Now, you may be thinking what's different and unique about the Bitcoin network compared to such financial networks?
The main difference is that Bitcoin is structured as a P2P network on top of the internet. Decentralization of control is a core design principle that is achieved and maintained by a flat P2P network architecture.
The Bitcoin P2P network is a collection of nodes or peers that run the Bitcoin protocol. The Bitcoin protocol is a piece of software engineering similar to the Internet Protocol (IP). Everyone has heard of IP addresses nowadays, which are used for communication over the internet. Just like the World Wide Web with its websites, domain names, and other applications, the Bitcoin network is a layer operating on top of the internet.
Bitcoin and other public blockchain network protocols can bypass the web. In fact, in some areas, they can provide a viable and superior alternative. Beyond payments, there are other game-changing blockchain applications, which we'll cover in detail later in Chapter 11, Blockchains Focused on Specific Sectors and Use Cases. The following are some of the areas where Bitcoin can be a viable alternative:
- E-commerce
- Web search
- Social networks
- ID authentication