Here is a quick breakdown from the chapter "Dumb Networks, Innovation, and the Festival of the Commons" from the book, The Internet of Money, by Andreas M. Antonopoulos.
Bitcoin is a currency. Bitcoin is a network. Bitcoin is a technology. And you can't separate these things. A consensus network that bases its value on currency does not work without the currency. You can't just do the blockchain without a valuable currency behind it, and the currency doesn't work without the network. Bitcoin is both. Bitcoin is a borderless currency that is fungible, fast, and secure.
Bitcoin is a dumb network supporting really smart devices, and that is an incredibly powerful concept because Bitcoin pushes all of the intelligence to the edge. It doesn't care if the Bitcoin address is the address of a multimillionaire, the address of a central bank, the address of a smart contract, the address of a device, or the address of a human. It doesn't know. It doesn't care if the transaction is carrying lots of money or not much money at all. It doesn't care if the address is in New York or England. It doesn't know, it doesn't care.
Bitcoin moves money from one address to another based on a simple locking script. And that means that if you want to build a new application on top of Bitcoin, you can upgrade the devices and you can build an application. You don't need to ask for anyone's permission to innovate. Write the app, launch it on your endpoint, and Bitcoin will route it, because Bitcoin is a dumb network.
That is the power of innovation on the internet. It's innovation without permission. It's innovation without central approval. It's innovation without a broad network upgrade. And that means Bitcoin is not a specific financial network. It's not a financial network for large transactions or small transactions, fast transactions or slow transactions. It's whatever you want to use it for, based upon what you choose to do at the endpoint.
Compare that to the current banking system. The current banking system is built around very smart networks, absolutely and tightly controlled to deliver very specific applications to very dumb endpoints. Even with your most sophisticated online banking, all you can do with your bank is access some HTML that delivers a set of services that they decided they were going to give you. You get no APIs, no ability to run additional applications, no ability to upgrade or innovate or change anything unless the entire network changes to support your new application. Bitcoin will win over these centralized, closed networks of the past because Bitcoin is open source, open standard, and open network.
Bitcoin is a festival of the commons. This means that the innovation of Bitcoin enriches everyone in the network via a synergy effect where each company that invests in this amazing technology makes it better for everybody else. People ask me, "Well, what happens if Goldman Sachs builds GoldmanSachsCoin?" I say, let them build it. If it's really open and decentralized, they just proved the whole point of this and we can all go home declaring victory. If it's closed and doesn't allow open innovation, it will become stagnant in just a few months while we continue accelerating ahead with more and more innovation feeding off each others invention.
You cannot stop this. A dumb network that puts all of the intelligence and innovation at the edge so that we can innovate without asking anyone's permission, and we can participate in this incredible festival of the commons.
Thank you.
i hold iop because it has good future
Yes it does
The ultimate free market technology. It will only get better. Bitcoin will not fail because those financially, physically, and emotionally involved in its survival will not allow it.
Well said!
good topic @pbgreenpoint. Thanks for sharing.i like your post and following.
Cool, thanks!
Really Great Information!
Thanks for the support!
Resteemed!
Thanks bro. I started following you.
Bitcoin is the internet of money What a great statement that is :)
Yes it is!
best post in the recent times great things to read :)
Awesome!
great information and talking in crypto-news.
Thanks
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