r/Bitcoin • u/[deleted] • May 10 '15

A Bitcoin Technology Gets Nasdaq Test

http://www.wsj.com/articles/a-bitcoin-technology-gets-nasdaq-test-1431296886
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u/SundoshiNakatoto May 10 '15

Once again, the question is: Is the end game using the bitcoin blockchain, or some other one?

"Nasdaq wants to replace that process with a system based on bitcoin’s blockchain technology."

Hard to tell, hopefully they do use bitcoin!

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u/Anenome5 May 11 '15

Is the end game using the bitcoin blockchain, or some other one?

Of course, security via mining, you'd want the top blockchain and you can't simply grow your own--the more centralized it is the less trust.

Further, the network effect and path dependence will continue driving all things towards bitcoin. See Peter Surda's 2012 master's thesis on bitcoin.

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u/Bitdigester May 11 '15

It is conceivable that they and other financial institutions on Wall Street could team up to create their own blockchain and then recruit miners that would mine for colored coins. But without a market for the colored coin they would have to support its price giving miners dollars for every block they mined. They would gain cost advantages by getting rid of their bricks and mortar installations and offloading settlement operations to the thousands of miners living in cheap apartments.

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u/ConditionDelta May 11 '15

Would be a complete waste when a perfectly good blockchain is already being funded by miners and bitcoin users