Bitcoin expert J. R. Willet is looking to transform not just Bitcoin, but the cryptocurrency world. In his view, Bitcoin is incomplete, and has led to the creation of altcoins which he says has diluted the message of Bitcoin. He wants to change the situation by creating a protocol layer that exists on top of Bitcoin.
That protocol layer will allow for a plethora of new digital currencies to be created that will all exist on the Bitcoin block chain. It’s called MasterCoin.
The MasterCoin protocol can be described by analogy to the HTTP protocol, which the World Wide Web runs on, being a layer that exists on top of the TCP/IP protocol and that working atop the IPv4 protocol. It will enable new protocols, i.e. new currencies, to exist as part of Bitcoin, and not something different from it. In other words, currencies created on top of MasterCoin will use the Bitcoin block chain.
In the specification that Willet published online, he describes altcurrencies as: “Alternate block chains compete with bitcoins financially, confuse our message to the world, and dilute our efforts. These barriers interfere with the adoption momentum of bitcoin and the adoption momentum of alternate currencies as well, regardless of how well-conceived their rules may be.”