excerpt:
Crypto Network Technology May Go Well Beyond Payments
The most recent Bitcoin software update allowed for meta data to be embedded in the block chain, which creates the potential for
entities to sit on top of the blockchain and utilize the protocol to facilitate the exchange of assets ranging from other crypto currencies,
financial securities, commodities, etc. Ultimately, we believe the protocol will be leveraged beyond financial assets and fulfill the role of
trusted intermediary in a variety of settings, including property, legal documents, escrow, sports betting, etc. We believe this
development will extend Bitcoin’s reach beyond early adopters to the mainstream public who either choose to utilize the network to due
to superior cost/efficiency or through an intermediary that chooses to operate their business on top of the block chain instead of
traditional rails.
Mastercoin, for example, aims to take advantage of these recent updates and operates as a distributed exchange that sits on top of the
blockchain. This development would enable any financial asset (bonds, stocks, commodities, etc.) to be exchanged across the bitcoin
network in the same way the Bitcoin currency is exchanged currently. In this way, the blockchain acts as a trusted intermediary.
