Samsung Electronics and IBM team up and show a keen interest in the Bitcoin technology. Even though the last one year have made the fate of Bitcoins uncertain in terms of acceptable form of payment and its value has fallen considerably, that didn’t stop major industry players to get attracted to this innovative tool. Bitcoin as a currency itself is of little consequence to these companies. The principle software that runs Bitcoin is of much greater significance to these companies that see far beyond its use as a virtual currency. The technology that is used to power Bitcoins can be scaled to record the ownership change of assets in public ledger by using a system of network operated mobile phones and computers. It can also be useful in concluding all kinds of transactions online.
Samsung researching the technology behind Bitcoin
A division of Silicon Valley by the name of Samsung Research America is studying the Bitcoin blockchain technology to come up with better ways that can validate the claims of authenticity. Steven Rahman, Strategy Director at their research division says that the blockchain mechanism is an interesting technology that is applicable in many other domains and not just the virtual currency alone. Samsung Research America has been developing technologies that will be usable by commercial products in the next 2-5 years.
It can also act as a storage option
The blockchain technology has another potent use outside of cheaper online money transfer and that is to store files like videos and songs. So far, the companies have to buy large server spaces or lease high volume capacity from service providers to offer storage solutions to their end users. Blockchain technology will change all of that as it allows the users to store files without needing that additional space on virtual servers.
Venture capital arm of Orange, based in Silicon Valley, is looking to fund bitcoin-based start-ups with latest technologies in their business model. Earlier this year, New York Stock Exchange had funded the Bitcoin start-up company called Coinbase and NASDAQ OMX group gave Bitcoin Trading Company the license to use their technology.
Looking at these trends, one can only say that Bitcoin has experienced a rough patch when it comes to become a legible instrument of financial systems. However, the blockchain technology is far more powerful with many abilities that are not limited to the virtual currency alone. Samsung is capitalizing on this trend with its foresightedness and a strong team of researchers to come up with novel use of this technology.