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OTTAWA - The success of bitcoin has spurred the launch of hundreds of copycat digital payment systems looking to cash in on the popularity of the cryptocurrency.
But now a new generation of digital assets are gaining momentum, offering to do more with blockchain -- the technology that powers bitcoin as a currency -- than just allow a way to pay for things online using virtual Internet money.
Ethereum, one of the biggest cryptocurrencies after bitcoin, has emerged as one of these up-and-coming alternatives, says Bitaccess co-founder Moe Adham, whose company provides software services for financial technology businesses using blockchain.
"It's a different type of digital currency that has different properties and allows people to do interesting things," said Adham.
Even the Bank of Canada, together with several other partners, have started to look at whether blockchain technology could be used for wholesale payment systems to move enormous dollar amounts daily. They found that while it may be possible in the future, concerns over issues such as privacy must still be addressed.
Jean-Paul Lam, an associate professor in economics at the University of Waterloo, says bitcoin is but one application of blockchain technology, just like email is one application of the Internet.
He says Ethereum uses blockchain for "smart contracts," which are electronic versions of regular contracts that are automatically executed once all the conditions are met. …
recourse : Wong, Craig, The Canadian Press