One of the things that the recent developments in the cryptocurrency world have taught us is that Bitcoin does not have the best decentralized system. However, on a grand scale, it is without a doubt the most successful of the bunch so far. The principle of maximalism here is based on Bitcoin being sufficient for all present and future investments in the world of digital currencies. As such, maximalists are for the path of the currency becoming a monopoly later in the future. The concept has garnered so much traction that other top-rated individuals in the digital world are commenting. For starters, Vitalik Buterin, a developer for Ethereum commented on the ideology of the whole concept.
The Bitcoin network uses a distributed ledger technology for its blockchain. This technology is the state of the art because it allows for transactions to be shared through piles of recorded copies being sent to the participants on the network. It’s considered state of the art because it is highly secure and makes fraud almost impossible. For instance, if a fraudster changes a part of the blockchain, all the other participants have the correct copy, making it easy to identify where the problem originated.
The level of fame that the new age has given Bitcoin has also led to the creation of a new generation of digital currencies. Most of the members of this new generation are built on the basic structure used by Bitcoin. In essence, the distributed ledger system has been revamped from just being used in peer-to-peer transactions to several other uses. These modified versions of the distributed ledger system are known as private blockchains. This system is growing more popular daily. This is because its use is not limited to cryptocurrencies alone, the government and prove parastatals also use it. This use comes from it being modifiable to a point where only a specific number of people would be able to access the network. The access will come only when the parties involved have been verified properly. This system could not work with a trading entity where individuals are after official British Bitcoin profits.
The system used by the private blockchains can be on two types of networks.
- Semi permission
One thing both of these networks have in common is the inside the networks, specific permissions are giving to certain parties of the network to execute specific actions on the network. However, on a more specific note, each network is also able to set up restrictions preventing some participants of the network from being able to access some functions. This could be similar to restricted access to documents on Microsoft word that prevents viewers from being able to edit. An example of its application is the government of a state allowing access to specific records and information to only a group of taxpayers or businesses. This could be due to a large number of reasons with a major one being that these individuals work in the service industry.
The major principle that is in operation here is the centralized nature of the private blockchain system. Unlike the public blockchain, there are no specific restrictions, this is one of the factors that have contributed to Bitcoin’s continuous relevance in society.
The fact that decentralization is a major part of the Bitcoin network, is also the premise on which the principle of nationalism is built. This makes using private, semi-private, and permissioned blockchain runs in opposition to the principle. There are many other facets where the continued application of maximalism becomes recurring. As such, the concept will continue to live and influence major parts of the cryptocurrency network for several years to come.