What the hell is Blockchain Technology, Cryptocurrency, and Bitcoin?
A brief introduction on Blockchain Technology, Cryptocurrency, and Bitcoin
Blockchain
Blockchain is a decentralized and distributed digital ledger that is used to record transactions.
Ledger is just like a book that maintains details of every transaction that happened.
Decentralized and Distributed ledger means
The ledger is not centralized (maintained by the central government) and is distributed to every citizen. Every citizen has a separate ledger that maintains the details of him/her.
Our transactions would be stored in nodes. we assume some nodes that are connected together like a graph as shown in the figure below.
Every node contains some hash using which we can access the transaction details stored in that node. Hash here is as unique as the fingerprint is.
Every time we make a transaction, a new node is created which contains all the details that the previous nodes contain. And the details about the recently made transaction are added to the new node and the new node transfers to the just connected previous nodes and so on. In the end, every node will remain to have all the transactions’ details of the user.
So, even if data in a node is hacked, we still have data in other nodes and is not lost.
Blockchain technology is used in the areas to resist scams etc,
Cryptocurrency
Cryptocurrency is nothing but digital currency or digital money. Digital currency has no physical shape and we can not touch it physically. We can only use it for digital transactions
Benefits of cryptocurrency :
- Safe and secure(as cryptocurrency is based on cryptography and blockchain technology is also used in this)
- No mediator and thus no extra charges(peer-to-peer transaction). Generally, we have accounts in banks and when a transaction is made between two persons, it happens with RBI as a mediator. So charges are levied from mediators on us (users). This scenario is absent in cryptocurrency
The best example of cryptocurrency is Bitcoin. Bitcoin is first introduced in cryptocurrency.
Bitcoin became available in the market in 2009 and its worth was 0.03USD(2.23 INR). Its worth jumped to 10,00000+ INR in 2020.
Its worth increases when the number of buyers(demand) increases.
Clapp it if you like it :)
Hi everyone! If you liked this article please support me by giving me a follow! I’m a new writer to medium (so I have not yet reached the 100 follower count) and I will be posting very frequently on my findings and learnings in the tech industry and beyond.
Thanks for reading again! ❤️
