Mercator Advisory Group is an established advisory and consultancy firm in the financial industry. The specialised payment and banking analysis group began studying blockchain technology in early 2014, releasing it’s first research note shortly after,’Global Digital Currency Regulations: Divergent Paths’.
In the latest note Tim Sloane, Mercator Advisory Group VP of Payments Innovation, provides an overview of what Mercator terms “the Bitcoin economy,” which links the attributes of value, transactions, fees, and Bitcoin miners in a balanced choreography.
“The global payments industry has been taken aback by the rise of the new payment technology represented by bitcoin and other digital currencies, which at its core has the potential to radically change the paradigm in which electronic payments are handled.”
The 12 page note include 3 exhibits, and provides the group’s definition of sidechains, the identification of technological mechanisms for their implementation, and new approaches to sidechains that have been documented, “with identification of where they will likely add significant value and where they continue to risk breaking the Bitcoin economic model.”
“While there have been misguided statements suggesting that Bitcoin is the next Internet, this would be