Blockchains are set to go mainstream. As opposed to bitcoin – the currency – the underlying blockchain technology is embraced by prominent companies, banks, and even governments. A brand new industry is emerging based on this technological advancement that allows multiple entities to agree on a single version of a database with no need for a trusted third party.
However, much of this blockchain industry does not actually use Bitcoin’s blockchain. Rather, several startups are building various types of blockchains, or shared-ledger technology that uses some of Blockchain’s efficiencies. There is a simple reason for this strategy: Bitcoin’s architecture is limiting in scope.
However, some properties of Bitcoin’s blockchain are unmatched; it is, by far, the most secure open and decentralized ledger out there. That’s why a new wave of blockchain-startups, including companies such as Factom, Tierion and DocuSign, is now seeking to marry the best of both worlds.
They use Bitcoin as an anchoring technology, used to secure alternative chains and data layers.
Peter Kirby is the CEO of Factom, a well-known blockchain startup which is building a data layer on top