Bitcoin Q&A: Bitcoin vs. blockchain


quick question in your view there’s a there’s a lot of talk out there regarding Bitcoin and blockchain what what is the difference in your view between blip coin and blockchain how are they central how are they similar how are they different blockchain is one of the foundational technologies that was invented at the same time by the same person or persons for Bitcoin and in a desperate attempt to co-opt embrace and extend this technology many of the companies and governments out there who are really looking at opportunities to create centralized versions of this and are missing the fundamental point which is decentralization are grasping on this blockchain technology and trying to circle the square trying to change this so there’s a bit of bargaining going on when I say bargaining I’m referring to the five stages of grief the response to Bitcoin has been denial anger and now we’re in bargaining and the bargaining stage is yes Bitcoin but not Bitcoin how about blockchain without the currency that represents a fundamental failure to understand what is the real value proposition here the real value proposition is a decentralized system the decentralized system itself only works if control over it is decentralized then that only works if there is a mechanism by which the the network can be secured that mechanism is a competition based on game theory that involves miners as they’re known don’t worry about what that means but what they’re doing is competing by staking a currency Bitcoin in this case or any of the other digital currencies and using that to guarantee that they’re going to follow the security rules if they follow the security rules they get rewarded again in the intrinsic currency of the network and if they don’t follow the security rules they lose and they lose the investment they’ve made in electricity or in currency that they’ve staked that mechanism is at the heart of making the system secure without the currency you can’t do the security without a currency you have to have a central authority that decides if a transaction should be included or not at that moment it is no longer borderless it is no longer censorship resistant it is no longer neutral it is no longer open every participant must be vetted if someone has control in our legal systems they immediately have a duty right a responsibility which means that you can’t give anyone control because if they have control all of the other features go away with centralization a better way to explain the difference between Bitcoin and blockchain is this the new automobile has come on the scene horse breeders stable managers and horse carriage builders are freaking out so what do they do they say the technology behind the automobile is the pneumatic tyre we would love to adopt this technology we will introduce pneumatic tires to all our horse carriages and this will preserve our investment in horses guess what pneumatic tires are great but what’s really interesting about the automobile is the no horses part it’s the actual internal combustion engine and if you say yes we like that but could we put a horse in front you’ve missed the points blockchain is that blockchain is saying pneumatic tires are the future but this whole internal combustion engine is a fad that will either die away on its own or we will lobby government to ban it that’s where we are with blockchain you

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