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ThreeD Capital Inc. $ – Will 2020 Be The Year Of Enterprise #Bitcoin? #Ethereum $ $ $

Posted by AGORACOM-JC at 3:58 PM on Tuesday, December 17th, 2019

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Will 2020 Be The Year Of Enterprise Bitcoin?

  • Bitcoin is the most popular digital asset in the institutional trading world as it has the best trading options available, both spot and derivatives, proven track record with the longest history and availability of data.
  • This made some of the largest financial services institutions highly interested and in 2019 we saw the birth of several bitcoin products like Bakkt’s physically delivered bitcoin futures, Fidelity Digital Assets bitcoin custody solution and TD Ameritrade’s trading offerings.

Biser Dimitrov

It also the case for the large enterprises looking at blockchain as technology and wanting to innovate using easier payments over fast and secure transaction networks and processes built around smart contracts? Can they use the bitcoin blockchain as a foundation and place their middleware stack and end-user decentralized Web 3 and decentralized finance (DeFi) applications on top?

So far the majority of enterprise-focused blockchain development has been done on permissioned and private blockchain protocols like Hyperledger Fabric and R3’s Corda. This is mostly due to the fact that they offer sufficient privacy, scalability and transaction finality guarantees. Compared to them, development on top of the bitcoin blockchain was not seriously considered until recently when in May, Microsoft announced their permissionless, Decentralized Identifier (DID) network called ION running exclusively on top of the bitcoin blockchain. That triggered a shift in the sentiment that developers and enterprises should also consider bitcoin as a potential layer for enterprise blockchain development. For example, companies like Bitfury are already making significant progress with enterprise-tailored blockchain offerings like blockchain as a service (BaaS) using bitcoin as a base layer.

Let’s review how bitcoin stacks up as an enterprise-ready development platform. According to a recent Ernst & Young study among decision makers across the U.S., Europe and Asia, the major reasons to consider blockchain in general are:

· Preservation of data integrity – In this area bitcoin is the absolute winner as the most trusted and secure public blockchain. The bitcoin blockchain is currently secured by 97 quintillion hashes per second, or EH/s. Data integrity is priority number one for the maintainers of the bitcoin blockchain and they are very restrictive about any new feature that can introduce security bugs and potentially compromise the integrity of the protocol. The accuracy and consistency of the data can be easily observed and analyzed by simple blockchain explorers as well as by using surveillance tools like Elliptic, Elementus and Chainalysis.

· Ability to build new revenue/business models – Bitcoin currently has a $128 billion liquid market cap so building new models on top of it can unlock new significant revenue channels. Furthermore, the increased adoption of Layer 2 technology like the Lightning Network, which operate via channels and enable cheap and fast payments, will enable new business processes and ways to revenue.

· Increased operational efficiency – Since 2010, when certain opcodes were taken out of the core protocol, smart contracts were considered taboo in bitcoin. Lately, with the development of Blockstream’s Liquid and the new RSK framework, Schnorr signatures and Taproot will make smart contracts–like executions possible via sidechains.


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