By Milly Bitcoin – May 14, 2013
This week Amazon announced their “Amazon Coins”. It is described at their web site as:
Amazon Coins is a new way to buy and enjoy Kindle Fire apps, games, and in-app items for less. Save up to 10% on apps and games by purchasing Amazon Coins.
This is a far cry from Bitcoin as it is a centrally administered system. Amazon can add coins to the system or take coins away. It is really just a coupon or voucher to but their products. There have been many of these systems on the Internet from Flooz Dollars, Beenz, Facebook Credits, E-Gold, etc. with central administrators. These systems range from companies who issues credits or coupons to scams meant to fleece users. None of these programs have any relation to the Bitcoin system.
This week, the Future of Payments – Bitcoin 2013 will be help in San Jose, CA. the keynote speakers will be the Winklevoss twins who invested in Bitcoin as well as numerous other speakers on all aspects of Bitcoin. This includes technical experts, product developers, currency experts, gambling site owners, regulatory experts, and some people engaged in some questionable activities (it is buyer beware in the Bitcoin world).
The Bitcoin system operates by many people downloading the software. A database called the “Blockchain” is shared among the users by peer-2-peer connections so a central authority such as a bank is avoided. The rules cannot be changed without a majority of users deciding to change the software. So there is no central authority or “administrator” to add or remove coins. There is no comparison to Bitcoin or other decentralized systems.