Bitcoin, Cryptocurrency, and Blockchain – ALTCOIN MAGAZINE

You might hear words like bitcoin, cryptocurrency, blockchain many times. They are the buzzwords and media’s favorite topics this year. But what on earth are they? In a nutshell, bitcoin a kind of cryptocurrency, which can be used and traded in the blockchain. And blockchain, the technique behind the cryptocurrency, is a valuable technology that can be practical and applied widely.

Cryptocurrency is a product, but the blockchain itself is the technique. Even though they are tightly bonded, we can treat them as two different things. In October 2008, Nakamoto (2008) published a paper describing the bitcoin the digital currency, which is titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. In this paper, he designs a kind of electronic cash, bitcoin, which can be recorded on a chain of blocks. After this paper, people imitate his work and design different electronic cash and different blockchains, which we call “cryptocurrency” and “blockchain”, respectively. Right now, we have a handful of cryptocurrencies such as Ethereum, RXP, and Litecoin. Some of them are designed to deliver fast global payments. And Ethereum is also the name for a blockchain open-source platform for decentralized applications.

You might hear lots of fraud and investor losses in the cryptocurrency market, but fraud came from the abuse of cryptocurrency rather the blockchain technology. The frauds mainly happened with digital tokens, which is not a real cryptocurrency. For example, Kharpal (2018) claimed a start-up called Giza used fake initial coin offering (ICO) to make off more than 2 million dollars. But this company’s cryptocurrency with the same name, Giza, is merely a token based on the Ethereum platform, the largest blockchain platform right now. It means that this company didn’t have its own blockchain but issued unregulated tokens to raise money. These tokens are not different from the virtual points issued by some restaurants and drink shops. Neto (2018) said…

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