Sesterce Podcast - Ep 23 - Bitcoin a New type of Money

Written by
Sesterce Team

Sesterce Podcast - Ep 23 - Bitcoin a New type of Money

Written by
Sesterce Team

Sesterce Podcast - Ep 23 - Bitcoin a New type of Money

Written by
Sesterce Team

Sesterce Podcast - Ep 23 - Bitcoin a New type of Money

It was long awaited dream of #BTC self fulfilling itself. #bitcoin is now officially legal tender in #Elsalvador and the price dip we're going to compare bitcoin to other traditional payment methods and you're going to see that bitcoin is a much more disruptive technology than you ever believed it's a new form of money that never existed before.

Here is transcript of our Podcast for you to read;

Bitcoin Vs other traditional payment methods

As Bitcoin is now officially a legal tender in El Salvador.  We're going to compare bitcoin to other traditional payment methods. You're going to see that bitcoin is a much more disruptive technology than you ever believed. it's a new form of money that never existed before. I'm going to explain why I hope you're excited but before we start make sure to subscribe to the channel for more content follow us on Twitter and like this video now without further ado let's get started.

All right so the subject of today is going to be bitcoin of course as always but we're going to talk about Bitcoin in a slightly different way. I'm going to talk about bitcoin as a new context type well and of course, what do I mean by that well you know by now that a bitcoin transaction is assigned a data structure that can be executed anywhere in the world.
Even though a lot of people think that a bitcoin transaction has to be transmitted somehow to the bitcoin network, that is not the case a bitcoin transaction has to reach the miners and be included in a block but it doesn't need to be transmitted over the bitcoin network there's nothing special about the bitcoin network. It just forwards transactions and blocks and a transaction can be transmitted over any form of communication medium the security in bitcoin is not in the transaction it is in the proof of work system, that is provided by the miners and the digital signatures on the transaction that is put there by the end-users with the keys that they hold.
So what I mean by that is that there is nothing sensitive or secret in a bitcoin transaction. So let's compare that to the actual traditional banking system and the least I can say is that credit cards are insecure by design.

Let me explain if I go buy something right now using my credit card if I go to a merchant today I'm going to transmit to the merchant through a long series of intermediaries the credit card number the expiry date and the CVV code on the back of the card each time. I'm making a payment I'm transmitting the key that allows for the payment to be executed I'm transmitting the access code to my account each time I'm purchasing something somewhere that is kind of nuts and that information is very sensitive. I mean you should like of course you know that you shouldn't give your credit card number to somebody yet this is what you do every time you swipe it and of course the information of your credit card are encrypted from the moment the credit card comes out of your pocket until the merchant receives the money the trans the the information of your credit card is encrypted from the point of sale to the merchants to the merchant's backend to visa to mastercard and to all the intermediaries in it and if at any point somebody fails to provide security and fails to encrypt the data my credit card is my is now compromised somebody can use it and there's something even worse than that is that the credit card is also stored many times it is stored for historical purposes which is a terrible idea because that creates a centralized honeypot a target for hackers to target because this information has value and of course this is what we saw with the ledger hack because they had information about people interested in the crypto industry and distort this information they didn't destroy it so hackers of course want this information to get money out of it and it's not just leisure it's everybody everybody we've seen this happen again and again and again and again and it's gonna happen again and again because there is no way to secure information if the things you're trying to hide is valuable people are going to target it and at some point you're going to make a mistake and you're going to fail to protect the data you know security experts says that there are two types of companies there are companies that have been hacked and the companies that will be hacked for the simple reason that nobody is immune to this i mean no one can invent a way to protect millions of users millions of data that is valuable for hackers you cannot protect this information so every time you sort that information somewhere this becomes a honeypot and a target for hackers and that's why bitcoin as a distributed distributed ledger is very hard to attack because there is no single port of failure there is not somewhere the data is stored it is stored everywhere and that's one of the reason that bitcoin is much more powerful as a payment method than regular banking for the simple reason that every time you make a transaction with a credit card you transmit the keys that allows funds to be withdrawn from your account

So as you can see bitcoin is fundamentally different from what exists now and what I'm transmitting is not the key but simply assigned message it's an authorization and that authorization has two external references one is to where the money is coming from by referencing and utxo and unspent transaction output on the blockchain and two a reference to where i want to send the money and by creating this transaction this signed transaction that transaction contains no sensitive data if you steal that information from if you seal the information in the transaction all you know is which address the money is coming from and which address is going to go that's it like you can't do much with a bitcoin transaction data the data itself has no value because a bitcoin transaction for example you can transmit it through a completely insecure wi-fi at your local starbucks or by a light or by paper or by emojis you can pretty much encrypt a bitcoin transaction and nobody can steal your funds on the other hand when you use your credit cards you're giving away the private key of your account you see the difference all you have to do for a transaction to pass is simply for the transaction to reach one node because once it is propagated to the network you can almost be certain that transaction if it has sufficient fees will be included in the next block or something and there is nothing that anybody can do about because a bitcoin transaction stopping a bitcoin transaction is impossible there's nothing magical in a bitcoin transaction like i said previously let's think about this for a second how can you encode a 250 bytes and transmit them across the network across any network because a bitcoin transaction is 250 bytes and that could be encoded into something that doesn't look like a bitcoin transaction you could encode a bitcoin transaction into an image you could encode a bitcoin transaction into a list of words into a list of emojis good luck stopping that how can government stop that like like you need to to cut out the whole internet to stop this you can send a bitcoin transaction through skype through Facebook messenger through acrylics through a TripAdvisor for Wikipedia article through a gpeg anything if you have a way to transmit data you can send a bitcoin transaction and no one can do nothing about it that's the beautiful part about bitcoin is that it is more secure it is open it is global it is decentralized and is essentially resistant and when you compare that to credit cards in the banking system it pales in comparison even tyrannical governments cannot stop their population from using bitcoin and from transmitting bitcoin because you can transmit bitcoin through radio wave through satellites through any medium of communication and good luck stopping that it's simply impossible so what that means for the world that means that for the first time we have separated the medium and the message because think about it in the traditional banking system you have payments rails for small payments you have payment rails for business to business payments you have payments without for large payments and they are disconnected right you cannot wire transfer a penny right you cannot pay a yacht by cash or it's going to be really hard to to pay it you're going to pay your house with your credit card you see what i mean so we have all these different networks that are interconnected in the old traditional banking system that are now replaced by one network that is more secure and that can takes into account small transactions and very large transactions it's a new type of money and we have never separated the message from the medium money is now a content type and whether you like it or not tick tock next block as they say the crypto thank you guys that's it for this episode i hope you really enjoyed it make sure to subscribe make sure to follow us on twitter make sure to like that video for more content and i'll see you on the next one bye

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