With everything suddenly becoming digital, like communication, watching, learning, reading, shopping, gaming, etc., it's no surprise that finance is already catching up with the trend. And no, I'm not only talking about GCash, PayMaya, or even digital banks like Unionbank or Tonik. I'm talking about cryptocurrencies.
Before we jump into Bitcoin, let's define these three terms: Fiat money, Digital currency, and cryptocurrency. This module includes 2 parts with a dive on the different types of currencies available in the market and what cryptocurrency is in particular.
The idea of Bitcoin was first introduced during the Global Financial Crisis back in 2008. On October 31, Satoshi Nakamoto uploaded their authored whitepaper named "Bitcoin: A Peer-to-Peer Electronic Cash System." Here Satoshi Nakamoto laid out their idea for a decentralized digital currency, taking out the need for trust and intermediaries in transactions.
Bitcoin is designed to let you store, receive, and send money to anyone in the world without the need for any bank or company. Before Bitcoin came along, you always needed the likes of BDO, Cebuana Lhuillier, or Western Union since they are responsible for verifying the money you send and receive.
You can think of the blockchain as a chain that ties all the transactions together one after the other. The blockchain is immutable, decentralized, distributed, secure, and fully verifiable.
Bitcoin's blockchain is based on a Proof-of-Work (PoW) consensus mechanism. Proof-of-Work helps keep the network decentralized, verifiable, and secure.
In the previous chapters, we discussed how bitcoin is a new form of currency and a way of transferring value between people. Now that we understand how bitcoin works, let's see how it actually fares against other forms of currencies.
Aside from being a reliable form of money, Bitcoin also helps solve several problems that affect you, me, and everyone else in the world. Some of these problems include trust systems, authorization, and transparency. Let's take a quick look at what these problems are.
Suppose you decide to venture further into the cryptocurrency space. In that case, you'll be met with a few obstacles like crypto jargon or slang. But, don't worry! Let's break them down one by one so you don't feel left out!
Now that we've covered Bitcoin from the inside out, we're pretty much all wrapped up here. The final thing we need to brush on is how to properly invest in bitcoin and other cryptocurrencies. Here are some general reminders from the Bitskwela team.
You may have heard stories about record-breaking sales for JPEGs worth tens of millions of dollars or celebrities and friends changing their profile pictures to colorful and strange-looking monkey avatars. Worry not, because Bitskwela and Likha are here to help you understand what those images actually are!
Although NFTs have only recently gained popularity, this kind of technology has been around for quite some time. Given all the growth that has happened with NFTs, it's hard to believe the youngness of the space! Let's look at the events that took place when it all started.
The next question that may come to mind is, “What other properties do NFTs have aside from non-fungibility?” A lot, actually! These include, but are not limited to, uniqueness, indivisibility, authenticity, portability, and programmability.
Innovators continue exploring other use cases and are constantly reshaping and redefining what an NFT is. With that being said, let's take a quick look at what these different use cases are.
Despite how promising NFTs are, it's important to realize that NFTs also have flaws and limitations, especially since it is still very young as a technology. These limitations may be considered mostly temporary and would be solvable through technological advancements and greater adoption.
Likha is a Filipino-centered NFT marketplace and gallery that allows Filipino artists and brands to easily mint, market, and manage their created NFTs.