Ikatan Alumni (IA) SBM ITB invited Raden Aswin as a guest lecturer to present about cryptocurrency on Saturday (2/4/2022). Raden Aswin or Randy first explained the definition of cryptocurrency. For Randy, cryptocurrency is a medium of exchange, created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary units and verify the transfer of funds. Randy also elaborated on the characteristic of crypto: it has no intrinsic value and physical form, and a central bank does not determine its supply.
Next, Randy told us about the purpose of cryptocurrency to reduce the risk involved in traditional currency and make it easy to use. In addition, cryptocurrency has the power and responsibilities in the hands of currency holders to solve real-world problems.
The cryptocurrency is made using mining, a process of adding transactions to the blockchain ledger via nodes on the network, with the consensus achieved through proof of the system. Cryptocurrency can also be made by other techniques, such as a token.
There are three ways to obtain an existing cryptocurrency: by winning a block, receiving gifts or being paid for goods or services, and purchasing from a stock exchange. We can also obtain cryptocurrency through an Initial Coin Offering (ICO) and a hard fork.
In his lecture, Randy also provided facts about cryptocurrency required by a beginner. He also explained blockchain benefits: increased transparency, accurate tracking, permanent ledger, and cost reduction. He also shared the potential applications of blockchain in automotive, financial services, voting, and healthcare.
Not only illustrated the advantages and opportunity in cryptocurrency, but Randy also listed the problems with cryptocurrency. “For example, the lack of regulation, volatility, and fear of hack and scams due to digitalization,” Randy said.
He also talked about the disadvantages of using cryptocurrency: security, a huge loss due to lack of experience and knowledge, and network issues due to its digitalization. In conclusion, Randy warned us to learn the ups and downs of using crypto before starting it.
