Can Cryptocurrency And Blockchain Fully Regulated By The Authority?

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Bitcoin Born As Pioneer of Cryptocurrency And Blockchain System

[The emergence of Bitcoin blockchain in 2009 were issued by Satoshi Nakamoto, the person who actually we do not know about him or his identity has given a great impact in digitally and cryptography world. Many people did not expect, that idea about digital money which brought by Wei Dai who has released about b-money and then followed by Nick Zabo with his bit gold and smart contract concept, to be accomplished by someone we know as Satoshi Sakamoto. Then bitcoin as cryptocurrency which based on Bitcoin blockchain born and to be made as open source so people around the world can imitate and adopt this system. The openness to adopt and use Bitcoin script have been made Bitcoin as pioneer d cryptocurrency and blockchain system. This openness gave opportunity the rise of other variants of cryptocurrency such as litecoin, dogecoin, ether esc.

The bloom of Cryptocurrency, Blockchain And Smart Contract System

After the success of The Ethereum blockchain system was proposed by Vitalik Buterin in late 2013 and then went live on 30 July 2015. This system produces a new breakthrough of cryptocurrency and blockchain system. This blockchain system give opportunity the smart contracts idea to be implemented on the real system using Ethereum blockchain and called as ERC-20, which proposed by Fabian Vogelsteller in 2015.

The Ethereum blockchain and ERC-20 system also gives an opportunity to other people who expert in coding, computer science and cryptographic to make many new variants of token based on Ethereum blockchain. Be careful about terms of coin and token, these things have different meaning. Coin is referring to be made on certain different blockchain system but token is produce from same blockchain system. After the development of Bitcoin and Ethereum, many people race make tokens and coins, then offer it as ICO (initial coin offering (ICO) or initial currency offering).

The ICO itself has a purpose to avoid regulation when some people try to get funding for their own startup, so the developer of startup able to get fund by releasing a new coin or token and offer it into ICO market which literally known as a free market because there was no authority or government to regulated that. The startup developer use ICO to avoid intermediaries and compliance such as bank and goverment institution because they can get fund by directly from users and investors. So that is why the ICO give opportunity cryptocurrency, blockchain and smart contracts system become bloom.

Can Cryptocurrency And Blockchain Fully Regulated By The Authority?

In one side cryptocurrency and blockchain cannot be regulated by a government, this has meant
all people able to make blockchain and cryptocurrency system because the core script (Bitcoin) itself open source, everybody can use that script and make several changing or make it into a different variant. The regulation only touches copy right these variants to protect them from imitation on their blockchain system, such as Ripple.

The raising of ICO fans, make several people make this occasion an opportunity to make fake startup or gambling on their own startup. Many fake developers promote their coin or tokens in many cryptocurrency and blockchain community to attract investors to invest on their fake startup or sometimes this developers only make startup as trial and error which is meant when they can run away and left their own startup without responsible. So that is why many governments prohibit their citizen to be active in ICO, such as China, Pakistan esc.

The transaction on the cryptocurrency which gives freedom on an anonymous transaction, and permission to the users sending their fund without a third party to intervene such as the bank. So we cannot avoid this kind of transaction because this is one core of blockchain system but remembered anonymous does not mean cannot be traced, we able to trace the transaction on blockchain system because this system has openness system also as core character blockchain system. Then do not forget that the decision of changing on certain blockchain system only can be approved by miners or witnesses who active to maintain the nodes blockchain system.

In other side government able to regulate and make certain regulations for exchanger and their user. This means the government only able to intervene in the transactions of cryptocurrency against fiat money. So that is why cryptocurrency can not be fully regulate by authority.(hpx)

Note : Suggestion is welcome.