When I first heard of Blockchain I thought it was another type of cryptocurrency. I was right in part because without blockchain there would be no crypto.
It is the backbone of the whole system, it’s what makes it work so well. The whole thing might sound a bit confusing but it’s not as bad as you think.
Let me explain:
First of all, I’ll tell you what it’s not!
It’s not a chain, but more like a network of connections.
Think of it like a spiders web, a bunch of strings that connect with each other and at the end of the strings a node, a place where the information is stored, recorded and shared with the rest of the network. Everything is recorded so if one of the nodes brakes apart from the rest of the network it is not forgotten about.
With technology, it has never been so easy for people to connect directly with each other from A to B anywhere around the world, by messages, email, voice, video calls and pictures.
Why Blockchain works so well with crypto, is because there is no middleman to deal with the trade, only per to per which cuts fees and any loss of money.
Unlike what would happen with money where a third party would have to step in to complete a transaction.
The blockchain is changing the status quo as it provides an open decentralised database of every transaction involving value using math and cryptography.
It can be used for all types of transactions including involving money, property, goods, work or even votes.
It can’t be messed with because everything is written down on a ledger verified and recorded for all the network to see. This means nothing can get lost or changed unlike if there was a bank or some third party trust dealing with the transaction.
The uses of Blockchain are endless and there are technologies being built by businesses every day.
Fraud can be greatly reduced with Blockchain because if someone claimed something to be theirs, the network would all have to agree, so if it was taken without the proper consent the network would know. This is why it’s nearly impossible to steal crypto coins.
Blockchain causes a problem for hackers also which is great news going into the future with technology going the way it is, autonomous cars, drones, military, IOT (internet of things) etc.
If a hacker wanted to change something to cause problems, like to take over control of a self-driving car, to change the information on one car he would have to change the information on every other car also because the Blockchain network would have to agree on the change.
This will provide more safety and security for companies and our own privacy going forward.
So as you can see the abilities of Blockchain are endless and life-changing. And if it wasn’t for crypto also, it might’ve not come to fruition.
I hope you’ve learned something more about cryptocurrencies and Blockchain from my post.
I’d love to hear your feedback on the comments and any extra things that people should know about Blockchain and why it’s so important for our future…
Daniel Mac Sweeney
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