I learn something new about Bitcoin every day. Eli Durado has a great Bitcoin post on The Umlaut that describes some capabilities of Bitcoin that haven’t received as much press as its basic transactional capabilities. Durado also describes the Script language that’s used for Bitcoin transactions:
Script is not limited, however, to these conventional transactions that merely transfer coins from one person’s control to another’s. It can evaluate statements, execute conditionally, do math, and move bits around.
So what, you say? Some of the applications that Script is capable of include:
- Arbitration, to handle disputes
- Assurance contracts (think of a Kickstarter-type scenario)
- Continuous micropayments
- Notary services (!)
- Secure, reputable, pseudonymous identities
Durado argues that the status quo of SWIFT, ACH, Fedwire, etc. is hobbled because they are prohibitively permissioned and because of that you can’t do much else with them. Because of its openness, he argues Bitcoin can transform Finance like the Internet transformed communication:
Permissionless innovation means more innovation.
Indeed.