TIM eMagazine Vol.4 Issue 2
transferred efficiently and seamlessly from one place to another anywhere
in the world without a central third-party like a bank of remittance
company monitoring it. As everyone in the Bitcoin network has a copy of
such verified transactions (and can be verified in a dedicated website such
as http://blockchain.info ) hackers will have a very, very hard time indeed
tampering those records from different computers around the world—
and none of them were successful in hacking these!
“The best incentive for Bitcoin is that they are part of the network that
has become unhackable; it also becomes valuable over time as
It is practically impossible to tamper as the Bitcoin network has never
been hacked.
Its unhackability makes transfer of money without a third party much
smoother due to its robustness.
Transactions can be verified.
Bitcoin runs 24/7 anytime, anywhere in the world.
“Of course, Bitcoin is NOT a scam,” emphasized Dorado. “What you get is
instead an alternative global payment system with increased security and
censorship resistance due to its decentralized nature.”
Unknown to many, Bitcoin is also regarded as a very practical, cost-
efficient hedge against hyperinflation, of which Dorado points out is
something that central banks do not want to happen to their economies.
Such is the case of Venezuela, whose hyperinflation sets the very precise
frame of mind for people to invest in Bitcoin where, thanks to it, they are
able to buy their food and other basic
Stressed Dorado: “Bitcoin has some sense of stability where central
bank currencies have failed. And because it is borderless, it is also a hedge
against currency controls, especially in countries where export of their
own money is highly regulated.”
For their part, altcoins (or alternative coins) are another form of
cryptocurrency that is very much different from Bitcoin, as these have
their own distinct blockchains and computer networks. The emergence
of altcoins highlighted the fact that payments transferring money is not
the only thing that a blockchain network is useful; there are, in fact, real
genuine use cases that extend beyond payment and store of value.
“There are various categories of altcoins. We have the smart
contract ones, which are used in making/running smart contracts,
whereas two or more parties can create a smart contract program
on a public blockchain which will be executed successfully, provided
that some events occur; the having your own private blockchain ones,
where private blockchains can be created by companies using specially
designed platforms of which they buy the respected altcoin from the
Participants who attented
the “Book Laumching” held
recently
Credit: Philip Ortaleza
Credit: Philip Ortaleza
For its part, while the Bangko Sentral ng Pilipinas,
through its Deputy Governor Diwa Guiniguindo, ex-
pressed that there are several challenges confronting
the use of cryptocurrencies such as Bitcoin
open market—similar to the Software as a Service (SaaS) model, whereas
enterprises pay for the software/hardware as they use it, rather than
spend one large lump sum payment; the identity verification ones of
which governments and private companies can use data in a more
accurate, faster way without the need of getting into red tape as this
eliminates the need of communicating with another external entity
for verification; the supply chain/logistics coins, which are helpful in
verifying the authenticity of any raw material or purchased product—thus
preventing the proliferation, or most precisely, the purchase of fake goods
as such authentically-produced goods are subject to bar codes/stickers
which are recorded in the blockchain; cryptocurrency spot/ futures
exchange coins, which function like those in stock exchanges except that
Bitcoins/altcoins are traded; decentralized social media; decentralized
e-commerce platforms; and payment/remittance coins, which facilitate
quicker conversions between cash and/or cryptocurrency, among others,”
added Dorado.
But what are the benefits and drawbacks of Bitcoin and altcoins?
“First the drawbacks. There is the cost in migrating from one system into
a blockchain system. Then there are the costs of running many computers
at once, which in turn, triggers lesser transaction capacity. But for every
negative aspect are the positive points: Lower cost of delivery service
due to lesser verification processes; faster, more reliable service; tamper-
proof computer systems whereas, thanks to blockchain technology
validation comes from various computers of the network rather than one
computer in one place; and lesser system downtimes whereas, because of
decentralization, even if a computer is turned off for routine maintenance,
the rest of the network can still operate—and fetch the most updated
network blockchain copy to become operational .
“In the end, let the market forces decide. But it pays to first thoroughly
understand, study then fully appreciate how Bitcoin and altcoins work,”
Dorado graciously summed up.
For its part, while the Bangko Sentral ng Pilipinas, through its Deputy
Governor Diwa Guiniguindo, expressed that there are several challenges
confronting the use of cryptocurrencies such as Bitcoin—asking on
whether these can fulfill the role of real money in the economy and if
blockchain technology can be a viable system due to its decentralized
features. He even expressed a degree of uncertainty whereas, due to the
blockchain, if the people we do transactions with will be able to make
their obligations in due time. Yet he took the time to congratulate Dorado
for the courage to come up with his book, adding, “This is indeed one of
the best tools that any ordinary person will find wise to read, as a timely
reference before making their investments in the Bitcoin venture. What
these potential investors also need is consumer protection. They also
need to exercise caution and prudence before venturing in making their
moves into the virtual system.”
67