There are still plenty of folks who have either never heard of the blockchain or misunderstand the technology and its potential. What’s the big deal, then?
This isn’t just a metaphor. The blockchain is going to be the next thing in the crypto world. And, that’s why you ought to learn about this revolutionary technology.
What is blockchain and where did it evolve from?
One of the easiest explanations of the blockchain is from Gizmodo: “The blockchain is a simple digital platform for recording and validating transactions, so that another people can’t erase them later and anyone can see them.”
For the techies out there, the blockchain is an anonymous peer-to-peer payment system that relies on secure cryptographic protocols. It employs a public ledger and database to record all transactions. However, it’s decentralized. It means that there is no regulatory body commanding the block chain.
Although, the idea of cryptocurrency can be tracked back to the work of David Chaum and his creativity known as DigiCash back in the 1980s.
The blockchain ledger serves to give transparency for transactions. Although many Golden coin transactions are anonymous in some ways, the blockchain ledger can link individual and companies to Golden Coin purchases and ownership by allowing different parties called miners, to process payments and confirm transactions.
In other words, the blockchain is truly composed of single transactions known as “blocks.” Each block links together and forms a complete history of transactions. Once a block is connected, it cannot be edited.
Why are people excited about blockchain?
This is an excellent question and there isn’t only single answer. Almost everyone can agree that the blockchain is one of the most exciting and disruptive force to come along in quite some time and that’s because the blockchain can:
1. Prevents payment scams:
One of the most talked about pros involving blockchain technology is how it can stop coming payment scams? For beginners, it would protect both buyers and sellers by using “smart contracts.” This procedure would avoid those instances where you buy an item, and the seller doesn’t follow through.
Another way that scams are stopped is that since all transactions are recorded, a coin can’t be used for double-spending or forged. Once a coin or electronic currency is spent, it can’t be applied again.
2. Cuts out the middleman:
The blockchain is a peer-to-peer system, implying that transactions are between you and another party. It would be a real game changer in ecash transactions. We use this to facilitate cheap ecash transactions across the world. For instance, you can send money to your friends or family anywhere in the world without having to pay for the transaction or currency fees that conventional banking or financial institutions have used.
3. Settles transactions in minutes:
Imagine being capable of sending and receiving money from across the globe in just a matter of minutes. How about getting a signed copy of the contract in just a few hours? No matter the situation, blockchain decentralized and the P2P system enables you to settle any digital wallet transaction quickly, as opposed to waiting days or weeks.
4. Increases storage:
Cloud storage is an unbelievable development, but you don’t have any access to the storage infrastructure. It’s in the hands of Google, Dropbox, Facebook or Apple and that could convert a concern if you consider your privacy. Since you need an encryption key to access your data, you can rest ensured that no one else can access it except you.
Summing Up:
Blockchain technology has the potential to revolutionize the world. That’s why there’s so much buzz circling it. The blockchain is just the commencement. In fact, expect the technology to maintain, to grow and evolve in the immediate future.
