How does eBTC (ERC20) under the eBitcoin Initiative differ from Bitcoin & Merchants/Businesses that accept/promote BTC?
Bitcoin the platform is built on the concept of “proof of work” data that is expensive and time-intensive to produce but can be easily validated/verified. In Bitcoin’s case, proof of work is created through the process of “mining.” To mine a Bitcoin, a computer must complete a complicated algorithm, essentially going through the work of an extensive prime number calculation in exchange for some newly minted token. The algorithmic process is introduced economically as an inflation control measure and as an incentive (mining) to court a dedicated user-base. Bitcoin introduces this ideology which operates in a quasi-mental ponzi-scheme toying with notions of work & wage, wherein, the amount of work and cost to mine is so great the miner essentially is forced to stake until an influx of liquidity (new buyer) is entered into its relative market.
Transactions are connected to a user’s Bitcoin address, which is stored on its general ledger, called a Blockchain. If that address is linked to a real identity, transactions can be traced back to the user; if it isn’t, they can’t. This relative anonymity makes the platform appealing for things like incognito purchases over the internet. A key component of Bitcoin’s blockchain is the fact that it is an open, distributed ledger. Through the distributed nature of this ledger, the transactions on the blockchain are verified by the consensus of every member, offering limited security and absolute trust without a third-party overseer.
Merchants/Businesses acting as exponents for the Bitcoin platform find value in a controlled process of global transacting, wherein, historic price appreciation of BTC has yielded irrational gains – For example, Laszlo Hanyecz on the Bitcointalk forum paid 10,000 BTC for a couple of pizzas in 2010. Who in their right mind would ever transact something that nine years later could be and is worth $65 million – for pizza? Considering this example and the plethora of other illogical implementations of Bitcoin, as a scalable everyday utility value token, it does not pass muster.
eBTC (ERC20) was built to be a utility token focalized on supporting a Community of global business leaders working in collaboration to build financial technologies and mobile applications that simplify and secure the global transacting processes to ensure minimal volatility, maximum security, and absolute trust within every platform process.
Under the eBitcoin Initiative, partners, merchants, exchanges, and entrepreneurs share their unique technological capabilities that incentivize eBTC as an accepted means of utility payment while minimizing their shared operational costs. Learn More on our Eco-System Page!