Cryptocurrencies will be the killer app for blockchain. There’s no doubt about that. Eventually, they won’t just be used for speculation. They’ll be a means to exchange value between people, organizations, and ultimately — machines.
The networks of today are private, closed off silos of information that only communicate with the outer world through defined interfaces. Eventually, these systems will require greater flexibility and autonomy if they are to cooperate to serve us in ways not possible before.
Think of all the friction that currently exists with online payments, for example. Bank transactions are slow for a reason. And no one really knows how it works. Unless you’re working at PayPal or Venmo, you probably don’t know why funds take 3–5 business days to appear in your account.
Blockchain technology enables peer-to-peer payments, so when paying for your stay, you’ll actually be sending the funds directly to your host — not some escrow service. Of course, there will also be logic in the protocol to handle disputes and manage the routing of funds. Because it’s offering a service, the protocol might take a small percentage, but it’ll be magnitudes lower than a bank’s or payment processor’s fees due to the lowered processing cost. Read more