Juniper Research has found in their most recent study that in the first six months of 2016, the total value of bitcoin investments and Venture Capital blockchain came to the sum of $290 million. Even though there were over 30 startup companies involved that received business funding from venture capitalists during that period of time, more than 33% of all the investment funds were awarded to three major corporations. The renowned bitcoin-based payment merchant, Circle, raised $60 million in the beginning of the year. The sidechain developer, Blockstream, secured and acquired $55 million in funding. The distributed ledger solutions provider, Digital Asset Holdings, was allocated $52 million in business funding at the start of the fiscal year.
Chain black chain refers to a type of technological database that was first created in order to underpin the virtual currency bitcoins. Instead of having one main database that identifies the owners of bitcoins, black chains permit networks that have identical and connected databases to communicate with each other and update the individual databases simultaneously.
In each occurrence where a bitcoin owner desires to alter or add to any information within the blood chain or shared database, the overwhelming majority of the network members must approve and sign off on the transaction. Trust is built into the system because all members are notified and involved in each transaction. This system also eliminates the need for a middleman to handle and process the transactions. Without a middleman expecting to be compensated for their services, transactional costs are reduce. Theoretically, a reduction of error should also be experienced since all members participate in the approval of the transactions.
The original bit coin block chain is used to keep record of all bitcoins transactions. Even still, the database could also be used to record any instances that involve a bit coin transaction. Online platforms are in developments in order to centralize various types of records, including those that pertain to shares, diamonds and art.
Banks and other financial institutions spend considerable amounts of money attempting to gain an understanding of how to use the protocol, spending the money on proof of concepts utilizing the technology, joining forces with industry wide corporations and issuing an insurmountable amount of white papers. While the report by Juniper claims that financial institutions are becoming increasingly active in the black chain and bit coin investment sector, one of Juniper’s advisors, Dr. Windsor Holden, warns that “while blockchain technology offers the potential for increased speed, transparency, and security across an array of verticals, there has to be rigorous and robust road testing in each unique use case before any decision is taken.”
The Future of Blockchain: Bitcoin, Remittance, ID Verification & Smart Contracts 2016-2021 report Discovered that there has been an increase in the enlarging of impressive black chain deployments that range from identification to asset management. As the black chain technology continues to be embraced by the banking sector, the report exposed the banking sectors approach with the various banks that have embraced the Ripple blockchain protocol. The Ripple network is composed of 12 of the top 50 global banks such as UniCredit, CIBC, Santander, ATB Financial, ReiseBank and UBS.
With the banking sector and bracing black chain comes with notable advantages. Using black chain based systems means that the risk of error will inevitably become reduced while the amount of time required to check for errors in various circumstances such as transaction settlements is also minimized. In addition to that, the researcher proclaims that for remittances that takes place across borders, black chain technology had the capabilities of permitting new participants to execute their service for a fraction of the original cost.
Even with the reinforcing news derived from the research, it was also reported the caution of potential bugs and flaws that are likely to be visible by users of the black chain if smart contracts are employed on them. A perfect example of a union that was exploited by an outside company which discovered a flaw is the DAO example where they ultimately experienced an $80 million misappropriation of virtual currency. These type of occurrences are discouraging nonetheless, even though they did not deter networks from participating in the blockchains.