Bitcoin blockchain technology will launch a real revolution

Bitcoin 's blockchain technology has launched a "real revolution" in how decentralized systems work, according to a report written by global equity economist Peter Dixon, which covers both bitcoin and the underlying blockchain technology.

Exploring the benefits and risks of the emerging technology, Dixon wrote: “Blockchain is a true revolution from a systems perspective. As such, it offers the potential, in theory, to eliminate many of the risks associated with traditional ledger systems.”

Because one of the biggest risk factors in the market – third parties – is removed due to the decentralized nature of blockchain, “there is no intermediary that introduces credit risk and liquidity risk, which is eliminated,” Dixon wrote.

The report touches on major aspects of Bitcoin, including its distributed network of transaction validators, or miners. In the end, Dixon concludes that the question of Bitcoin’s future success remains unanswered.

“To what extent Bitcoin will replace other currencies is an open question,” Dixon wrote. While it has become more widely accepted as a medium of exchange, the way it is used as a store of value depends largely on its stability.

He later went on to write that the limited supply of bitcoin, as well as the speculative nature of the bitcoin trading market, could hurt the digital currency in the long term — but the underlying blockchain technology could still see its applications.

But with the introduction of blockchain, the Bitcoin debate has sparked a real revolution,” Dixon concluded, adding:

“In the coming years, even if Bitcoin becomes a footnote in the history of money circulation, blockchain technology may still be with us, even if some of the current claims about it prove to be overhyped.”