Debate- Blockchain vs Bitcoin

Blockchain vs Bitcoin

The bitcoin blockchain was both an economic and a computer science innovation, as it includes the combination of various existing technique that wasn’t in that way ever.

But the new debate arises of using blockchain without including tokens in it, which will serve a different purpose than bitcoin blockchain. While people involved in crypto make fun of token-free blockchains because they can’t provide censorship resistance and decentralized security through proof-of-work. Fintech people laugh at public blockchains because they are slow, expensive and unsuitable for traditional finance.

But we know both the people are right in their place as the bitcoin transactional model is simple but powerful. Every bitcoin transaction has a set of inputs and a set of outputs. Each input “spends” one output of a previous transaction. All of the bitcoin in a transaction’s inputs flow into that transaction and are distributed across its outputs according to the quantities written within. In this way, transactions form a multi-way connected chain which terminates at the “coinbase” transactions in which new bitcoins are created. The network requires a mechanism for reaching consensus about which transactions are valid, and this is what the blockchain does.

Specifically: If two transactions attempt to spend the same output, then only one of those transactions will ultimately be accepted. A blockchain acts as a unified mechanism to detect and prevent these conflicts across the network.

The blockchain is structured as a series of linked blocks, in which each block contains a set of transactions that don’t conflict with each other or with previous blocks, starting from the first block created in 2009. In theory, the chain could contain a series of individual transactions, but by grouping transactions into blocks, we gain a number of efficiencies that make the scheme more practical.

Basic problem comes in operating a decentralized blockcahin without the use of cryptocurrency as, without a cryptocurrency, there is no way to incentivize decentralized mining of blocks. Although it can be achieved easily in permissioned blockchain but then it mining of blocks won’t remain decentralized anymore.

So debate arises on-

Are these permissioned, token-free shared ledger systems really worthy of the name “blockchain”?

As these don’t provide decentralized network for which blocks mining and centralised party is involved in it!