TIM eMagazine Volume 4 Issue 2 | Page 66

Tech What Bitcoin is all about (and how it may benefit PHL users) Credit: Philip Ortaleza The book launch of Bitcoins and Blockchains for Beginners which was conducted by the author himself IT Specialist and Financial Risk Manager Earl D. Dorado W  hat is fast becoming so ‘in’ in this world of e-commerce and e-investing are the rise of the so-called cryptocurrencies, of which one of the more prominent of this form is Bitcoin. But what exactly is Bitcoin, the common man would ask—even though he knows that it has been existing for quite some time now. This and much more were discussed during the book launch of Bitcoins and Blockchains for Beginners which was conducted by the author himself IT Specialist and Financial Risk Manager Earl D. Dorado that has held last May 27 at the Blockchain Space Acceler8 along Legaspi Village in Makati. The venue is the hub of numerous blockchain meetups, with office space for companies and enterprises developing blockchain technology. “Before one will venture into Bitcoin and blockchain, it takes full appreciation of this form of cryptocurrency which requires knowledge of computer science, IT, economics and finance,” stressed Dorado. “But lest be assured that Bitcoin is not a form of scam.” As of press time, Bitcoin has more than doubled its price from around US$3,000 (P150,000) last December to a whopping US$7,000 (P350,000)! Which makes it a potential target for scammers. Despite Bitcoin’s appreciating value, Dorado equally firmly that those scammers are indeed barking on the wrong tree. This in line with reports of the rise of people involved in pyramid scams that use Bitcon as their means in their ‘get rich quick’ schemes—of which the irony of it all, as he added, is that these scammers are not even Bitcoin users!  Such people were convicted but it caused apprehension for others to mention the word Bitcoin. “There is a need for understanding on how Bitcoin operates. Present 66 online payment systems are prone to hacking due to a centralized entity which contains all the money and protected information. Then there is the decentralized approach, of which is also a challenge as these can be copied. And this is where Bitcoin steps in,” reasoned out Dorado. The Bitcoin edge lies in its utilization of a revolutionary technology that make it much more efficient, tamper-free and generating more peace of mind for the end user: blockchain technology. In addition to seamless remittance payments, blockchain has contributed to the amazing, hack-free element that has made more and more people be drawn to Bitcoin. Designing itself as an alternative, peer-to-peer electronics cash system, Bitcoin traces its origins to a white paper written by a person of mystery whose code name is Satoshi Nakamoto. Bitcoin’s two-fold approach, which makes it very much less prone to hacking lie in: decentralized transaction records, of which the network itself has copies of the ledgers of transaction records spread across multiple computers. Even if hacking occurs in a computer of one place where its copy or records get tampered, that ledger will be invalidated by those from the other places of the entire network; and sequential transactions can be detected by the network, as Bitcoin transactions are stored in an ‘electronic transactions’ format. However, because such transactions include the timestamp records with the precision of a fraction of a second, the network can detect and reject attempts to make transactions that will cause an overbalance.Moreover, the block of transactions contain a page in the logbook. And the Bitcoin network itself is compared to a country with interconnected urban and rural places; each place does their own thing, yet are governed by similar laws rules and principles enforced across the country. This is also the rationale behind the blockchain technology where Bitcoin derives its strength from. “Thanks to Bitcoin, money (as well as other forms of payment) can be