Profile

What is Bitcoin 2.0?

What is Bitcoin 2.0?

So you just discovered Bitcoin, and now you're starting to hear about the next wave of Bitcoin? What is this 2.0 movement, and what does it offer? In this video I ...

Transcription

What's up, Party People? Chris DeRose here, Community Director of the Counter Party Foundation, and today's question is, "What is Bitcoin 2.0?" So Bitcoin 2.0 is something that's actually been around for a little while now, which is funny because Bitcoin 1.0 hasn't even been around for a very long time. But it's still like a sort of nebulous term that's been defined by various people in various ways. There's a handful of things that are pretty constant, and typically, it's roughly this: Bitcoin 2.

0 is something that deals with scarce resources and manages counterparty risks, usually in financial transactions in a way that is decoupled from the Bitcoin protocol itself. I think that's the general term for most of the Bitcoin 2.0 projects. Now, more specifically, things that you'll see in the Bitcoin 2.0 space: There's typically either projects that use the Bitcoin Blockchain, and that's projects like Master Coin, and counterparty, Proof of Existence, so that's not really a 2.0 thing.

Then there's projects which don't use the Bitcoin block chain. And that would be things like maybe Etherium...It's not quite out yet..

.Next, and a handful of bitshares, and a handful of others. So that's roughly the dichotomy of the space of things that use Bitcoin and things that don't. Now, certain to, I'm a big believer in the Bitcoin Blockchain, so I talk a lot about counterparty. In all these projects I mentioned, there's typically a notion of a "smart contract," maybe not in Master Coin, but in most of them. A "smart contract" is typically a more featured functionality for the purpose of processing scarce data, so user assets or various non-bitcoin-related things, so you can set up contracts with little pieces of computer code that will manage the actual value.

In terms of delivery, whether it goes to this person or that person based on an event. Betting is very common in this 2.0 space. That's one big thing. Another very common thing in the 2.0 space is functionality related to user assets, things that maybe you define a gold bar or maybe a U.

S. dollar that you hold, or you haexchanges, in your company. Now, maybe you want to sell these shares or sell these gold bars. So there can be sort of exchanges where people can go ahead and make bids and sell and buy these various tokens. That's a very common feature in the 2.0 space.

And then, from there, there's a lot of incidental features that are probably less and less common. 2.0 is a big thing. There's some people that I think would say Storage, MadeSafe, and they might be. Those are projects that don't deal with financial data. They deal with the storage of regular data.

And there's probably a lot of value to those applications, certainly in the terms that they may manage counterparty risk, and that's just a theme that you see with Blockchains and typically 2.0 in general. The counterparty risk for those chains isn't defined in financial terms, but perhaps copyright terms or something like that, where there's third party to the distributor and the receiver of data And that third party, being a counterparty, may be a source of failure or something like that. But I think that's a rough overview of Bitcoin 2.0, and if you're new to Bitcoin, definitely focus on the 1.0 stuff first.

There's so much work being done in the 1.0 space. The 2.0 stuff, I wouldn't call it a pipe dream, or anything like that. I certainly believe that CounterParty is working well. A lot of them are just versioning sort of developments, so there's not a whole lot of action going on there yet.

Certainly, we expect that to change. Yeah, that's most of it. If you have a specific question about a 2.0 project, why don't you ask me? You can reach me on Twitter. My handle is "derosetech." You can leave a comment here at the bottom of this window, or you can e-mail me at chris@chrisderose.

com. I'd love to answer your questions, and subscribe to the channel if you like what you heard. Thanks, Party People.