For a long time, Bitcoin and blockchain have been associated with each other. This is because blockchain is the underlying technology on which cryptocurrencies run. Although there are many cryptocurrencies formed after Bitcoin, they all use blockchain, or a distributed ledger that is similar.
However, things are likely to change after MonetaGo, a US-based blockchain company, said that it is going to deviate from the traditions in order to make it more convenient for central banks.
Separating Bitcoin From Blockchain
MonetaGo indicated in a recent interview that plans were underway to separate Bitcoin from blockchain, at least for their banking sector. It is not yet clear how they will do this considering the fact that this technology remains the force behind Bitcoin.
In fact, these digital tokens are what makes blockchain what it is. When it comes to distributed ledgers, the size of network and the transactions determine the security and integrity of any unit.
Observers say that the company could have meant that they will be using an alternative blockchain platform instead of relying on Bitcoin blockchain. Since they are seeking to create banking solutions, it still remains a mystery how they will go about it. This becomes even more complicated considering that they took part in a recent pilot project with the Indian central bank.
Looking Beyond Virtual Currencies
There are media reports quoting the CEO of MonetaGo, Jesse Chenard, saying that the use of blockchain technology goes beyond Bitcoin, and that is what they want to explore. For instance, they are already in talks with several banks in India to use blockchain for remittance, payments, and trade finance statement processing. Reports show that these talks are already at an advanced stage.
Critics have argued that Bitcoin blockchain is the most stable technology for these transactions and so, it will be difficult to replace it. They also say that the network that Bitcoin controls is the largest when compared to other digital currencies. Therefore, it has a huge power that is almost impossible to wish away.
It will not be easy for other alternatives to replace Bitcoin technology. Regardless of these concerns, several projects are already underway creating a partnership between leading