Aaron van Wirdum: Blockchain Set to Go Mainstream – Anchoring Could Very Well Be the Future of Bitcoin as a 2.0 Technology

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Dutch Bitcoin Journalist  Aaron van Wirdum from Bitcoin Magazine has written an excellent piece on Blockchain technology entering the Zeitgeist. Most interesting van Wirdum makes a strong case on anchoring (Merkle Trees) with some solid interviews and research – noting that anchoring could very well be the future of Bitcoin as a 2.0 technology. 

However he also points out that Bitcoin itself might never be the platform that’s used to record every single stock trade, or all the world’s data… But it could evolve to be a fundamental and secure base layer, on which more advanced solutions are constructed.

Bitcoin is being rediscovered as a building block, much like the IP layer of the internet itself.

This unique security proposition has opened the door to a new application of the original Bitcoin blockchain: anchoring. Rather than transmitting and processing all information, some of the newer blockchains and alternative data-layers do most of the work on their own chain or ledger, and simply tap into Bitcoin’s security without putting a big footprint into the system.

This is done using cryptographic tools called Merkle trees. Data – any type of data – can be scrambled and compressed into a hash: a seemingly random string of numbers. This hash can be much shorter than the original data, but is also impossible to unscramble, deeming it useless to anyone who doesn’t have the original data. But anyone who does have the original data can scramble that data in the exact same manner. If the hash turns out the same, it essentially verifies that the original hash was made using the same data.

A Merkle tree, then, consists of multiple hashes hashed together into a new hash, called a Merkle root. As such, hundreds of pieces of data can all be compressed into a Merkle root. And using the magic of cryptography, anyone who has any of the original data can use the Merkle root to check whether that original data is part of the Merkle tree.

Major companies such as Philips are experimenting with Bitcoin’s blockchain using Merkle trees. The electronics and health care giant recently established a partnership with Tierion, a blockchain startup that lets users create a verifiable record of any data, file, or business process on the Bitcoin blockchain.

Read article in full here.

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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