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Thursday, 11 September 2014

Single centralized bitcoin block chain ledger versus hundreds of millions of decentralized fiat ledgers

All bitcoins exist only in the one, single, unique, completely centralized, public  block chain ledger. They never leave this single block chain ledger. Bitcoins are moved from one original key owner to another original key owner only inside this single block chain ledger. 

This aspect of the bitcoin technology - everybody agrees - is completely centralised in the one, single, unique, public bitcoin block chain ledger.

Trillions of fiat monetary units, on the other hand,  are debited and credited in any amount from 0,01 cent to hundreds of trillions of Dollars, for example, in any of hundreds of millions of completely decentralized company and other entities´ bank accounts in their hundreds of millions of completely decentralized private and public company ledgers all over the world. 

Satoshi Nakamoto could only solve the problem of preventing the double (or more) spending of the same bitcoin (by simply copying it digitally), via the age-old double-entry accounting ledger. 

Nicolaas Smith Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.