As Bitcoin evolves, the experts expect that the technology that underlies the digital currency may soon spread into other online transactions. For instance, a mini-industry is forming to take advantage of the technology called blockchain. The digital technology used for Bitcoin transactions is can also make a wide variety of other Web transactions cheaper, faster and more secure.
The idea behind these digital technologies is to remove as much as possible people and their bureaucracies from creating contracts, the transference of money and other data. On all this type of transactions tracking ownership is an important aspect. For example, it may take several days for a payment to clear a bank. The same transaction’s time could be cut to 10 minutes by relying on blockchain’s specialized highly secure computer networks.
According to Adam Ludwin, chief executive of Bitcoin startup Chain Inc., people prefer to use the Internet to move digital things around because is low-cost, fast and transparent. This might be the explanation of the fact that Bitcoin-related startups were able to raise $375 million in the first half of 2015. This is about 11 percent more than the money raised in all of 2014, according to the investment tracking firm CB Insights.
The number of investments also rose significantly by 63 percent compared with last year’s first six months. Several venture funds are coming in the market focusing on alternative uses for blockchain. Big names such as Goldman Sachs and the Nasdaq stock market engage in a huge number of transactions each day. They both are looking to investing in blockchain experiments that can make their operations more efficient. Goldman Sachs, for instance, funded a startup using blockchain to track and protect U.S. dollars, instead of Bitcoins. Nasdaq is working with Chain
Originally appeared at: http://www.cruxialcio.com/investors-find-new-uses-bitcoin-underlying-technology-11024