Demystifying Blockchain in the Age of Disruption
It seems like blockchain and cryptocurrencies are hot topics these days. I have friends who have Bitcoin — one even gave me 0.1 BTC as a Christmas present! I’ve also heard of other cryptocurrencies/coins in the past — other than these, I wasn’t very familiar with the concept. I have to admit that I knew little about blockchain and crytocurrencies until I attended MAP’s general membership meeting last July 4, 2018.

Mr. Tom Menner, director for Solution Architecture in Asia for R3 Singapore, was the day’s speaker. I will not claim to be an expert after just an hour’s session on blockchain and cryptocurrencies, but it definitely made me less confused than I was before I went in!

Here are my key takeaways:

1. It all started with a white paper.

In 2008, Satoshi Nakamoto (just a pseudonym) wrote a white paper entitled Bitcoin — a Peer-to-Peer Electronic Cash System, which explained that Bitcoin makes transferring value automatic, anonymous, and digital. While anonymous, these transactions still have to be recorded in a ledger that cannot be changed. It was in this white paper that two concepts were introduced: cryptocurrency and blockchain.

Credits: Janine Mapa

2. Blockchain and cryptocurrency are two different concepts.

At first I thought that blockchain was synonymous to cryptocurrency — but I was wrong. According to Tom Menner, blockchain is “a distributed ledger that records transaction data between multiple distrustful parties automatically and in a verifiable and immutable way.” Basically, it’s a growing list of entries or “blocks” that is secured using cryptography. This ledger delivers one immutable version of the truth. Once a block is added, that block cannot be modified.

Cryptocurrency, on the other hand, is “a digital asset system designed to work as a peer-to-peer medium of exchanging value and that uses cryptography to secure transactions, control creation of additional units, and verify the transfer of assets. The value of cryptocurrency is set by scarcity, utility, and supply and demand.”

Credits: Janine Mapa

3. Is crypto and blockchain the future? We don’t know yet!

This technology is relatively new. While there are solid use cases for it, it also has its limitations. For one, it cannot replace credit cards and other payment systems yet. Visa, for example, can handle over 5,000 transactions per minute — blockchain isn’t designed to do that. At the same time, the value of this currency is still fluctuating and it’s still too early to tell if investing in cryptocurrency will yield actual results. It’s still a maturing space, but a very exciting space to watch as well.
['Janine Mapa']
['Ledger', 'Finance Management', 'Cryptocurrency', 'Blockchain Technology', 'Bitcoin']