November 1, 2014
In May 2013, I wrote a CTO Corner about Bitcoin1 where I reviewed how it works as well as factors that are both driving and inhibiting its acceptance in the marketplace. This article updates my assessment based on events that have occurred during the 18 months.
Bitcoin is an electronic cash system using peer-to-peer networking, digital signatures and cryptographic proofing to enable irreversible payments between parties. Back in the 1990s, at the start of the commercialization of the Internet, there were many start-up companies offering different e-cash schemes and other innovative payment schemes, but only PayPal succeeded because it addressed the need for on-line payment options for Internet auctions, such as eBay.