All Aboard The Bitcoin Bandwagon: Why Engineering is Joining The Party
Engineering and the financial sector may not have the strongest connections in the world, but with Bitcoin reaching record highs in 2017, the race is on to see how the two can come closer together. For those with a keen on eye on the movements of currency, the first quarter of 2017 has been bullish for the leading cryptocurrency, Bitcoin. Despite having its ups and downs since it was created in 2009, the early part of the year saw it break records and even surpass the price of gold. At one time in its history, a single bitcoin was worth less than £5. Today, through a combination of increased usage, improved technology and better understanding, a single bitcoin is worth more than £1,000. In fact, on March 2, the price reached a record high of $1,270/£1,035 on some trading platforms. Part of the reason for the latest surge in price is the pending decision by the Winklevoss twins with regards to bitcoin becoming an ETF (exchange traded fund). Although the jury is still out on whether this will happen, the mere possibility that it could be traded like other stocks and assets has sent the price skyward in recent months. However, to get to the point where the financial traders and regulators are considering it a potential commodity, something must have clicked. Increased Usage Gives Bitcoin a Boost “Stock Photography – Canadian Coins” (CC BY 2.0) by MorboKat One undeniable reason for the growth in popularity of the virtual currency is its increased usage. Today, even those without an idea of the technology behind it, can use bitcoins to pay for all manner of goods and services. From flights and holidays to online gaming entertainment, bitcoin payments are becoming mainstream online. For example, people who want to play online casino games such as blackjack and roulette can now use Bitcoin. When they go to BitCasino.io, they’ll have the ability to deposit, play and withdraw funds in BTC and nothing else. For individuals, playing games like Satoshi Baccarat, this is great because it eliminates issues such as currency conversion charges and, importantly, helps protect their identity. Similarly, gamers on the other side of the gaming spectrum can now pay for Xbox Live credits via Microsoft. Beyond gaming, online retailers like Overstock give consumers the ability to buy everything from electronics and computers using the cryptocurrency. As if that wasn’t enough, Virgin Galactic, Baltic Air and even British Airways will all take you on a flight to faraway destinations without you needing to use your pounds or pence. Blockchain Holds the Key to Industry Advances “Worksheets” (CC BY 2.0) by ingeniarius’ However, it’s not simply the proliferation of bitcoin payments that’s helped the currency. Blockchain technology, the technology powering bitcoin transactions, is also finding its way into industries and that’s where engineering comes in. Blockchain, in essence, is an online ledger or distributed database that maintains an ever-growing list of blocks. Each block written into ledger is encrypted and time stamped which basically makes it resistant to change. This ability to process and store data in a more efficient and secure way is where engineering could benefit. According to the Lloyd’s Register Foundation programme for data-centric engineering, data considerations are at the core of engineering design and blockchain technology could help improve this process. Indeed, during a meeting of minds at The Alan Turing Institute back in January 2017, the idea of using blockchain technology was floated. Focusing specifically on data-centric engineering and its two core assets – the physical and the digital – the workshop discussed how assurance between these two outputs could be enhanced. Using blockchain technology to better process the latter could result in enhanced performances from the former. Although the adoption of blockchain technology by the engineering world is still in its early stages, the cogs are starting to turn. However, just as the medical world and even the music industry have started exploring blockchain, it now seems as though engineering is firmly on the bitcoin and blockchain bandwagon. Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
Reengineering the Future: Why Bitcoin is Reshaping More than Money
In the last decade we’ve seen innovations and inventions come and go. The Internet of Things and home hubs, “Smart” XYZ and the Tesla are just some of the developments that have reshaped the way we live. However, as useful and impressive as they are, none have or are likely to have as big of an influence as Bitcoin. Originally developed in 2009 by an unknown programmer known only as Satoshi Nakamoto, Bitcoin is basically a monetary system that’s manufactured, transferred and stored online. Through a series of complex equations and a network of servers and users, the peer-to-peer system is able to survive and function without the need for outside help. Bitcoin Important for Businesses and Consumers “Bitcoin Magazine at Barnes & Nobles” (CC BY-SA 2.0) by zcopley Why is that important? Well, from an ideological perspective, it means the Bitcoin isn’t controlled by a government like regular currencies and, therefore, users can trade it freely across borders. From a technical perspective, it means that the system powering Bitcoin has to be smart and that’s what’s really got tech fans interested in recent years. When Bitcoin was initially launched, many fans thought it would change the way we pay and completely replace standard currencies. In some way, that has happened. For instance, online gamers can now enjoy their favourite activities without using their native currency. At VegasCasino, a new user can sign up, make a deposit and hit the play now button on something like Satoshi’s Secret slot or European Roulette and only use Bitcoin. By linking with Bitcoin exchanges such as Cubits.com, VegasCasino has made it possible for players to use their debit card as a means of depositing and playing in Bitcoin. Similarly, Xbox Live players can now purchase in-game credits, add-ons and upgrades through the Microsoft store. By logging into their account, a player can go through the purchase process in the usual way, but instead of choosing pounds, dollars or euros, they can pay in Bitcoin. Thanks to this gradual adoption of Bitcoin by major businesses, the value of a single coin has risen over the years. However, the thing that’s really made the cryptocurrency’s value breach the $975 mark in the first quarter of 2017 is the blockchain technology powering the system. In short, a single Bitcoin is manufactured through a process known as mining which is basically a series of servers trying to solve a complex equation. Bitcoin Gives Blockchain to the World “Please Keep Door Locked and Students Sup” (CC BY 2.0) by stevendepolo Once a server has processed and “solved” the equation, it gets rewarded with a Bitcoin. This coin is then logged by something known as the blockchain. Then, at every point the coin is transferred, sold or broken down, the information is recorded by the blockchain. In essence, the blockchain is a virtual ledger that records each transaction in a coded block that can be viewed but not modified. This process happens in real time and is, therefore, used to verify a Bitcoin transaction. Since discovering the effectiveness of the blockchain, tech forms around the world have been looking at its potential applications. Today, every industry from healthcare to music is looking to harness the power of the blockchain. Why? Well, in a world where we live so much of our lives online, the ability to instantly verify and record each process and then store it in a coded block that can’t be altered is invaluable. This dynamic would dramatically reduce the risk of security leaks and fraud. For example, if a healthcare company was to use blockchain to store patient records, it would mean that they could be viewed by the necessary people but not tampered with. Moreover, any attempt to steal someone’s records would be flagged up immediately, which would allow security experts to shut it down. Essentially, blockchain is the key to a more efficient, secure online ecosystem and that, in a nutshell, is why Bitcoin is the most significant innovation of the last decade. Although it’s still early days, the next decade will see blockchain become an integral part of existing and new technology across a range of industries. Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
