At the end of 2015, Bitcoin was praised by the media as the best performing investment product. Behind the investment is a strong application support. Bitcoin itself is too complicated for most people, so the responsibility of connecting Bitcoin with ordinary people falls on software. In today's mobile Internet, the status of mobile APP is particularly important.
Although Bitcoin itself is recognized as money or an investment, software developers have given Bitcoin unlimited possibilities, just like the Monkey King Sun Wukong who has 72 transformations. Let's take stock of how many applications Bitcoin has as of 2015.
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1. Overview of Bitcoin Applications
As of today, the "APP" column of Babbitt has collected 474 applications. The common entrances to Bitcoin are Android phones, Apple phones, web applications, computer software and websites. Figure 1 shows the classification of Bitcoin applications by platform. (Data source: http://app.8btc.com/app_5_0_0.html)
From the above data, Bitcoin has entered all mainstream computing platforms. At present, people mainly use Bitcoin through computers, accounting for more than 70% of the entry points. Mobile terminals account for the remaining 30%. Android's openness and Apple's strict review are also reflected in the development of Bitcoin applications. The number of Android applications is twice that of Apple applications.
The application scenarios of Bitcoin are realized by using different types of applications. Figure 2 shows the distribution of Bitcoin application types. (Data source: http://app.8btc.com/app_5_0_0.html)
Bitcoin is mainly defined as a currency and an investment, so trading and wallet applications account for the vast majority of the market. In 2015, the term blockchain became popular, and blockchain developers also contributed a small 10% of the application share. Surprisingly, as a serious investment product, Bitcoin application developers also contributed 7 game applications and 18 social applications. Mining has become an increasingly professional skill, which is reflected in the number of mining applications. Only 15 software are used in the mining industry, and they are mainly developed by major mining pools.
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2. Development and Trends
It is difficult to grasp and summarize the development and trend of Bitcoin applications, because we currently do not have a good data mining platform to see various application data. Therefore, this chapter is somewhat subjective.
1. Bitcoin applications have been installed on all major computing platforms
After seven years of development, Bitcoin can now be seen on various computing terminals. There is no need to say more about PC and mobile platforms. Bitcoin has occupied a certain amount of traffic on cloud computing platforms in 2015, and a large number of complete nodes have been deployed on clouds such as Alibaba Cloud.
Through software hardware, Bitcoin also appears on some dedicated terminals, such as Bitcoin hardware wallets and Bitcoin paper wallet printers.
2. The era of Bitcoin application is coming
Bitcoin application scenarios have begun to penetrate into all areas of life. Bitcoin is no longer simply positioned as a currency and investment product. Through the expansion of various software, the functions that Bitcoin can perform are already very extensive. For example, through various merchant tools, especially the products provided by BitPay, Bitcoin has become a widely accepted payment tool. It is worth mentioning that BitPay has extended its business to all parts of the world; through the exchange rate hedging platform, Bitcoin has occupied an important position in the foreign exchange remittance market; through the asset anchoring program, Bitcoin has become a mapping asset function; using Bitcoin's programmable characteristics, Bitcoin has begun to show its talent in smart contracts; Bitcoin has even penetrated into the field of games, including acting as wealth in game programs...
3. Bitcoin wallet applications are increasingly leaning towards mobile devices
Due to the sandbox design of the mobile operating system, it is difficult to read information across applications, so mobile applications are more secure than PC applications. Therefore, Bitcoin applications, especially wallet and trading application development teams, pay more and more attention to the development of mobile merchants. According to the research of the development team, the following experience is summarized in terms of security ranking: mobile wallet > desktop wallet > web wallet. Therefore, we can see that almost all exchanges launched mobile apps in 2015, and developers including offchain wallets also launched mobile wallet applications.
4. Blockchain applications shine
2015 can be regarded as the first year of blockchain. Blockchain was hyped by the media as a glorious, great and correct high-tech. In comparison, Bitcoin was treated much colder by the media, and even had a gray tone.
While the media is enthusiastic about blockchain, various development teams are also working hard to develop various applications in response to people's attention. Microsoft's Azure blockchain platform has been shining, providing developers with a blockchain creation platform. Nasdaq's blockchain trading platform is ambitious in its attempt to solve the problems of opacity and inefficiency caused by centralized auditing of stock trading processes. The Linux Foundation's Hyperledger project has also joined the game, trying to change the existing financial system. Ripple is a strong competitive chain in the market, which is constantly popular among the media and capital, and has mature foreign exchange applications.
