When bitcoin and blockchain were first introduced to the world, people would often confuse the two being synonymous. However, with time people began to differentiate between them. Recently, CEO of Amber, Aleksandar Svetski, added clarity to the meaning of bitcoin and blockchain by urging people to support the former and withdraw interest in the latter.
Svetski explained that blockchain, accepted and opted by many corporations, is unable to be utilitarian as it has failed to fulfill its promises of providing security while eliminating middlemen.
He said that if operators are familiar with each other, the usage of blockchain becomes redundant. Again describing how bitcoin possessed the features people were looking in blockchain, he said:
If you’re looking to run some distributed ledger among associated parties or nodes, then that’s fine – but that’s not blockchain in the way people try and conflate it or use it to describe something like bitcoin.
Svetski stated that blockchain, often considered as a solution to the world’s problems and ideal for peer-to-peer payments, is misunderstood by the majority. He is stringent on the note that blockchain turned out to be completely different than what it seemingly promised to offer in the beginning.
According to him, blockchain is a fancy word used a few years ago by the people to bag huge sums of money through ICOs. Now, he thinks that people advocating the blockchain have missed the opportunity to raise more capital.
On the contrary, Svetski elaborated that an entity capable of dealing peer-to-peer communication in a truly decentralized manner in the absence of the third party was created by Satoshi Nakamoto in 2009. By entity, he was referring to the first decentralized cryptocurrency, bitcoin, that is the largest cryptocurrency of the world by market cap.
Although the CEO of Amber didn’t find even one use case for blockchain, Benjamin Dynkin, CEO of Atlas Cybersecurity, shared his own positive perspective regarding blockchain with BlockPublisher. He denied the notion related to blockchain that it can solve every problem. Taking a realistic approach, he said that blockchain offered a lot to several industries:
“Blockchain will be a key feature in countless industries. I believe that the use case has been defined and many large players in the space are developing blockchain solutions. I don’t think that there is a blockchain-based solution for every problem, but certainly in cases where you need an immutable single source of truth that validates every transaction by definition, the blockchain is the perfect solution (supply chain management, inventory, real estate, etc.)”
Emphasizing on the Proof-of-Work (PoW), Svetski stated that blockchain, in the absence of PoW along with economics and game theory is reduced to a glorified database. Svetski explained that blockchain, popular for eliminating central party, voids its claims even if a set of nodes operate the blockchain.
On the other hand bitcoin has a secured and immutable database architecture. Praising bitcoin, he mentioned that bitcoin is once in a lifetime opportunity that had a unique recipe, design and immaculate conception and termed it ‘the reinvention of money.’
Svetski stated that bitcoin provide society a chance to use free, open source money that is not under the influence of any central regulating body. The chance of creating such a network that after surviving in an adverse environment, is now moving trillions worth of value round the year.
Not sparing blockchain at all, he claimed that all the innovations in enterprise and public sectors called as blockchain are actually a database, data storage and business process improvements. He concluded that real businesses indulged in producing real products can’t be served by blockchain as the underlying technology behind bitcoin has not accomplished its signature claims.
Every bitcoin transaction is recorded on a blockchain, that’s why cryptocurrencies and blockchain count on each other for functionality and success. No matter how hard one tries to get rid of blockchain while availing the bitcoin services, bitcoin and blockchain can’t be disintegrated or separated. In other words, bitcoin users are always utilizing blockchain whenever they use bitcoin to transfer funds.