This archive report was first published on 7 July 2019.
Published on July 7, 2019, a common misconception in the cryptocurrency space is that bitcoin and blockchain are one and the same. However, this is far from the truth.
Bitcoin is a cryptocurrency, while blockchain is a digital wallet built on trust, offering unparalleled security and speed. Unlike traditional transactions, blockchain eliminates the need for third-party involvement, resulting in no ledger fees.
One of the key features of blockchain is its decentralized nature, meaning it operates outside the realm of government or central bank regulation. This is made possible through the use of encryption, which secures transactions with a unique key.
The architecture of blockchain is based on a mathematical algorithm, with all transactions recorded on a public ledger that can be viewed in real-time by miners. This allows for fast transaction processing, with some systems capable of validating transactions in a matter of seconds.
Cryptomining is the process by which transactions are verified and new blocks are added to the existing blockchain ledger. As a game-changer in the digital currency and assets space, blockchain is here to stay, with no physical currency involved.
Interestingly, the modes of operation of blockchain and Libra, Facebook's digital currency, share similarities. However, the main distinction lies in the fact that Libra will be built on mobile apps, setting it apart from blockchain.
— Joseph Ndung'u, Nairobi
