The quantity of data capacity available for transactional activity on a network is known as bandwidth.
What Is Bandwidth?
Bandwidth is quantified by the number of megabytes or gigabytes per second processed on a network. When the bandwidth limit on a network is reached, the data flow becomes insufficient to manage the volume, and connections slow down.In simple terms, bandwidth refers to how much data you get per second, whereas speed refers to how quickly that data is processed or downloaded. Let’s use the example of filling a bathtub. More water can flow at a faster pace if the bathtub faucet is larger than usual. Consider water is bandwidth and the pace at which it flows is the speed. Bandwidth is sometimes confused with internet speed, although it refers to the quantity of data that can be transferred through a connection in a given length of time (quantified in megabits per second) (Mbps).
You’ll need extra bandwidth to keep up the speed if you have many devices connected to the internet at the same time. To achieve the expected experience without a lot of buffering or latency, streaming, gaming, and other high-capacity activities require a specific level of internet speed. The more bandwidth your internet provider can supply, the faster you will be able to get things done.
Tokenization of bandwidth is achievable with the blockchain technology. Tokenization transforms it into a marketable and divisible asset, where its trading is similar to smart banking and digital money, thanks to the internet and the blockchain network. However, in this situation, you would be exchanging bits per second instead of money.
In terms of longevity, the physical infrastructure intended to manage bandwidth is made to endure everything that comes its way. Regardless of what some internet service providers claim, bandwidth is a limited resource. Because of its scarcity, it is extremely valuable.
While the cost of producing bandwidth is expensive, it has inherent worth, unlike paper or digital money. For example, the internet relies on it to function and survive in this world. There is an ever-increasing need for computing resources, such as bandwidth, courtesy of the high and steep demand for technologies such as big data, analytics, and the internet of things. Only in the rare case of a drop in technology use will bandwidth deflation happen. Instead, if local businesses and individuals become involved in constructing the necessary infrastructure, a gradual increase over time would be observed because it is difficult to simply generate additional bandwidth as the currency retains its worth.
The bandwidth would function as a form of currency on a decentralized network, unlike Dollar. Like bitcoin, bandwidth may enable complete transparency and security without the need for a centralized financial institution.
In reality, humans have utilized a variety of substances as a kind of exchange. A stable currency, on the other hand, must have the following characteristics: trustworthiness, longevity, divisibility, and uniformity. It should also be rare, clearly identifiable, and challenging to counterfeit.
As a result, bandwidth has the potential to become a super currency that can function without the presence of a central bank.
The main issue with bandwidth is the currency’s trustworthiness. A physical, virtual, electronic, or abstract currency cannot survive without trust and belief in the system.
Regardless, bandwidth is valuable and can help to enhance technological advancement in the blockchain industry. Although bitcoin is the most popular cryptocurrency, the advent of blockchain has made it possible to tokenize and exchange practically anything of value. Developing a currency to power the future of computers can help humanity advance technologically.