Blockchain is a non-corruptible digital ledger of economic activities that may be programmed to keep track of financial transactions as well as virtually any valuable thing.
Blockchain is the technology behind crypto.
And you cannot understand how cryptocurrencies work, without first understand the Blockchain.
Why you should care about Blockchain now?
The blockchain works like a huge record book or ledger, which is shared by all the members in the network and updated regularly on every computer connected to it.
Blockchain has potential applications outside of crypto, like building transparent voting systems, land registries, etc.
This technology is here to stay and will keep improving as time goes by.
There are different types of blockchain, including Public Blockchain, Blockchain with Private Permission, and Blockchain with Consortium Blockchain.
The Public Blockchain is completely open, and anyone can become a member. Popular examples of Public Blockchain include Bitcoin, Ethereum, and Litecoin.
Blockchain with Private Permission on the other hand only allows access to members of the network. Examples include Hyperledger projects and Multichain as well as Corda. Blockchain with Consortium Blockchain uses shared record-keeping, but only specific members have access to it. Examples include R3 and Energy Web Foundation among others.
These are some of the things you can do on Blockchain: Build transparent voting systems, Digital Wallets, Build financial models, Create Decentralized Autonomous Organizations or DAOs, etc…
So we now understand that you can not understand how cryptocurrencies work, without understanding the blockchain first.
How is the Blockchain related to Crypto?
Blockchain was originally designed for use in the crypto space.
Blockchain is decentralized, which means Blockchain does not have a single point of failure; it is more resistant to attack, reducing or eliminating downtime.
Blockchain technology has improved over the years with its usage in the crypto world.
Blockchain is the infrastructure that provides the backbone for crypto to exist. Blockchain has become more efficient, leading to lower transaction fees and faster transactions.
Blockchain keeps track of all transactions happening on the Blockchain which are recorded in Blocks; these blocks are linked together using cryptography, making it virtually impossible for anyone to tamper with existing data or go back and alter any previous records.
Blockchain provides transparency meaning everything being done on Blockchain is visible without needing permission from anyone. This makes Blockchain very useful for auditing purposes in the crypto space, especially when people are involved because Blockchain encourages accountability by providing transparency.
What are some of the Potential uses Blockchain has Outside of Crypto?
Blockchain can be used to keep track of medical records, voting systems, land registries, etc… Blockchain provides security because it is immutable, which means once data is recorded, no one can go back and alter it.
Blockchain also makes transactions easier to process by simplifying record-keeping. Blockchain is a peer-to-peer network that can be used to transfer value between two parties without relying on third-party involvement.
Blockchain eliminates the need for an intermediary like traditional financial institutions in order to ensure there are no breaches of security or misuses of funds.
Blockchain does not use heavy computing power like Bitcoin mining or Ethereum’s Proof-of-Work algorithm, so changing anything done on Blockchain would require an immense amount of computing power, and Blockchain is protected against such attacks.
Blockchain allows anyone to become a node on Blockchain, meaning Blockchain does not discriminate against any device or program. Blockchain technology has the potential to make many processes, like trade financing, more efficient as well as cheaper by removing some intermediaries from the process.
How can you get started with Blockchain?
Getting started with blockchain technology can be a daunting task, but there are resources that exist to help developers and non-developers get started. The first step in getting started is to understand the basics of building blockchain applications and developing decentralized applications (Dapps). This requires understanding the blockchain itself and several other technologies: cryptography, peer-to-peer networking; consensus mechanisms; public and private key management; cryptocurrency (or tokens); and more.
Once you understand the basics of how blockchain technology works, you can begin to write smart contracts with Solidity. Solidity is a general-purpose programming language for developing smart contracts on blockchain platforms such as Ethereum and Waves, which have their own tokens you can write smart contracts to govern.
But be aware that there is a lot of cryptography math involved in writing a secure smart contract. So if this sounds daunting, consider starting with one of the many development platforms that provide a user-friendly interface to build blockchain applications. Some of the most popular development platforms include Ethereum, Hyperledger Fabric, R3 Corda and Quorum from JPMorgan Chase & Co., RootStock, Lisk, and Waves, which can be used to develop Dapps on these specific blockchain ecosystems.
Is Blockchain Technology here to Stay?
Blockchain technology is here to stay because Blockchain is decentralized, which provides trustless transactions and transparency, thus reducing many problems associated with centralization and giving users full control of everything done on Blockchain without having to trust each other beforehand. Blockchain technology has the potential to bring about massive changes all over the world, especially when it comes to areas such as supply chain management. By cutting out unnecessary intermediaries and reducing processing times Blockchain can save money on their bottom line.
Blockchain is a disruptive technology that has the potential to overhaul how banks work and give Blockchain users direct access to their funds without having to rely on an intermediary or third party.
Blockchain is here to stay for a long time.
Not only because of the transparency and cost-saving benefits but also due to the fact that anyone with programming knowledge can create their own decentralized apps.
Final Thoughts on Blockchain Technology
Blockchains are being used in a variety of industries today, with the potential to revolutionize many more.
The transparency and security it provides makes Blockchain an attractive solution for any industry looking to remove third parties from their transaction process.
With its efficiency at removing middlemen, Blockchain is poised to change how we do business around the world- which is why it’s here to stay.
