In 2008, Satoshi Nakamoto published a paper describing Bitcoin’s electronic cash system in the Cryptography Mailing List of Metzdowd. The Genesis block of Bitcoin was created on January 3, 2009, and the first 50 Bitcoins were created simultaneously. Bitcoin was free from the constraints of “trusted third party” with distributed ledgers, and which was called “blockchain” by Satoshi Nakamoto.
As a kind of cryptocurrency, Bitcoin has great advantages over traditional currencies: Decentralization: Bitcoin is the first type of distributed virtual currency, with the whole network composed of user nodes, and no central bank. Algorithms serve as the guarantee for Bitcoin security.
Global circulation: Bitcoin can be managed from any computer connected to the Internet. There is no complicated formality or line of limit for its transaction. You can make payment if you know the Bitcoin address of the other party.
Convenient to use: compared with cash and various precious metal currencies, Bitcoins cost almost nothing to carry and keep, and there is no wear and tear.
Cryptocurrency ecosystem might seem like a slow start, but its evolvement became faster and faster in the last two years. It is a sign that the tech giants like Microsoft, Dell and Dish, etc. are embracing cryptocurrencies as a mode of payment. This is a revolutionary solution, and cryptocurrencies have benefited numerous businesses and industries, while the financial and technology industries have become the vortex of cryptocurrency and blockchain storm:
• Financial industry
Financial institutions are probing into how to use their advantages effectively: Banks are adapting to blockchain technology and carrying out transactions of derivatives or even cotton with it. A consortium of multiple banks is supporting IBM to create a blockchain technology that can be used for cross-border transaction. Australian Stock Market is the world’s first stock trading platform based on blockchain.
• Banking industry
More than 2 billion people in the world have no personal bank account. Cryptocurrency accounts enable them to transfer money and receive payments. The countries with unstable or non- problematic banking systems, for instance, Venezuela, have turned to cryptocurrency, such as Bitcoin and etc.
Many large online retailers have begun accepting the payment with token coins, such as Bitcoin or Ether, etc. Overstock.com, Expedia, Shopify and other large companies have accepted cryptocurrency as a mode of payment. Merchants and users can complete transactions more safely and faster, and avoid credit card fraud; meanwhile, they need not to worry about payment service providers freezing funds for all kinds of reasons any more.
We’ve seen how cryptocurrency can change the world in more ways than people can imagine.
Current problems for Bitcoin and its competitors
Bitcoin has emerged as a kind of peer-to-peer electronic cash system since Satoshi Nakamoto published the White Paper, which is just the design goal of Bitcion. As people gradually explore the application possibility of Bitcion in terms of store of value, world monetary base, global settlement network, derivative financial system and global notarization system, etc, Bitcoin has been given more and more important significance; nevertheless, all these purposes are not likely to be achieved simultaneously; as a result, an increasing number of divergences have appeared among the development teams, miner manufacturers and miners in the Bitcoin eco-system due to the different economic and political prospects in the future. In particular, the centralization problem of research and development teams in the expansion and HashRate war has raised serious worries about the future political risks of Bitcoin.
Bifurcation always exists in Bitcoin (BTC). In the previous bifurcation, the status of BTC was never challenged in the field of cryptocurrency, but the market share of BTC fell sharply to about 34% from above 90% early due to the network congestion resulted from too small blocks in the cryptocurrency bull market in 2017. Although it returned to more than 50%, BTC congestion still existed in the next rising cycle, so it is difficult to predict it in the future. In most people’s opinions, the expansion of block was originally a consensus, which was a simple thing, but the dispute was about how to make expansion. Nevertheless, the debate, contradiction and even war caused by the seemingly simple issue has cast a shadow on the development of BTC, and all kinds of problems 4/22
resulted from the minor issue of expansion have made the future of BTC and many forked coins based on HashRate POW gradually unclear. In addition, the twists and turns confronted by the giant company of miners in listing, and the dull of sale of Asic miners have blocked the channel for many potential users of digital currency to access digital currency market through mining, thereby making the channel for funds to enter digital currency market become the purchase of USDT; we believe it will harm the future development of digital currency market. Meanwhile, it is always difficult for many digital currencies based on GPU and FPGA mining, such as ETH and GRIN, etc., to become the mainstream choice due to the high price of GPU, and POS digital currency cannot undertake the heavy task of anchoring real-world assets; therefore, it is also difficult to introduce more funds into the digital currency field.
Hence, we created the Volume Network, and we hope the miners and new entrants could obtain digital currency through hard disk mining, with the aim of enabling new users to acquire digital currency through lower-barrier mining, thus entering the digital currency market.Volume Network White Paper