S25: why Bitcoin, why not?

We are going to have some heart to heart talk this time around, a few things are worisome and no one is talking about it for example

is it not concerning that the money in the bank is not yours?

Read welcome to breakfast with blockchain

Let's start with the news that got attention this week. CBN withdraw the license of 47 microfinance banks.

I con meet you say make you keep my money for me, e reach time to collect the money back, you dey talk story, is that not a concern?

If i want to buy something from the nearest shop beside me, i will go their with my cash, and no questions asked, they will sell me the products and i will pay in cash. but, because of the problems around carrying cash around, i say i will use the bank, for the bank to save my money for me, they will ask me many related and unrelated document. fine. which one con be i wan collect my money, you dey talk story.

You can see this from many view point, but Satoshi Nakamoto the originator of bitcoin said if we find a way to electronically make payment and transfer money without the bank such that it looks almost exactly like making payment physically, then we are good.

One big question you can ask is "but to buy bitcoin or sell it, you still need to transfer money from or to the bank". while that question is valid, it is noteworthy to know that bitcoin is not readily accepted by vendors, and when it does, the moment you start accepting bitcoin, you wont need the bank anymore. and this is why the banks are also finding every possible way to jump onboard.

Let's comeback to our narration; Satoshi felt that for me to achieve this principle, i need 3 things

1. i need to have a storage that is not in control of anybody, if i have that, then nobody can stop it. that technology is called distributed network.

2. Now that i have a storage, i need to make sure that every transaction is transparent, i.e. you don't need permission to check if a transaction go through or not. i.e. open ledger.

3. now that transaction is transparent, i need to make sure that it is only two willing people that want to transact that will know each other. so he introduce cryptography. the technology of hiding things or replacing

How will the new money system works

for the system to work

1. I will issue every person that want to use it two keys, the first key is the one you will share with someone else whenever they want to send you money. the second key will be used to prove that you are the owner of the first key, so that you can access whatever money inside it

2. when James send money to Tola, i need 3 people to stand as witness that James did send the money to Tola. the name i will call the witness is Miners.

3. For you to be a witness that transaction happens, you will need to contribute your computer power to the general network, and in return i will issue you new bitcoin whenever you stand as a witness that transaction happens.

4. any single time money is sent, we will record the transaction in our open ledger, and add the time it happens. that technology is called timestamp.

He finalised it in 2008, and launched it in 2009, ever since then, more witness keeps joining the network and here we are today.

Conclusion

1. Bitcoin is a technology breakthrough for the financial industry. the main concept of it is to provide an easy way to send money from one person to another. that doesn't ends there.

2. the way bitcoin is built, it makes it valid for three things

   1. To store value.

   2. As Asset

   3. As currency

get started today by downloading a wallet e.g. Trust wallet, Exodus wallet, SafePal. i hope you got to understand why not bitcoin.