BitBlotter

Bitcoin isn’t just for buying and selling cupcakes and cameras anymore.

Entrepreneurs including backed by investors like Andreessen Horowitz and BitAngels are betting that the technology behind virtual currency can be used for a range of financial tasks.

Invictus Innovations, Ripple Labs are two players

Task likes authentication (a buyer isn't posing as someone else) and verification of payments are two players in space.

$1.22 trillion global electronic-commerce markDet

David Johnson, co-founder of BitAngels, explains "people are just starting to realize that Bitcoin isn't a currency, it's the Internet of Money.

Bit Angles is currently considering more than 30 projects in the Internet-of-Money cateogry.

It's recognized even among financial firms that bitcoin's underlying design can be used for an transaction requiring some degree of verification. Goldman Sachs noted the technology could hold promise.

Bitcoin's future as the Internet of Money was one of the hottest topics at the CoinSummit conference in San Fran this week

GOOD SUMMARY: "Bitcoin captured the attention of investors and innovators last year, fueling a rally that drove the value of the digital money to about $1,200 from $12. More recently, scrutiny from governments, bans in China and India, and the collapse of online exchange Mt. Gox have cast doubt on the viability of Bitcoin as credible replacement for fiat currencies."

GOOD EXPLANATION: "The software behind Bitcoin relies on a public record of every transaction that’s ever made. When someone spends all or part of a Bitcoin, the change in ownership is recorded by a global network of computers and posted to a public register, ensuring that the same unit of money can’t be used twice. The owners of computers solving and verifying these transactions are rewarded with new Bitcoins for their work."

The block chain (Bitcoin's building blocks desinged to validate each transaction) are adaptable for any type of exchange, regardless of whether theya re attached to currency or not.

BitShares X is a decentralized bank and exchange, among first Internet of Money services. BitShares X will debut in second quarter and allow users ability to save, trade, borrow, lend financial securities from dollars to derivatives,without an intermediary like a bank or brokerage.

The technology an potentially eliminate fees, which pay for the cost of accounting systems, baking services, and verification of account holders, according to Chris Dixon

Token ownership

Buying real things: Ebay and real estate brokers stand in middle of transaction, ensuring that each party's identity and making sure everyone gets paid, for a fee. Many people opt to pay a middleman to minimize risk. (DEATH OF A MIDDLEMAN)

Ownership of goods can be tied to a digital token that can be transferred to a buyer from seller simultaneously with payment

Keybase, another nascent idea, works as a virtual credit card, verifying people using block chain. It can also be used as certificate of authenticity for files or online video streams.

Bitcoin Tangible Trust lets people buy and trade gold using Bitcoin technology to validate transactions and show ownership

Ripple Singapore offers similar services. 

Digital media such as music and video can also benefit from the same technology.

Invictuus is planning a service that lets users buy shares in sound tracks for example, which would allow fans to buy into a song when it's new, and if it becomes popular, you can make money, Larimer said. It will also allow verified digital content ownership , which will be a natural defense against piracy. 

Voting tools...

Bitcoin technology and cars connected to wireless networks could see package courier services evolve into a self-organizing industry.

MaidSafe has developed a service that lets consumers share storage or processing power with others...a distributed network 

Dave Cohen: voting

JP Morgan Chase and Ebay have filed patents that mention digital currencies including Bitcoin.

Most well known companies creating alternate versions of Bitcoin network include Mastercoin, Ethereum, Colored Coins, Counterparty, Ripple, and Bitshares.

The altcoin sector provides opportunity to people bullish on concept of decentralized block chain systems with similar characteristics to Bitcoin.

Panel included Litecoin Creator Charlie Lee, dogecoin founder Jackson Palmer, and Paul Vernon of altcoin exchange Cryptsy.

in near future will we be tipping with dogecoin, spending loose change with litecoin, and making big payments with bitcoin?

Charlie Lee said people aren't educated enough about Auroracoin in Iceland. "It's important to educate merchants to get on board.

The idea that every cryptocurrency has a place in the ecosystem is a bullish view. 

Fragmentation could be a big problem, but altcoins also rep a huge opportunity for community. 

Could serve as backup coin if bitocin fails

Biggest dealer of precious metal for bitcoin in world. 

Zach and Josh Harvey, two Israeli brothers who own a high-end electric guitar shop in Tel Aviv, move to New Hampshire around the same time they become interested in Bitcoin in 2011, and in February 2013 built a prototype for a Bitcoin ATM.

The name “Bitcoin ATM” is a misnomer. They don’t let people deposit or withdraw money from bitcoins from their accounts. Instead, it converts money into bitcoin and deposits it wherever the user designates it to go (like an online wallet).

The Harvey’s unveiled prototype at Liberty Forum, and afterwords closed their guitar shop and set up company Lamassu.

Lamassu has sold two hundred and twenty dispensers so far, and is now turning a profit.

Robocoin launched two days after Lamassu, which offers an two way ATM (bitcoin to cash, cash to bitocin).

Other lesser known companies sell machines

Lamassu machines are owned by independent operators who are free to supply bitcoins from own reserves or allow them to be withdrawn from an exchange site. 

The purpose of distributed applications is to better economize digital resourcess.

Buterin says cloud storage is one examples.

Mastercoin's David Johnson says in 5-6 years thinks billion people using bitocin, but won't see what they're using.

Bryan Snyder said Proof of stake crypto currency NXT focused on fraud prevention via use of tokens  

Etherium is build DACs to enforce the advanced function of money, wants to "reinvent the wheel"

Buterin: "Bitcoin itself really isn't all that egalitarian"

**New ways to offer incentives to community other than mining are going to be important. 

David Johnston said if you're doing something that requires hashing power, need to incentivize groups.