Commentary: Don’t let the crypto meltdown cloud blockchain philanthropy

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SINGAPORE: In recent years, we have been inundated with news about cryptocurrencies, blockchain, non-fungible token (NFT), and metaverse.

But blockchain’s history goes back more than 10 years, when it was presented as the technology underlying Bitcoin in a white paper published by the anonymous Satoshi Nakamoto in 2008.

Since then, with the rise and fall of cryptocurrencies and blockchain, we have seen an evolution towards the potential of such technology in several sectors, ranging from e-commerce, banking and even audience engagements. and royalty payments.

However, alongside this emergence is the bad reputation surrounding cryptocurrency, which is often associated with words like scam and fraud. Add to that a highly speculative market and a lack of transparency in processes and transactions, and it’s no wonder crypto is imploding in 2022.

But it is necessary to be clear about the fundamental difference between cryptocurrencies and blockchain technology, and whether it is indeed possible to use blockchain for good.

In its most basic form, the blockchain acts as a digital ledger of information that cannot be easily tampered with, hacked or tricked, such a feat being made possible through the duplication and distribution of data across the world. network of computer systems on blockchain.

On the other hand, cryptocurrencies are a digital currency created using encryption algorithms that enable highly encrypted transactions, making all exchanges of the currency highly secure. Additionally, many cryptocurrencies also use blockchain to manage and record transactions, acting as an accounting system that tracks where, when, and to whom donations are distributed, thereby encouraging transparency.

Such a trait also makes them decentralized in nature compared to traditional currency, which is usually managed and controlled by a central government authority.

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