The financial system has changed and HP has recognized this. In the HP post the company says that we’ve all heard the “hype” of bitcoin, however their company believes the tech behind it is the “real promise.” Namely the blockchain and its ability to service smart contract management. The writer states:
“In Bitcoin, the contract is the transaction itself: one party sending another funds. But in commercial banking or investments, smart contracts could execute unknowably complex contingencies based on the terms of the contract, all in real-time, with total transparency to the agreeing parties.”
The company refers to the technology as “warp speed” in comparison to the financial and legal system of today. Wall Street, bankers and lawyers being said to be reaping in “small fortunes” on what the blockchain could do for free. Blockchain transactions are recorded on the longest ledger on the internet and cannot be tampered with. This keeps transactions very transparent to run and watch. Who watches the watchmen? Well, the blockchain does of course.Hewlett-Packard showing support for Bitcoin and it’s underlying technology shows the company has a keen interest in the protocol. On October of 2015 HP is expected to split from its product enterprise of computers, printers and services into two factions. The result will lead to two different publicly traded businesses. With many speculating that HP will focus vastly into the service and networking arena, the concept of Bitcoin could help them.
HP believes that Bitcoin is something Fortune 500 better look at. With quite a lot of innovation going into the technology it’s only a matter of time that Fortune and others do notice. If just “ two nerds” succeed in this venture of making smart contract peer-to-peer and accessible. It’s only a matter of time before “legions” of law officials and financial firms get disrupted. Not only the financial and legal industry of the past but also circumventing the IRS as well.
“The question is: if two nerds on the Internet hold a transaction, does anyone care? The Fortune 500 had better. Innovators in the block chain space are experimenting with ways to use the protocol in B2B payments without all the usual limits on transaction volume. If they succeed, credit card companies, payments processors, and legions of accounting and law firms would be devastated.
That’ll cost jobs but save billions for companies and individuals alike. But it also will increase the speed of transactions at all levels of the economy. With that kind of uptick in volume, the IRS might end up being the most disrupted entity of them all.”