There are also a large number of innovative competing chains on the market, such as ConsenSys, Eris Industries, CoinPrism, Factom, Manifold Technology, LibraTax, Digital Asset Holdings, and the Big Four accounting firms PwC, Deloitte, and Ernst & Young have all proposed blockchain concept products. These projects are basically in the development process, with a wide range of concepts, all claiming to be able to solve the efficiency, fairness, security, etc. of existing finance, justice, or auditing.
Governments around the world have also joined the blockchain camp, claiming to use the advantages of blockchain to develop central bank currencies. Various fields that require centralized auditing have begun to hype the concept of blockchain. Various private chain concepts have begun to be hyped, but mature applications have not yet seen the market.
The official's contradictory attitude towards Bitcoin has completely disappeared on the blockchain. There is a unanimous consensus that blockchain is a good thing, and blockchain conceptual products have exploded.
5. Mining applications are not popular
The trend of Bitcoin mining concentration is obvious, which also leads to the mining software industry not being as flourishing as other fields. The mining software itself is basically developed by the core development team, major mining pools and mining machine manufacturers. There is almost no news about mining-related applications. The blockchain engraving service in 2015 is a good application of the mining industry, which adds a source of mining revenue. Although it is insignificant, it is still an application.
21 lcn has launched many concepts in the mining industry, most of which are hardware products, but no substantial software products have been released.
For the Bitcoin ecosystem, block rewards are bound to decline, and transaction fee income does not show any growth trend for the time being. If the industries surrounding mining fail to grow and develop, this will be a risk for Bitcoin.
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3. Diversification of Bitcoin Core Code Development
Searching the keyword "bitcoin" on GitHub gives you a rough idea of the richness of the development of the Bitcoin core code. See the figure below:
GitHub shows that the Bitcoin core code has nearly 3 million copies, more than 24,000 Issues, and 535 code contributors. We use the most successful open source project in history, Unix, for comparison. Unix has nearly 34 million copies, more than 170,000 Issues, and 565 code contributors. This shows that Bitcoin is also a very popular open source project.
The core code development languages also include mainstream programming languages, with JavaScript, Python, and Java occupying the top three spots, while there are not many developers using Bitcoin's genesis language C++.
In 2015, due to the discussion of capacity expansion, several Bitcoin core wallets emerged, the most popular of which were Bitcoin XT, Bitcoinj, and Bitcoin classic in early 2016. Currently, Bitcoin core is still the most widely used. Various versions compete with each other. The version with the most users is Satoshi:0.11.2, which accounts for 42% and is contributed by the Core dev development team. Classic0.11.2 developed by the Classic development team also accounts for 15% of the users.
Judging from the data, Bitcoin core code development has entered a period of diversification.
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IV. Major events in the application of digital currency (blockchain) in 2015
1. Bitcoin expansion
As the number of Bitcoin users grows, the 1M block size is no longer sufficient. The current average block size is around 0.8M. As a result, the community has erupted in controversy over expansion plans, which has led to a large number of Bitcoin core code versions. The various applications developed around various expansion plans are even more complex and diverse. Major companies in the industry, especially exchanges, mining pools, and wallet providers, have produced a large number of test products, which have also brought about great controversy.
Because different expansion plans will bring different development paths to Bitcoin, the community is arguing fiercely and the situation seems to be split. So far, the controversy surrounding expansion has not stopped, and all Bitcoin users need to continue to pay attention to the development and testing of various applications.
2. Segregated Witness
Segregated Witness has injected a new topic of discussion into the community after the Hong Kong Scaling Conference. Because Segregated Witness can bring block expansion effects and improve the Bitcoin transaction data structure, the community has made a lot of discussions and arguments about its benefits and risks.
The main layer Segregated Witness was developed by the Bitcoin Core Development Team, and because its main members are employees of Blockstream, the conflict of interest was also brought up for debate.
In addition to the Bitcoin core code, there are also a large number of applications developed around Segregated Witness, especially wallets and exchanges.
3. Ethereum dominates blockchain applications
Ethereum became popular in 2015 and was enthusiastically received by many heavyweight organizations, including Microsoft and major banks in the world. Microsoft used Ethereum as a blockchain development platform, and major banks in the world jointly launched the blockchain settlement network R3, but the actual application has not been released. Similar concept products have exploded.
