The wave of the future….So what exactly is blockchain technology and even more what is crypto? Is it dead? What’s to come?
For starters to answer the question of what blockchain really is, then blockchain essentially is a public ledger which is a store of data which in this case in the context that we’re speaking if then we’ll say it is a store of financial transactions in the sense of crypto. It’s called blockchain because it’s data is collected and stored in chunks or groups of data known as blocks and once each block is filled it is then linked and connected to its previous block and then a new block is began and the system repeats itself creat an irreversible timeline if records strung together in a chain like form, hence the name blockchain. This makes it immutable meaning permanent it cannot not be changed or altered and transparent so everyone associated with it can see it, and thus makes it honest.
Another beloved concept about blockchain is that it’s a decentralized, peer to peer network meaning no one individual, entity, or conglomerate controls it, so it can out be manipulated, it’s a technology that’s ran for the people by the people, not controlled over by any one authority making it secure. It’s made up of a network of computers or nodes whose primary job is to verify the validity and authenticate transactions. So it’s impossible to corrupt as all changes made can be seen and would have to then be verified by these nodes and the changed on the remaining blocks. This is one of its biggest feats, so now we can deal and transact directly with one another in a safe and fast manner thanks to what’s known as smart contracts another aspect of the blockchain which we’ll discuss at a latter time. All of this makes blockchain fast, safe, secure, trustworthy, and a force to be reckoned with.
Now we might say what does this have to do with bitcoin and cryptocurrencies, and I’m glad you asked 🙂
The relationship between crypto and blockchain is like husband and wife. Blockchain is the engine that runs any and every cryptocurrency. It’s the technology that makes it all possible. As we’ve said that blockchain is a store of data, well in the case of crypto it’s financial data that’s recorded, every transaction that has ever taken place gets recorded and verified and stored on the blockchain. This prevent any double dipping or spending the same money twice, so Doug cannot send Jane and Me anything that he doesn’t have or the same money as every transaction is stored and recorded on the blockchain.
But what exactly is cryptocurrency ?
Cryptocurrency is encrypted digital currencies created and housed on the blockchain. They are unique in the sense that they are not issued nor regulated by one single authority but rather the network itself, unlike its counterpart fiat currency which we use today. With all the talks of inflation and the decrease in purchasing power of the USD, cryptocurrency has been a hot topic among financial institutions and analysts. It is a virtual currency that enables users to send and receive payments with the absence of any middleman quickly and securely with each transaction being time stamped, given a unique code, recorded and stored on the blockchain for all to see. It is created through a process called mining where individuals have to solve a number of complex math problems to generate coins and they’re rewarded a portion of said coins for their work. There are many currencies in existence with more notable coins like Bitcoin, and Etherium leading the way. Some of its benefits outside of it being digital opposed to having to carry big wads of cash, is that it is fast and inexpensive to send money and settle debts.
In conclusion blockchain and crypto, two brand new forces in the internet and financial world is just getting started. There’s so much more to learn about this new innovative technology from its use cases and other potential applications from finance to social platforms and beyond. So til next time, good business sells itself….#Peace
Entreprenuershit 