Cryptocurrencies, and Bitcoin in particular, have been getting a lot of attention from just about every angle: regulation, governance, taxation, tech

Minimum Viable Block Chain

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2021-05-24 04:30:05

Cryptocurrencies, and Bitcoin in particular, have been getting a lot of attention from just about every angle: regulation, governance, taxation, technology, product innovation, and the list goes on. The very concept of a "peer-to-peer (decentralized) electronic cash system" turns many of our previously held assumptions about money and finance on their head.

That said, putting the digital currency aspects aside, an arguably even more interesting and far-reaching innovation is the underlying block chain technology. Regardless of what you think of Bitcoin, or its altcoin derivatives, as a currency and a store of value, behind the scenes they are all operating on the same basic block chain principles outlined by Satoshi Nakamoto:

The block chain is agnostic to any "currency". In fact, it can (and will) be adapted to power many other use cases. As a result, it pays to understand the how and the why behind the "minimum viable block chain":

Alice and Bob are stamp collectors. It's nothing serious, and they're mostly in it for the social aspects of meeting others, exchanging stories, and doing an occasional trade. If both parties see something they like, they negotiate right there and then and complete the swap. In other words, it's a simple barter system.

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