Blockchain illustration piloting
[photo/crypto-economy.net]
Bitcoin was the first viable option of a digital alternative to fiat currency (legal tender) after a myriad of attempts since the invention of the internet.
However, as the craze surrounding cryptocurrencies rage, the technology behind this cryptocurrency blockchain is actually being considered next big thing after the internet.
Some analysts say its impact will be so disruptive, calling it the ‘internet of value’, others just call it an accelerator of international trade. Blockchain, the technology which powers bitcoin transactions is famed for allowing records to be stored separately but are linked using a secure code making it impossible for anyone to modify data.
To explain how this works, consider transactions on your computer (let us call it a “ledger”). Then there are government accountants (let us call them “miners”) who have the same file on theirs (meaning it is also “distributed” to various parties).
Immediately you transact your computer automatically sends an e-mail to each accountant to inform them. At this point, each accountant rushes to be the first to check whether you can afford it (and of course be paid their salary “Bitcoins”).
Bitcoin has, however, had issues, with central banks warning that it portends extremely high risks due to typical fluctuations and significant price volatility.
That the unregulated environments brought about by the blockchain technology also makes investments in bitcoins seem quite risky and highly speculative leading to calls for extreme caution. However, they all agree that the future of blockchain is very bright.
In Kenya, ICT Cabinet Secretary Joe Mucheru says the ministry is setting up a task force to explore how blockchain technology can be harnessed to improve transparency and efficiency in the public and private sector.
Mucheru says we should not be left out as other countries are gobbling up the technology. “We missed out on the internet. We must not be left out on the blockchain,” he says.