SINGAPORE: For the past few years, we’ve been inundated with news on cryptocurrencies, blockchain, non-fungible token (NFT) and the metaverse.
But, blockchain’s history dates back to more than 10 years ago, when it was introduced as the technology underpinning Bitcoin in a white paper published under the anonymous Satoshi Nakamoto in 2008.
Since then, with the rise and fall of cryptocurrencies and blockchain, we’ve seen a shift towards the potential of such a technology across multiple industries, ranging from e-commerce, banking, and even audience engagements and royalty payments.
However, alongside this emergence is the bad reputation surrounding cryptocurrency, which is often associated with words like scam and fraud. Add to that a heavily speculative market and a lack of transparency in processes and transactions, and it’s no wonder crypto imploded in 2022.
But it is necessary to be clear about the fundamental difference between cryptocurrencies and blockchain technology, and whether it is indeed possible to utilise blockchain for good.
At its most basic, blockchain acts as a digital ledger of information that cannot be easily tampered with, hacked, or cheated, with such a feat made possible through the duplication and distribution of data across the entire network of computer systems on the blockchain.
On the other hand, cryptocurrencies are a digital currency created using encryption algorithms that allows for highly encrypted transactions, making all exchanges of the currency highly secure. Additionally, many cryptocurrencies also use blockchain for managing and recording transactions, acting as an accounting system that tracks where, when, and to whom donations are distributed, thereby encouraging transparency.
Such a trait also makes them decentralised in nature as compared to traditional currency, which are typically managed and controlled by a central governing authority.
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