WASHINGTON, DC - The Subcommittee on Commerce, Manufacturing, and Trade, chaired by Rep. Michael C. Burgess, M.D. (R-TX), today continued its Disrupter Series with a review of digital currency and blockchain technology. Today’s hearing follows previous discussions of Internet of Things, sharing economy, drones, mobile payments, and 3D printing.
“Having seen the development of email, the Internet, and the transitioning of the U.S. economy into the digital space in the last two and a half decades, this cutting-edge technology is truly incredible. It is fascinating to see the possibility of yet another technological revolution on the horizon that could help address the trust and security issues that are a daily challenge for individuals and companies in every sector of the U.S. economy," said Burgess.
What is Blockchain Technology?
According to the Chamber of Digital Commerce, the blockchain is a peer-to-peer digital asset transfer system - or open-source software - that is available to the public. The very first blockchain application was bitcoin digital currency. Blockchain technology can also be applied in the health care, real estate, media, hospitality, retail, and energy sectors.
What is Bitcoin?
Bitcoin is the best-known digital currency and can be purchased and used to conduct commerce across several platforms and thousands of merchants. It could also bring many new people to online commerce and the global marketplace.
What Makes Bitcoin so Unique?
Bitcoin digital currency is based entirely on mathematics. No longer would consumers have to rely on financial institutions to settle their transactions. The software is so technologically advanced that it has the capability to verify features, send money instantly, be globally accessible, and is cost effective.
Where Does Blockchain Come Into Play With Bitcoin?
The blockchain is essentially the holder of all bitcoin transactions. By verifying and authenticating each transaction the consumer is relieved from relying on a financial institution. However, consumers do have the option to independently audit their transactions.
Jerry Brito, Executive Director of Coin Center, noted that while bitcoin is an emerging technology, if it’s successful it could fundamentally change the way we make transactions electronically. “Like the Internet itself, Bitcoin has the potential to be a platform for the kind permissionless innovation that has driven so much of the growth of our economy. In fact, Bitcoin looks today very much like the Internet did in 1995. Some dismissed the Internet then as a curiosity, but many could see that such an open platform for innovation would allow for worldchanging applications to be built on top of it," he said.
“From executing smart contracts to settling money transfers in minutes instead of days, millions of folks in Michigan and across the country could see the blockchain transform how they engage in everyday commerce in the next few decades," said full committee Chairman Fred Upton (R-MI). “The exciting aspect about this technology, however, is that it can do much more than impact currency, it has the potential to affect almost every industry that relies on intermediaries to establish trust between two parties that want to do business."
