Why Companies are Experimenting With BTC Blockchain & They Won't Build Their Own

[LiteCoinGuy]

Why Companies are Experimenting With the Bitcoin Blockchain, and Why They Won't Build Their Own Blockchain

The bitcoin blockchain is the world's most cryptographically-secure ledger.

That is bigger than most realize.

If you are a business, what is the cost of licensing this technology.

Nothing!?

Imagine that from the point of view of businesses. Normally a tech like this would cost gigantic amounts of money to license. Only the largest companies could even think about using it.

And who controls it, some US company, right?

No one?

Even the NSA can't take your bitcoin? Your ledger transactions aren't conditional, can't be erased?

And how secure is the system--world-wide miners all paying for the transaction processing themselves, you pay them pennies per transaction at best? Incredible.

Now think about cost-benefit of trying to start a blockchain on your own. You lose out on the gigantic amount of processing power which is out there securing the existing blockchain--plus young blockchains are inordinately vulnerable blockchains.

Plus you'd have to actually start paying people to mine, probably people you hire to do so. Which means buying your own mining equipment and hiring and training competent people, not to mention setting up all sorts of disaster planning, hiring or building datacenters, dozens of new policies in place, and if the system should go down for any reason, you're the one on the hook.

So you've got to hire technical wizards to secure this thing, but the problem is, the best people in the world are already working on bitcoin, and they aren't going to come work for you.

Why do all that, spend gobs of money, and achieve only an inferior result? One that will also be quickly outdated.

If you build on the bitcoin blockchain, you gain the benefit of the developers thoughts and changes and diligence in keeping the system up and running and ensuring problems don't become systemic.

You'd pay major, major money to find people to do that for an alternate blockchain that didn't have a world-wide scope like bitcoin does.

If you close off your blockchain and make it private only among your affiliates, you lose a lot of flexibility and possibility as well. There's little to no point in having a non-public blockchain, you may as well build a private ledger.

It's the very public and open nature of the bitcoin blockchain that makes it what it is, that makes it a draw for the entire world.

It is the fact that no one controls bitcoin that causes many people to place trust in a protocol that otherwise would be difficult to trust.

Bitcoin is on its way to becoming as embedded in our world and life as TCP/IP / HTTP is today, and for similar reasons.


http://de.reddit.com/r/Bitcoin/comments/3ehoxq/why_companies_are_experimenting_with_the_bitcoin/

[Amph]

well it's obvious that it has to do with cutting cost, their first reason for embracing blockchain is exactly this, reduce cost and time, so what's the point of wasting resources in building a new less secure chain when there is already one ready to be used

[jeffthebaker]

What's to stop a company from just creating a BTC clone altcoin and premining every coin, and limiting nodes to their own servers? This wouldn't cost the millions of dollars implied, and a company like VISA or Mastercard, for example, would still maintain all the benefits they would be getting through the blockchain.

[turvarya]

What's to stop a company from just creating a BTC clone altcoin and premining every coin, and limiting nodes to their own servers? This wouldn't cost the millions of dollars implied, and a company like VISA or Mastercard, for example, would still maintain all the benefits they would be getting through the blockchain.

What would be the benefit of that? Why not use a normal database?
I think, a private blockchain would just be pretty expensive compared to other solutions.

[Harry Hood]

To the OP, your post is a direct copy from Reddit.

The comments on Reddit aren't fact, they are one person's opinion.

Companies won't gain (as much) from using the Bitcoin blockchain unless they want to deal in bitcoin. Most companies that are exploring the bitcoin technology are creating their own version of the blockchain for all sorts of reasons that make business better for the people.

Don't believe your own hype.

[Denker]

To the OP, your post is a direct copy from Reddit.

The comments on Reddit aren't fact, they are one person's opinion.

Companies won't gain (as much) from using the Bitcoin blockchain unless they want to deal in bitcoin. Most companies that are exploring the bitcoin technology are creating their own version of the blockchain for all sorts of reasons that make business better for the people.

Don't believe your own hype.

It seems you haven't understood OP's intention.
Yes this is direct from reddit. And you're right this is someone's opinion and no facts.
But we are here in the "Bitcoin Discussion" section.
Ever thought of that LiteCoinGuy brought that guy's thoughts here to start a discussion about that on bitcointalk as well??  

Jesus sometimes some people are just.....

[Amph]

What's to stop a company from just creating a BTC clone altcoin and premining every coin, and limiting nodes to their own servers? This wouldn't cost the millions of dollars implied, and a company like VISA or Mastercard, for example, would still maintain all the benefits they would be getting through the blockchain.

in fact it's what they are doing(at least what they want to do), but they should make this with infinite supply otherwise they can not do their dirty printing endless

they don't even need mining, they could do it with pos which is better for their business model, it would reset their cost to almost zero

[galbros]

I can see a use for an internal fork of bitcoin, but you're right it can't be totally internal.  It may help a company coordinate with external agents.  Not sure what the advantage over an internal database might be other than low costs, which others have pointed out.

Regardless, any attention to bitcoin and its technology is a good thing.  I find stories like this very encouraging.

[LiteCoinGuy]

To the OP, your post is a direct copy from Reddit.

The comments on Reddit aren't fact, they are one person's opinion.

Companies won't gain (as much) from using the Bitcoin blockchain unless they want to deal in bitcoin. Most companies that are exploring the bitcoin technology are creating their own version of the blockchain for all sorts of reasons that make business better for the people.

Don't believe your own hype.

It seems you haven't understood OP's intention.
Yes this is direct from reddit. And you're right this is someone's opinion and no facts.
But we are here in the "Bitcoin Discussion" section.
Ever thought of that LiteCoinGuy brought that guy's thoughts here to start a discussion about that on bitcointalk as well??  

Jesus sometimes some people are just.....

....stupid   ?

@Denker : Thx. 


"Harry Hood", you dont seem to understand the differences between an internal blockchain (like an intranet / database) and the BTC blockchain (like the internet).

of course these companies can create their own blockchains, but that is not a big deal at all.

[Outlander]

What's to stop a company from just creating a BTC clone altcoin and premining every coin, and limiting nodes to their own servers? This wouldn't cost the millions of dollars implied, and a company like VISA or Mastercard, for example, would still maintain all the benefits they would be getting through the blockchain.

Because VISA or Mastercard has mature network and are processing the most large amount of transactions in the world. Why do they need to concern about bitcoin now? Bitcoin can only include 7 transaction per second, cannot compare with their 45,000 transactions per second processing capability.

[Mickeyb]

OP, I don't know, I hope everything will be this easy and full of sense, but something inside of me tells me it won't be so easy and without a fight. Governments and banks will try to get their cut as they are getting their cuts since forever. Everything is money and profits and this hunger for profits is what scares me the most.

But once again, I hope it goes as smooth as possible.

[LiteCoinGuy]

OP, I don't know, I hope everything will be this easy and full of sense, but something inside of me tells me it won't be so easy and without a fight. Governments and banks will try to get their cut as they are getting their cuts since forever. Everything is money and profits and this hunger for profits is what scares me the most.

But once again, I hope it goes as smooth as possible.

nothing is smooth. bitcoin is and was drama. it will be like a rollercoaster