The centralized blockchain

 

The centralized Blockchain. Confused! Right?. So let's get through it.

What is eNaira?

eNaira is a digital currency that is officially issued by the Central Bank of Nigeria (CBN) to complement the naira notes (cash). 

Benefits of the eNaira to the Nigerian economy

1. To create cash-less movement of money from one person or location to another easily and quickly.
2. It will enable free cross-border business effectively and efficiently.
3. It brings more players to the economy. Someone who is not willing to participate it the economy because of too much verification process may now be interested to engage into the economic activities.
4. It links domestic and foreign market.

The eNaira structure:

Similarities between eNaira and crytocurrency 

The eNaira structure is based on Blockchain technology. Transactions are stored and recorded using the Distributed Ledger Technology (DLT).

As the best option for the CBN to create digital currency is by adopting the Blockchain infrastructure. This is what makes it to adopt the Distributed Ledger Technology (DLT).

The differences between eNaira and cryptocurrency

But the accessibility is different from the cryptographic currency concept. Person can access the eNaira wallet by using the National Identification Number (NIN), Bank Verification Number (BVN) and/or Tax Identification Number (TIN).

One good feature of Blockchain technology is missing here; "the anonymity". Person must be verified by the CBN before using the eNaira wallet.

The eNaira is owned and controlled by the Central Bank of Nigeria (CBN). But the cryptocurrency is owned by no one, everyone mine including the creator.

And intermediaries still exist in regarding the eNaira since it's controlled by the CBN.

Conclusion

Note: crytocurrency here is referred to decentralized currency that is widely being used.

 eNaira is the Nigerian electronic currency issued by the Central Bank of Nigeria (CBN). It is also a legal tender like the Nigerian naira notes (cash).

The eNaira only use the Blockchain technology to secure its resources from threats and attacks. But it is not the like the general cryptocurrency.