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
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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