4. Blockstream dominates the Lightning Network and sidechain elements
The biggest pig in the expansion trend is Blockstream. The company has launched two major application concepts for expanding Bitcoin applications - Lightning Network and Sidechain Elements. Both are currently under development. Currently, it has been hotly pursued by the capital market and has completed its B round of fundraising, raising a total of US$76 million in two rounds of financing.
Because Blockstream employed important members of the Bitcoin core development team, the conflict of interests over the company's products and Bitcoin's development path has become hotly discussed.
In 2016, various software developments around the Lightning Network and sidechain elements are likely to explode. PricewaterhouseCoopers, one of the Big Four accounting firms, has already announced that it will work with Blockstream to develop blockchain products based on Bitcoin. Public opinion has defined the sidechain element as a milestone in the history of Bitcoin development. The media even sang the concept of Bitcoin 2.0.
5. China’s central bank leads the digital RMB debate
In the critical year when the concept of blockchain was hot, the People's Bank of China also joined the ranks, and the official opinions represented by Zhou Xiaochuan launched the concept of developing central bank digital currency. So far, only the sound has been heard, and no actual product has been released yet.
If the Chinese government has radical ideas, it can be regarded as a world leader, but I don’t know what the prospects are. But it is conceivable that with the power of the government, the basic knowledge of Bitcoin and blockchain will be popularized among the people. The application development around Bitcoin and blockchain will face a wider audience. In order to meet the needs of different groups of people and the needs of a large number of potential people, developers have huge opportunities and responsibilities.
6. Overstock launches tØ blockchain stock trading system
The tØ stock trading platform launched by Overstock can be seen as a milestone in the application of blockchain. Its slogan "Transaction is Settlement" simply and clearly points out the advantages of the blockchain system. Similar applications include Nasdaq's Linq platform.
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5. What will we see in 2016?
Bitcoin had a very exciting year in 2015, with the emergence of various software, and we have entered the era of Bitcoin applications. 2016 has arrived, what exciting things will be waiting for us in the field of Bitcoin application software?
1. Will the expansion plan be implemented in 2016?
It is a fact that the Bitcoin network is under increasing pressure, but there is no broad consensus on the benefits and risks of various expansion plans. Will Bitcoin face serious congestion due to the halving of production in 2016? Will a large number of users be unable to get confirmation after sending coins, and have to face the risk of long-term "coin loss"?
The risks and benefits of software development around various expansion plans are enormous. Will this magnificent reform drama come to an end in 2016?
2.Will Blockstream be the biggest beneficiary of this trend?
Segregated witness, lightning network and side chain elements are worth looking forward to. Bitcoin expansion plan and Blockstream's attitude are also the focus of community discussion.
Elements surrounding Segregated Witness, Lightning Network, and sidechains will once again be an opportunity for developers to showcase their talents.
3. Can blockchain applications be implemented?
Ethereum has indeed ignited the concept of blockchain applications, but so far, ordinary users cannot operate even a mature blockchain application product, including ETH wallets, which require professionals to operate. I wonder if R3 can provide convenience for us to use credit currency across borders. Can Nasdaq's blockchain trading program Linq allow us to use Bitcoin to buy US stocks?
4. Will the love and relationship between Bitcoin and blockchain continue?
The concept of blockchain has been very popular in 2015. Whether blockchain applications with hash pointers and public ledgers can develop together with Bitcoin, especially the introduction of sidechain elements, will it deal a fatal blow to blockchain applications? And whether Bitcoin can get the same treatment as blockchain technology in front of governments and large organizations, all of which will be played out in 2016. No tickets are required.
5. Is there a future for Bitcoin hardware applications?
After 21 lnc received capital pursuit, will Bitcoin hardware products enter a new era? Will Bitcoin hardware wallets be popularized to the general public? Will anyone make a pink mining machine?
Hardwareization of software and standardization of functions are very good ways to promote Bitcoin. I wonder if good luck will come out in 2016.
Thanks for reading.
If you find the article useful, please give me some Bitcoin to encourage me to continue writing.
Author: tan90d (Weibo @LightningHSL WeChat tan90d)
My BTC address: 14mhzjkJ71oMAMkKu3dy98dnUpkyQBHL1r
Source: Babbitt Information
