Going forward we will start to open up and allow business use of the Bitcoin blockchain. Bitcoin scales, and we will be demonstrating this in the coming days as we first start running 128-MB blocks and we will move to remove the block cap altogether. In the coming years, we plan to support an unbounded blocksize and as many transactions as people are willing to send us.
In a couple of weeks at the CoinGeek conference, we will let you in on some of what we have been working on at nChain. It is not a method to create anonymous systems to help promote and create anarchy. Rather, we have been developing technologies to increase business efficiency, to open markets, and to allow trade.
The error in how many have come to see Bitcoin stems from the HODL fallacy and the concept of getting rich off the work of others. That is to buy and wait as others work to create value and no more. We will start to demonstrate how this does not matter and, in time, how we will stabilise the volatility of the system making a path for use as cash and far more.
To many in the “crypto” space the entire use of Bitcoin and alternative chains has been as a speculative asset. We are going to start to show a long-term path for miners, not exchanges and speculators, but those seeking to build the next-generation Internet of value.
The Bitcoin blockchain is a commodity ledger. It is a method to exchange value without the issue of double spending that has plagued all other attempts to create a digital currency. The fallacy is seeing Bitcoin as a road to short-term riches. The long-term road is pathed using commercial transactions.
Here, it is not the value of the coin that matters; in fact, if the value of Bitcoin is volatile, it does nothing to the use of Bitcoin as a commodity ledger. At scale, we expect the cost to a merchant for sending a simple marker and record transaction securely encoded to remain under $0.001 USD. Over time, this will be lower.
A more complex contract could be encoded for $0.05 USD.
The fact of all this is that it does not matter whether the merchant seeks to pay in USD, GBP, or Yuan. They are not seeking use as a purely speculation-based system, so the market of the transaction is sold as a commodity in their local currency.
We have already documented several 100s of inventions that have real-world value today. These are concepts and seeds of businesses that we will provide to developers seeking to extend the Bitcoin protocol on SV — not as a means to take down the state or anything along those lines, but simple and boring uses such as technological data plumbing. This will be tax invoices and contract-exchange platform — systems that allow a user to purchase an item in the local store, and have it recorded and available later for use as a tax record. It could even be automated to load into an accounting system.
The concepts for inventions in our portfolios and the associated inventions will be available to open the use of the Bitcoin blockchain globally.
These records would be stored in the public blockchain in a completely private manner and without loss. A miner will be paid for processing the transactions, and the merchant and user now have a system that is able to minimise fraud, loss, and alteration.
The reality is that an exchange would be able to occur for a cost lower than existing paper-based invoice and receipt systems.
Most importantly, as the cost is paid as it is used, the system is not subject to volatility. Merchants would pay in their local currency and not care if the transaction was more or less expensive in bitcoin to USD terms. The number of bitcoins required will fluctuate, but the costs to the merchant would be able to be stable.
So, what do we see as our market? The crypto community?
No, we see our market as the world. Any merchant in any country. We plan to open development of systems that will have billions of people using Bitcoin in the coming years, without even knowing that they are using Bitcoin. Basically, we seek to create a system that proves the ends which reflect how any good system should be — not one based on ideology and religious drive, but simple efficiency and value.
Interestingly, even with a dispute as we see today between ABC and SV no loss of transactions would have occurred on the SV chain. Our solutions and businesses deploying these would not even have to concern themselves with the ongoing “hash war”.
The system is that resilient.