What exactly is Blockchain Technology? Blockchain is a revolutionary technology with a simple concept-a digital ledger system. Hence, a super-cool spreadsheet that keeps data secure, accessible, and accurate.
Below is a simple flowchart of the Blockchain-Process:
WAIT-Let’s Simplify
A blockchain is a list of transactions that anyone can view and verify. Therefore, blockchain technology makes it possible to transfer value online without the need for a middleman like a bank or credit card company.
- The blockchain is similar to a large decentralized (not one single system), global spreadsheet.
- The blockchain keeps track of whoever sent the number of tokens, coins, or information to whom.
- It tracks the balance of every account of Coins/Cryptocurrency.
- Blockchain made of blocks. Conversely, blocks are made of individual transactions.
- In conclusion, payments via blockchain can be more secure than standard debit/credit card transactions. No need to provide any sensitive information.
Advantages of Blockchain Technology
- Global: Cryptocurrencies sent anywhere.
- Private: Payments do not require your personal information equals no hacking or identity theft.
- Open: All transactions published publicly (anyone can see) in the form of the blockchain.
- No middleman: Every single transaction no longer requires a bank or credit card company or payment processor in the middle of a transaction. At last, no added cost or complexity.
How does a Blockchain Work????
There are links to the chain. Every link equals a transaction. With this in mind, at the top of the chain is the most current information, and as you move down the chain are the older and older transactions. In the end, if you follow the entire chain you see every transaction in the history of that cryptocurrency.
The blockchain has a powerful security advantage-it is an open, transparent record of a cryptocurrency’s entire history. Therefore, if anyone tries to manipulate a transaction it will cause a link to break within the chain. Consequently, the entire network will see what happened.
The blockchain tracks all the money flowing in and out through the network like a ledger. The ledger secured by a large peer-to-peer network of computers. In the meanwhile, the network is constantly checking and securing the accuracy of blockchain.
Cryptocurrency
Cryptocurrency is becoming the world’s most globalized monetary instrument. The concept of digital currencies, or cryptos created in 2009.
Digital Currencies
Cryptocurrency is created around every ten minutes in the case of Bitcoin. Hence, a new chunk of transaction information (or a new block) is added to the chain of existing information. As a result, in exchange for contributing their computing power to maintaining the blockchain, the network rewards participants with a small amount of digital currency.
A crypto blockchain distributed across the digital currency’s entire network without any control of a company, a country, or a third party. Actually, anyone can participate. To illustrate, anyone can send you money via your public key, which is like an email address. Accordingly, the cryptocurrency network assigns an unique ‘address’ made up of a private key and a public key. Private key (basically your password, to digitally ‘sign’ transactions) is how to spend your money. Finally, the easiest way to manage your cryptocurrency via software called a wallet, which you can get via exchange like Coinbase.
Invention of Blockchain
Satoshi Nakamoto, the creator of Bitcoin, implemented blockchain as a means to solve the problem of double-spending, without a central trusted authority. Since, Satoshi Nakamoto used the words block and chain in his original paper, giving origin to term ‘Blockchain’.
The goal was to create digital money that would allow online transactions between two strangers anywhere in the world without requiring a third party. Therefore, eliminating the ‘double spending’ problem (person using the same money more than once). In the end, a network created to alleviate problem.
Bitcoins are ‘mined’. In exchange for contributing their computing power to the blockchain, miners are rewarded with small amounts of cryptocurrency.
Become a Miner of Cryptocurrency
Want to be a part of the future? Become a Miner of Cryptocurrency. Consequently, you do not need to fully understand it or put capital at risk.
VISIT HERE for the details on how you can safely and securely use your Computers.
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