Bitcoin itself may last, or it may not. But in the future, it will probably be eclipsed by a whole set of different applications also using blockchain technology.

These will probably do far more than sending money around. Some think that they could even be the basis for a whole new paradigm in computing.

Sometimes called ‘cryptocurrency 2.0’ applications, these new services take the underlying characteristics of bitcoin and apply them to new things. They offer similar kinds of services that other applications have provided in the past, but they do away with the need for a central party, controlling everything. That has significant ramifications for any application where it’s dangerous or difficult to trust one particular entity to keep track of everything.

In a cryptocurrency 2.0 application, your storage could be spread around a peer to peer network, with each person running software that connects them to the network. It is the way that bitcoin functions, but instead of mining bitcoin, the software might encrypt and store a tiny part of your file.

That would make it difficult for any one entity to steal your files because they wouldn’t be one single place to go and get them. The software running the network would be able to reconstruct your files, but it would need your specific credentials to do it. Read more from thebalance.com…

thumbnail courtesy of thebalance.com