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Analyst: Blockchain is the Biggest Thing Since the Internet and Cryptocurrencies Are Just the First Generation of its Applications
Bitcoin and the Bitcoin Investment Trust (OTC: GBTC) have been two of the hottest investments on Wall Street in the past year. However, the true value of bitcoin may not be in the currency itself but rather in the blockchain technology on which bitcoin was built.
What Is Blockchain?
Blockchains are typically defined as digitized, decentralized public ledgers of cryptocurrency transactions. The blockchain is a public ledger of every transfer the bitcoin community makes, and many different people can make entries into that ledger.
Every node in the network is updating the ledger independently, and the most popular record automatically becomes the official record. In other words, there is no “master copy” on the blockchain. In fact, there are many independent copies of the same record, all of which are used to verify one another. This consensus verification is often touted as the reason why blockchain technology is so secure—there’s no single point of weakness.
Two Different Discussions
Bitcoin is built on a blockchain system, but the blockchain’s applications are not necessarily limited to cryptocurrencies. In that sense, bitcoin and blockchain are two separate investment ideas.
KeyBanc analyst Arvind Ramnani says cryptocurrencies are simply the first generation of blockchain applications.
Blockchain technology is now being applied to a wide range of other businesses, …
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