say that Wozniak, who bought bitcoins at 700 dollars without the intention of making an investment but rather learning more about the way they work, might be happy to know that their current value is 3861.50 dollars. Unwillingly, he possibly invested in a future that is approaching quite fast.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.