Blockchain & Startups
• Why Innovative Companies Are Using The Blockchain
Every financial institution in the world has some sort of internal R&D effort aimed at understanding how the Blockchain will effect their business.
• Why Companies Like Orange Silicon Valley Are Working With Private Blockchain Startups
“Although permission is restricted with a private blockchain, they are still decentralized, without a singular authority. The blockchain is used to establish trust between partners and to remove or reduce the role of a clearing house. Companies can create different assets, specify transaction speed, impose privacy requirements and decide who may take part. Shared between members of a consortium, private enterprise blockchains can be used to build trust and efficiency between partners.
Companies would prefer to do without some of the baggage of Bitcoin; for example, the high energy costs of mining. Private blockchains can be tailored for the specific use cases of enterprises and their partners. By analogy, the public internet benefited from the development of the intranets, their private counterpart, and vice versa.”
Public blockchains are for customer facing applications that formerly involved a trusted third party. Private blockchains are for use within a single entity, or within an industry consortium where members want to be transparent with each other, but there is no need for public transparency.
Don’t get lost in the scrum of competing blockchain protocols. Given the frenzy of attention in this area, today’s performance and security problems are transient. We are at a place similar to where client-server computing was in the 1990s, facing some growing pains, but about to take the world by storm.
• Bitcoin Or Ethereal, Which Blockchain Is Right For Your Startup?
Five years after Bitcoin’s release, prodigy Vitalik Buterin created Ethereum, the most notable of the second generation blockchains. Buterin approved of the presence of scripting features in Bitcoin but he saw that they were very limited. Ethereum provides a Turing complete computing environment in its blockchain, which is the computer scientist’s way of saying that it includes a full featured programming language. You can write a program in Solidity, the Python-like language of Ethereal, release it into the blockchain, and it’ll run on whatever Ethereum node is handy when conditions trigger its execution. That doesn’t sound like much, but it’s the foundation of workable smart contracts, the thing that enabled the creation of The DAO, and which will permit all sorts of financial innovation going forward. While this can theoretically be done on the Bitcoin blockchain, smart contracts are far more streamlined on Ethereal, which was built specifically for this use case.
#bitcoin #blockchain #ethereal #ethereum #The_DAO #DAO #Bitfinex