Welcome to Blockchain Technology Explained! You are here because you are curious about the world of blockchain, what it does and who does it work. Great! In the next few minutes you will have enough information to answer those questions for whoever is having the same questions. So, grab a cup or a glass of your favorite drink and let’s read on!
To begin, the blockchain technology is a digital tracking system, a ledger if you will. This systems tracks economic transactions of all kinds of values done in the Internet. Similarly, it is highly secure and almost unbreakable!
Blockchain Technology: The Break Down
- First, the blockchain is like a world wide decentralized market. In other words, it has no central operation system or authority to control it.
- It keeps tracks of who sends and receives coins, tokens and information.
- Also, it tracks the balances in cryptocurrency accounts.
- Thousands of people called “miners” maintain the blockchain.
- Miners use their CPU’s to mine cryptocurrency.
- Individual transactions in the blockchain form a block. In other words, blocks are made of transactions.
- When you access the the blockchain to view your balances you are seeing activities for the entire blockchain not just one particular private system.
More Good News from Blockchain Technology
The blockchain technology brings a number of benefits seen below:
- Transactions become more safe and secure.
- Also, it reduces the number of unauthorized transactions.
- It uses a strict protocol to validate transactions through a vast network.
- It reduces the need to corrupted databases, thus having less human and machine errors.
- The blockchain validates constantly the information it gains from transactions.
- There’s no a central system safekeeping records of information. The records are public and easy to verify.
- There is no centralized version to the blockchain.
- The public domain has access to the information in the blockchain, thus creating more transparency.
- The blockchain is a technology that is mighty difficult to corrupt.
Again the blockchain keeps records of digital transactions taking place. When more users join the network then there are more ways to validate transactions and their authenticity. The records form blocks, each block has a time stamp and a link to the previous verified block. This is how it produces a chain; because all blocks are connected to one another.
Blockchain Technology is a Technology we can all use!
Certainly technology has come a long way since the time of our grandparents. We all see young and old using a mart phone, a tablet, a smart TV, and several other devises available to us. Well, not all of us really understand how all those technologies work, we just know they work well and make our lives better. Yes, better! Thanks to GPS I always know my way around when I travel to new places. I’m sure we all have a similar example. Likewise, we do not need to be experts on blockchain technologies to be able to use it and benefit from it!
Blockchain Technology: Nodes
To begin, a Node is computer joining the blockchain network. The network downloads records of information to the nodes when they join in .
Next, Nodes keep on performing transaction validation routines in connection to other Nodes in the blockchain.
More on Nodes: Bitcoin
Further, this nodes or computers joining the network voluntarily and take the role of network “ administrators”. Hence, this is how the network is decentralized, because there is no one entity working as sole authority. Why do computer owners join this network? Because their reward is in Bitcoin. If that is not a motivation, I don’t know what is! The computers or nodes issue proof of work and contribute with making a block within the chain. Once all this is done the node receives a certain amount of Bitcoin.
Now a days, Bitcoin and other forms of cryptocurrency are becoming popular methods of payment. We can now book trips, pay for goods and entertainment using the cryptocurrency our computers mine.
Blockchain Technology: Decentralization
As mentioned, a decentralized network pertains to an open network that operates on a peer to peer basis. Contrary to traditional networks, the blockchain does not have a single entity that serves as authority. Certainly, with such a structure other aspects of this network worth noting:
- First, since this creates a new method to verify transactions that would lead to aspects of traditional commerce no longer necessary.
- Also, it generates a global trading economy operating day and night. This is because the blockchain allows for trades on Crytocurrencies and ICO/Tokens.
- All pertaining records are open to the public.
- In addition, this is a network of thousands of computers working globally. Thus, recording and updating information all time and focusing in accuracy.
Blockchain details: Who will use the blockchain?
Further, just like we use the GPS without knowing how it exactly works we can use and benefit from the blockchain. For example, electronic money transfers were estimated to surpass $430 billion dollars in 2015. Similarly, jobs in the technology field are gaining demand. And, since technology is the way to go, the demand for those jobs won’t be going away.
Certainly, the blockchain diminishes the need of a middleman. For instance, we no longer visit a travel agency when we’re looking to book a trip. Also, this technology allows for people from all over the word connect and exchange goods and services while transferring money safely.
Also, not only the transferring of typical currencies are possible through the blockchain, but also cryptocurrencies. When you begin to collect cryptocurrency via the blockchain you will need an electronic wallet to access this types of funds. Consequently, when using an electronic wallet you can store and pay for transactions with cryptocurrencies such as Bitcoin and others.
Blockchain Technology: security to the next level
As stated before, the blockchain is part of a decentralized network. There’s no one central location to store all information, on the contrary the blockchain stores data all throughout its network. This helps in they way that there’s no one point of focus vulnerable to hackers.
In addition, until recently our accounts and private information have been guarded only by username and a password that can be easily bypassed. However, now under blockchain technologies our information is now encrypted. And so, our information and assets are much secured. Internet security has most certainly evolved and improved with the arrival of the blockchain.
How to electronic wallets protect your information:
- Printable key code only you know and have access to.
- Items such as a Trezor. A Trezor is a device that lets you input your private keys and keep them guarded while online or offline.
Getting Your Foot in the Blockchain
So, are you looking to get your foot in the door or the blockchain and rip the benefits from the Blockchain? Then look no further. There’s an easy, quick and you may even say seamless way to mine for cryptocurrency. With this method you can really just begin putting your computer to work while you are working on it, or even sleeping! In addition, you can have other devices working at once along with your computer. You will also be also to see how much cryptocurrency you accumulate with time, for example: Bitcoin. SEE THE DETAILS and get STARTED HERE
Well, thanks for reading till the end! If this feels like a tad of too much information… it’s fine! You are learning a new thing, and like everything, with a little of time and effort it won’t feel so new. Remember you don’t need to be an expert on this technology to be able to use it and benefit from it. Keep coming back here for there’s always new information and findings you will find interesting and helpful!
Response Magic