It’s time to get down… down with blockchain that is. NFT’s are a hot topic right now along with the metaverse, bitcoin, cryptocurrency and yes, blockchain. We’ve touched on the first two of these but not these last three. When we started down this rabbit hole our first question was, what is the difference between cryptocurrency, bitcoin and blockchain? This is what we found. Blockchain is the technology that enables cryptocurrency. It’s the tech that also facilitates NFT’s. The formal definition of cryptocurrency is: “the medium of exchange created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary units and to verify the transfer of funds. Bitcoin is the most common” (PWC). These are the differences between the three to clear up any confusion. According to Harvard Business Review, block chain could solve problems for record keeping since they are protected from deletion, tampering and revisions. These records could be kept as embedded digital codes that are stored in a database, called the blockchain. Basically, blockchain could be the future of record keeping, so it’s not just all about the cryptocurrency here. Blockchain is transparent since every single transaction in its history can be tracked. The blockchain can even be automated with algorithms removing the need for certain parties to be involved externally. It is quick and efficient as well as extremely secure. It seems that there are a ton of benefits to blockchain technology so why haven’t we switched over yet? Well, it’s a lot more complex. There are some barriers that will take time. Peer to peer networking was introduced in 2008. It could take decades to take hold and evolve into a place where it changes the landscape of transactions. Until then, keep an eye on this topic in an everchanging system as it evolves.
