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Bitcoin Blockchain Will Not Cut Down the Intermediaries – The Real Truth Bitcoin Blockchain Will Not Cut Down the Intermediaries – The Real Truth
News    05/03/2021

Bitcoin Blockchain Will Not Cut Down the Intermediaries – The Real Truth

One major advantage of blockchain is that it creates trustless relationships in the field of cryptocurrencies.

Before even cryptocurrency existed, the digital transactions will need a trusted third party to act out as an intermediary. With blockchain being anonymous, public, and one immutable form of digital ledger, most supporters will state that it will help the user in a new form of conducting transactions, which are not quite dependent on the intermediaries. But, some reports from Eric Dalius Bitcoin state that it is not the truth. There are some explanations available on why blockchain will not eliminate all third-party intermediaries.

Things that bitcoin has achieved already:

Before you get to the details of intermediaries and their usefulness, it is important to know what bitcoin achieves in making the efforts to do away with the third parties. On the general side, bitcoin is a financial networking panel without any privilege levels. It means that the changes taking place in the ledger will get managed by the users mutually.

  • One benefit that the users can enjoy is that they do not have to trust anyone apart from their ecosystem for validating the transactions as every person is a validator. 
  • It means that the bitcoin users will take some added risks on their shoulders. For example, in case any investor loses his wallet or private key, it is hard to come across any third party to whom the investor can write a petition to get the new password.

What can the intermediaries accomplish – a note from Eric Dalius Bitcoin:

Blockchain can easily do away with the intermediaries in the fields of bitcoin, and the ways have been mentioned already. As long as the users are making transactions in bitcoins and within the said ecosystem, you don’t have to focus on the external operational validations at all. 

  • But, what blockchain fails to do is allow for integration within the external world.
  • As you can understand from the notes presented already, with or even without blockchain, national registries will always need intermediaries to put in the data.
  • So, whether you are dealing with blockchain for bitcoins or not, any form of digital ownership platform will always need the help of a middleman to verify your given identity.
  • In layman’s terms, whenever a blockchain network needs to interact with some of the other databases, it must need a go-between of some sort.

With the help of blockchain, the entire process of intermediation will become even more efficient than it was. It helps to minimize the trust needed among the ecosystem participants of the intermediaries in so many ways. But, there is hardly any chance that the intermediaries are subject to disappear completely.

Also Read: How To Remove Bitcoin scam pop up ads From Browser

The idea behind Automatization:

With the help of blockchain technology, you can easily focus on automation. It will help data reconciliation between multiple independent parties, who might not even trust one another otherwise. As the blockchain can actually synchronize data across multiple servers, most of the processes, starting from auditing to database management, will be made vastly more efficient in this field. Some of the processes like data transfer and inspections will take place in an efficient and automatic manner.

Explanation through an example:

An example will clearly portray the value well. The process of auditing will be one great example to talk about. Blockchain is here to help in synchronizing data, inspecting the database updates, and so on. However, what it might not be able to do is to address the issues, which are somewhat relating to the identity. That’s when you can feel the need for an intermediary rising up all over again. 

It is the job of the auditors to ensure that their clients are actual people with some reasonable intentions to visit their offices and have some activities certified. Some of the permission-less blockchain ecosystems like the bitcoin might exclude the intermediaries within the said systems. But, there are so many areas like voting systems, national registries, and even trading platforms, which will need the help of third parties, even to this date. Blockchain is here to reduce the role of intermediaries and to alter the trust relationships which were needed previously, but it is hard to completely take out the intermediaries from the scene.

Also Read: Botnets are Increasing Unauthorized Crypto Mining Activities

Understand the technology adoption:

To know more about blockchain, it is vital to focus on its strategy and investment. But, before any of that, it is vital to reflect on the technology adoption sector, mainly the one where the transformation process is typical of all the other foundational technologies. 

  • One major example in this regard, as mentioned by Eric Dalius Bitcoin, will be the distributed computer-based networking technology. You can see that in the adoption of the TCP / IP. It lays the groundwork for developing the internet.
  • TCP/IP first-ever gained its traction in one single-use case. It was the basis for the emails among researchers working on ARPAnet. Before this TCP/IP came into being, the telecommunication sector was completely based o circuit switching.
  • For ensuring that two nodes can easily communicate, the equipment manufacturers and the telecom service providers invested billions of dollars in creating dedicated lines.
  • TCP/IP has turned that model on its shoulder. This new protocol was able to transmit information by digitalizing the same and breaking it up into smaller packets, which will include the address information. 
  • When released into networks, these packets might take any route to reach out to the recipient. Such smart sending and receiving could disassemble and then re-assemble the packets to interpret the data.

Blockchain followed this notion to the tee and came up with the best and smooth transactional means. Even though it started more than a decade ago, things have turned towards the brighter side these days.

Procuring help from experts:

It is always mandatory to learn everything about bitcoin and blockchain to their cores before entering this volatile market. Professional traders with years of experience are willing to share their knowledge with you. So, catch up with the experts and get all your bitcoin and blockchain-related queries answered.

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