A beginners Guide to understand basics of Blockchain and Cryptocurrency
The world is changing so fast in the area of technology and that impact is spreading to all other areas of development like AI technology in health, construction, studies, etc. In this digital age, a new technology has emerged that has the power to change all the conventional financial methods, that technology is called Blockchain and the currency in blockchain technology is Cryptocurrency. revolutionizing the methods, we use and interact with finance, technology, and beyond. Starting from decentralized transactions to programmable contracts, there is a huge scope in blockchain and cryptocurrency applications in the coming future. In this comprehensive guide, we learn the fundamentals of blockchain and cryptocurrency. Checking their impact in different areas of industries, etc.
What is Blockchain
Blockchain is a ledger system that is completely decentralized and can able to record every transaction on a network of computer systems. In blockchain technology, every transaction is stored as a block that cannot be altered and each block is connected like a chain in chronological order. Every block is non-editable or tamper-proof, which makes the blockchain technology transparent. Important features of blockchain are
- Decentralization: Every bank in almost all countries works in a centralized manner which needs intermediaries and central authorization whereas blockchain technology works under the decentralized system which operates on a peer-to-peer network removing the need of intermediaries and centralized authorities.
- Transparency: The transactions or the blocks in a blockchain are all publicly accessible and verifiable which helps to increase trust and accountability.
- Immutability: Immutability means unchangeable which means once a transaction or a block is recorded on a blockchain, it cannot be changed or altered and, never be deleted, which increases the integrity of data.
- Security: Blockchain uses the best cryptographic methods and encryptions which make each transaction secure and protected from all the threats. Blockchain is extremely resistant to tampering and fraud.
What is Cryptocurrency
Cryptocurrency is the virtual currency that is used in blockchain technology that works with the best cryptographic methods and technologies that make the cryptocurrency secure and strong. Cryptocurrency works on a decentralized method that does not involve any central agencies of any country. Bitcoin was the first made and most popular cryptocurrency which was created by Satoshi Nakamoto in 2009. Now there are many cryptocurrencies or altcoins developed by many companies and nations, each has different specifications and features.
- Bitcoin (BTC): Bitcoin is the first cryptocurrency that came to the world by Satoshi Nakamoto in 2009. It is the most valuable and popular crypto coin in the world which is also called digital gold. It is primarily used to store value and medium of exchange.
- Ethereum (ETH): Ethereum is the second popular and valuable crypto coin in the market which is used for the creation of smart contracts and Decentralized applications (DApps). It was made by programmer ‘Vitalik Buterin’ in 2013. Ether is the native cryptocurrency of the platform.
- Ripple (XRP): Ripple is another cryptocurrency that is created for fast and low-cost cross-border transactions. Ripple is used mostly in the financial and banking industry. Ripple is a real-time gross settlement system created by Ripple Labs in 2012.
- Litecoin (LTC): Litecoin is another altcoin that works on a decentralized peer-to-peer system. It was made from the inspiration of Bitcoin and with Litecoin we can make instant zero-cost payments to anyone in the world.
- Cardano (ADA): Cardano is working in a public blockchain platform that is decentralized and open source. The development of Cardano is started in 2015 by Charles Hoskinson who is a co-founder of Ethereum. The main focus of Cardano is on scalability, interoperability, and sustainability which help the users to provide safe and scalable infrastructure for decentralized applications.
What is the impact of blockchain and cryptocurrency in our world
Blockchain and cryptocurrencies are changing many industries in the world. The impact of these technologies is directly on sectors like finance, supply chain management, healthcare, digital identity, etc. Let us check some of the sectors and their impact.
- Financial Inclusion: This blockchain and cryptocurrency are capable of making financial services to the parts of the world where there are no financial sectors like banks etc., enabling them to make banking activities like loans, investments, etc.
- Supply Chain Management: Blockchain uses a very transparent and traceable supply chain which helps us to reduce the frauds and counterfeits in the supply chain. This method can also help us to reduce the inefficiencies in logistics and product tracking.
- Healthcare: Blockchain technology uses the best cryptographic methods and it is very secure and reliable. This technology increases the safety and interoperability of healthcare data by secure sharing of patient data, medical research, etc.
- Digital Identity Blockchain increases the security of digital identity solutions which can reduce identity thefts and fraud while increasing privacy and data protection
.There are numerous other applications for blockchain which we can detail in another section.
Conclusion
Blockchain and Cryptocurrencies are improving day by day which has a huge scope in the future world. We must be informed and updated with these technologies as it can be changing the future of our all banking and financial transactions. Some of the methods to increase our knowledge about cryptocurrencies are
- Stay updated
- Conduct Due Diligence
- Join communities
- Experiment and learn
- Embrace innovation
By understanding the fundamentals of blockchain technology and cryptocurrencies and staying informed about the latest developments, we can use full potential of this technologies.
