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I recently spoke to some venture capital firms, regulators, sovereign wealth fund reps. And something is still not very clear to everybody.
Bitcoin is a type of Blockchain
The word “coin” in bitcoin, associates itself to some financial use case. That maybe true in 2009 when the first person used bitcoins to successful buy pizza. And from then on, you have companies like Bitpay, Coinbase, even ourselves, CoinPip, exploring the first few uses of the Bitcoin technology, and since then it has been stuck in people’s minds that Bitcoin is currency. But this is not true.
Bitcoin is a type of blockchain, and the first use case for this technology was to use it as a currency. Today there are many companies discovering new uses of the Bitcoin blockchain that has NOTHING (and I repeat..NOTHING) to do with payments. Bitcoin should be called BitTract (Bitcoin Contract) or something different today.
So…what is a blockchain?
The definition of blockchain from Investopedia is WRONG. I repeat WRONG! This is what it says:
A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.
Firstly, a blockchain is a public ledger of transactions, not bitcoin transactions. Secondly, the last line about linear and chronological order, it depends. If someone can find a way to log transactions in a non-linear way, that can work as well. But blockchain is certainly not a public ledger of Bitcoin transactions. A bitcoin blockchain is a public ledger of all bitcoin transactions. A litecoin blockchain is a public ledger of all litecoin transactions.