The technology behind Bitcoin could touch every transaction you ever make
Bitcoin was hatched as an act of defiance. Unleashed in the wake of the Great Recession, the cryptocurrency was touted by its early champions as an antidote to the inequities and corruption of the traditional financial system. They cherished the belief that as this parallel currency took off, it would compete with and ultimately dismantle the institutions that had brought about the crisis. Bitcoin’s unofficial catchphrase, “In cryptography we trust,” left no doubt about who was to blame: It was the middlemen, the bankers, the “trusted” third parties who actually couldn’t be trusted. These humans simply got in the way of other humans, skimming profits and complicating transactions.
Bitcoin sought to replace the services provided by these intermediaries with cryptography and code. When you use a check to pay your mortgage, a series of agreements occur in the background between your financial institution and others, enabling money to go from your account to someone else’s. Your bank can vouch that your money is good because it keeps records indicating where every penny in your account came from, and when.
Source/More: Blockchains: How They Work and Why They’ll Change the World – IEEE Spectrum
