One of the most common questions I am asked when I am talking to somebody who is very keen to understand blockchain and cryptocurrency but doesn't know much yet is when they ask you know I've heard that people love blockchain but hate cryptocurrency what do you think about that and I think that's a fair question if it does not come loaded with prejudice and you know loaded with an expectation of only one answer
I think it's a fair question I'll give you a somewhat simplistic answer but indicative of how things are currently architected you would think of the blockchain being available in two versions a private blockchain where the database and technological architecture remains the same as that of any other blockchain but there's a certain amount of control of it there's a certain amount of ownership which could be owned by one entity or a co g or clause user group of several entities so this is called a private blockchain and then there's a public lost generation nobody owns and anybody can participate in it and contribute their computational power their governance their voting to make this paradigm work better the private blockchain can work without a token the reason is what does it token do a token introduces two fundamental elements to a blockchain one it introduces an incentive system for people to participate in the blockchain to begin with and second it introduces a governance mechanism let's especially look at the forward somehow there are two banks who are electronically communicating money with each other transmitting monies with each other this first Bank has a huge infrastructure there are human elements like engineers and then there is computers there is cloud architecture on one end and likewise on the other end money is being spent and transacted and if you were to substitute all of this with a public blockchain wherein there is nobody who owns the network or brings in computing power we still need a computing power to run this system right so where does that come from it comes from people who choose to participate in the public blockchain network and why do they choose to participate in it of course they believe in it the thing this is the right thing to do but they also have an economic incentive in doing that right so the presence of a token which gets created participated and awarded during authentication of transaction is one of the biggest reason to have cryptocurrency or crypto tokens the other one is that people who own these tokens or the computational power let's call them nodes can then vote with their actions as to how they want the network to emerge now if you have a centralized system then there are certain applications so for example I believe that interbank transfers could be a interesting application for a private blockchain and then on the other hand we have the entire notion of a public blockchain where there is no authority and people can do whatever they want the moment you say you want to token less architecture what you are talking about is a more private controlled centrally administered blockchain and I think and forget my eyes and
I don't want to some of them modest here but I think that takes away from a lord of the benefits that the public blockchain brings in let me extend this further I think that the internet was a tech marvel ecommerce cloud computing but tech technological marvels mobile devices mobile connectivity our technological morals blockchain is not as much of a technological marvel as it is a social marvel that means it is not so difficult to implement understand it is difficult for us to imagine that the world will work in a way where there is no central authority or you don't need to trust a counterparty and can just trust a system called the blockchain so blockchain is an architecture it is a platform of course it has to be taken Abel but the block chair is an architecture which enables a great amazing very empowering and democratize way of existing in society and a lot of those social benefits some would say on all of those social benefits but at least a lot of those social benefits are taken away when you are moving to a private blockchain architecture right so yes you can love the blockchain the cryptocurrency because then you are talking of the private blockchain and you are depriving your company your country or whatever it has you have influence over you're depriving that of the many benefits of the public blockchain