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February 07, 2016, 10:53:08 PM |
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This cryptocurrency concept has enabled many new digital currencies and structures to float in the virtual world, including Ethereum, a platform that will allow multiple cryptocurrencies to be exchanged. Ethereum will also allow creating and hosting apps (like file storage or instant messaging apps). Users can pay for usage in cryptocurrencies (like $1 per 100 MB file storage or $2 per year for using IM app beyond a year) or can earn equivalents by contributing to the platform (like developing a new app).
Today, Facebook (FB) allows advertisers to target its users specifically. Ebay (EBAY) offers a secure marketplace to enable buyer-seller interaction. Today both Facebook and Ebay are able to bank on (and profit from) such privately held restricted networks, accessible to and controlled only by them. Such companies are valuable because of their registered user bases (and associated information), which are held privately by them.
Imagine if a similar generic network opens up based on block chains, offering secure yet decentralized control. On such a network, a Facebook user can easily connect to an Ebay seller to buy a desired good. Effectively, both users are on the same block chain network, and are using Facebook and Ebay like apps on this network for their requirements. In this new world, sellers will no longer have supreme control based on their individual user bases. Such a decentralized protocol enables peer-to-peer transactions, secured by bitcoin and its underlying technology.
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