Blockchain: Moving Beyond Bitcoin into a Digitalized World

Abstract

Little over a decade has passed since Blockchain gave birth to its prodigy Bitcoin, but Bitcoin despite all the hype (which was referred to as “big bang” by many) failed to become a simple (stable) global crypto-currency for everyday life to enable users worldwide to purchase products/services online, transfer money and conduct business with both individuals and entities within seconds without going through access related issues and financial burden of high transactional costs. Blockchain’s close link to Bitcoin has been rather negative on the revolutionary technology to live its true potential, but now it is time for blockchain to move beyond Bitcoin. Blockchain distributed ledger technology (DLT) can be used in many areas that are traditionally under government control. In fact, numerous tools and applications we are so accustomed to using or seeing around could be decentralized via blockchain to create a paperless digitalized world; as a side goal, this could possibly help reduce global warming as well. Internet, marketing (advertisement), asset management, traffic control, utilities (electric, gas, and water) and social security (retirement benefits) can all be decentralized through blockchain to provide more efficient and unrestricted access to personal and public records. Blockchain possesses immense opportunities and has the capacity to take unimaginable forms in the future, but only if regulators, law makers, central banks and other branches of governments allow it to happen.

Keywords: Blockchain; Decentralized; Permissionless; Cryptocurrency; Bitcoin

JEL Classification: O31, G12, G21, E42, E51, D40, C40, C52