Bitcoin and Anonymity

zorroThe entire concept of crypto-currencies is profoundly polarizing. Most people have grown up with a strong intuitive notion that currency should only be controlled by national governments. No one but the Treasury Department of the United States has the right to directly create additional money, for example. Huge teams of people are out there working to track down and punish anyone else who tries. In that context, it’s natural that many people would react with a certain amount of suspicion to the idea of currency existing outside of national control. A closely related, and equally polarizing, issue is the anonymity that the platforms offer. Continue reading

Why Does Bitcoin Needs its Blockchain?

blockchain-wallet-graphicOne of the things that has made people extremely excited about the idea of crypto-currencies is that they can be simultaneously anonymous and secure. Through the use of math and computer protocols, the people who came up with these systems managed to construct a means by which people could exchange wealth without needing to reveal who they are and yet still be certain that the exchanges are valid. For example, even though a Bitcoin does not have a physical presence in the world, they needed to make sure that someone wouldn’t be able to make perfect digital copies of it and spend the same one repeatedly. This is where the blockchain come into the picture. Continue reading