Leonardo Gomez Mariaca - 2022-06-12
The first principle to understand and grasp the challenges posed by NFTs, as well as for cryptocurrencies, are decentralised. This is the idea that separates the notion of electronic money, which has long been used by everyone, and a cryptocurrency. Today, our system essentially revolves around banks: when you buy a product in a shop, the price of the product is debited from your account, while the money goes to the account of the seller. The banks have an authoritative role, as they validate the payment, control the smooth running of the transaction, and keep a record of it. This system is centralised around the banks, as there is clearly a form of hierarchy: the banks that handle the transfer of money, and below them, the customers.
Leonardo Gomez Mariaca - 2022-06-13
In the last article, we discussed the crucial principle of decentralization on which the functioning of all crypto currencies is based. Here, we will go deeper into the subject around the concept of the blockchain, and in order to do so, we will have to talk about bitcoin. As we saw earlier, the security on which the whole principle of decentralization relies is to make the transaction information public, so that everyone can verify daily that the currency he or she receives is indeed real. In the example we used in the last article, we talked about a large whiteboard on which the transaction should be written down for everyone to see. If we transfer this board to the digital world, we discover the blockchain. Each bitcoin is traced, followed from owner to owner, and it is this information that is kept public to avoid counterfeiting. Of course, the owners are anonymized behind account numbers, but they are still identifiable. To draw a parallel to understand the revolution in the financial system that this implies, let us imagine that the banks published all their transactions on the Internet. Nowadays, this would be an impossible violation of banking secrecy.