Distributed systems expert Andreas Antonopoulos: Without Bitcoin, blockchain is nothing

Andreas Antonopoulos recently gave a talk about the relationship between Bitcoin and blockchain (video). Some people believe that the two can be completely separated, but the reality is different. In fact, some industry experts seem to think that Bitcoin will die, while blockchain, the underlying technology, will be a great success.

Essentially, it is incorrect to think that Bitcoin and blockchain will be a complete success or failure. At their core, Bitcoin and blockchain are a revolution that gives people a lot to think about. Some people don't care about the intentions brought by this concept, while others seem to be the real evangelists of this concept.

It all comes down to understanding the nuances of what Bitcoin and Blockchain are. Many people have been thinking about the same question but have failed to come up with a suitable answer. Bitcoin is the first blockchain, but it is much more than that. It brings permissionless innovation and is neutral in nature.

Blockchains don’t work without Bitcoin or proof of work

Without Bitcoin, there is no blockchain. Similarly, without blockchain, there is no Bitcoin. Cryptocurrency is essentially open, borderless and censorship-resistant, which makes it powerful. But at the same time, critics believe that this is also its biggest weakness.

Bitcoin has never required permission, and some experts still believe that the concept of Bitcoin should never have been allowed to exist in the first place. Today it is here, and it is not going away anytime soon. Although attention has turned to blockchain in recent times, blockchain is not the only cog in the Bitcoin machine.

Bitcoin is unique in how it uses an open blockchain to connect unbanked and underbanked areas. No large investments are required, and all people in these areas need is a smartphone with an internet connection. Only one open blockchain is essential, and that is the Bitcoin blockchain, although it may not dominate forever because it is not perfect either.

Bitcoin can scale to a secure, multinational network worth $7-10 billion, has been running for 7 years now, and no attacks on its core protocol have been successful. People have been trying to attack Bitcoin since day one. Bitcoin is a $7 billion honeypot, a very attractive target, but no one has ever succeeded.

Banks are looking to build exciting applications for blockchains that they want to adopt. But having just one blockchain is not the answer, as it leads to a flawed consensus algorithm. There are a lot of questions that need to be answered when banks say they 'have a blockchain', but they don't necessarily understand the limitations of 'just one blockchain'. Blockchain itself does not automatically bring everything people want.

Many financial experts look to custom blockchains as a solution to ensure that everything is tamper-proof. However, this special feature is guaranteed by proof of work, which is something that most private blockchains do not do. Immutability, censorship resistance, and permissionless innovation are characteristics that can only be found in open blockchains used by cryptocurrencies.