Of Crypto Coins and Blockchains in Caribbean Business

The Difference Between Blockchain and Cryptocurrencies

Over the past couple of weeks, local dialog about the phenomenon that is bitcoin and by extension cryptocurrency and blockchain has seemingly escalated. As is normally the case with new technologies, especially those that are touted to fundamentally change the very fabric of how we do things, there is a lot of information and misinformation floating around. This, in many cases, is borne out of a lack of understanding in many circles about these new technologies. As such it is important for those who may be in the know to shed as much light as possible so that the public can be informed and make informed decisions.

This series of articles is meant to shed as much light as possible on the subject of Blockchain and Cryptocurrencies so that the public can be informed and make informed decisions.

Blockchain, Bitcoin, bitcoin, and cryptocurrency – What’s the difference?

Bitcoin is a cryptocurrency and global payment system that is generally referred to as the first decentralized digital currency because it operates without the need for a central authority (e.g. a bank). 

Bitcoin is the creation of a group of ingenious minds who go by the pseudonym Satoshi Nakamoto. It first came to prominence in 2008 after the global financial meltdown that occurred during that time. 

The network on which Bitcoin runs is a peer-to-peer network in which transactions are conducted directly between users and cryptographically verified by nodes (computer systems) that exist on the network. Every transaction is recorded in a public distributed ledger. It is this ledger that is called the blockchain. 

So, in simple terms blockchain is the technology on which Bitcoin runs but they are not one in the same because blockchain itself is used for and can be used for many other types of transactions that have value of some sort.

The difference with the B’s in bitcoin

So next let me quickly highlighting a little-known tidbit…There is a difference between Bitcoin with an uppercase “B” and bitcoin with a lowercase “b”. Bitcoin with a capital “B” is typically associated with Bitcoin the protocol and payment network while bitcoin with a lowercase “b” refers to bitcoin as the currency. So, when you speak about how much of the currency was transacted, or you’re focusing solely on the currency “b” and not the payment network or protocol “B”.

Next week we will look more closely at Blockchain Technology.

Trevor Forrest is CEO, 876 Solutions, and a Certified Blockchain Architect with over 29 years of experience in the IT Industry in Jamaica and overseas.
trevorforrest@876solutions.com

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