To help you begin we provide blockchain details and information that everyone should know. Application of this technology is an ever evolving world, somewhat complex, and a tad scary, but amazing to witness! We’ll cover basic concepts that will help you feel comfortable with the blockchain. Also, you’ll learn how you can easily integrate cutting edge blockchain technologies into your tech portfolio and make it work for you.
Blockchain details – simplified
Explaining basic details is actually fairly simple. The blockchain is a record of information – a “ledger”. Imagine a piece of paper that you use to write and record your last online purchase. Congrats! You have now started the foundation of a blockchain, or simply a ledger, a record of information, typically used for storing transaction information.
Now imagine you make another purchase and add another piece of paper that records your purchase. You add and bound you pages together in order, building a notebook. Each individual paper stores transaction data – a “block”. As you record more information in your notebook you add additional paper (blocks) to your notebook – the ledger, a collection of blocks of data. Congrats you have now created your own blockchain! As you read on, we’ll explain what makes blockchain unique as compared to other methods for recording information.
The facts about blockchain tech:
- It is decentralized technology (meaning no one system is the “Central” authority). Many people with computers (albeit high powered computers) help make the blockchain run. This is very good for stability and making the network tamper proof.
- The ledger is copied to each and every computer that runs the blockchain. This means no falsifying or tampering with records. Very important when using the blockchain to facilitate financial transactions, or to avoid hacking attacks.
- The blockchain uses public and private keys to facilitate transactions. This means your transactions and personal information are private. Your identity is only know to you! No more big brother tech companies tracking your every transaction!
Transparent and incorruptible
Going back to our notebook analogy, a collection of notebook pages with information recorded on each page is at its essence a blockchain. Each page in the notebook (ledger) is a block that contains information, such as a list of purchases we made, or transactions.
Our notebooks however, distribute to every person (participant) on the blockchain for record keeping. Any time a new page (block) adds to our notebook (ledger), every participant gets a copy of this new page! The information contained in the notebooks are unidentifiable as to who the transaction belongs. A digital key, while it does not contain any personal information, helps identify the party involved in the transaction. Therefore, this technology is widely utilized to conduct anonymous transactions.
Since everyone has a copy of the notebook, if anyone attempts to edit or change what is in the notebook, it will not match the thousands of other notebooks that are the exact same copy. This is what makes the blockchain unique as information contained within a block is tamper proof and accurate. Also, this is what makes blockchain a choice architecture for financial transactions such as trading cryptocurrency. A secure, private, and reliable network. Much more so than the internet.
Unique details
Because the blockchain is a decentralized system and everyone has a copy of the ledger, it by nature holds everyone on the network to the highest degree of accountability. Remember, it is near impossible to tamper with a ledger as it is copied many times by all those who participate in the blockchain. This results in:
- Information exists as a shared and continually validated and reconciled database.
- The database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable.
- No centralized version of this information exists for a hacker to corrupt.
- It is hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
- Ultimate security and transparency. Truth.
- Due to decentralization and redundancy it has no single point of failure.
- Decentralization also makes the blockchain incorruptible.
An evolution in architecture for data exchange
We’re not exactly certain who created the blockchain, but legend has it that a group of developers going by the pseudonym, Satoshi Nakamoto is the architect. Since it’s inception, the applications of blockchain architecture has grown exponentially. One of the first uses of blockchain is for cryptocurrency exchange. The blockchain allows for a secure way to make transactions, such as purchasing, trading, and earning cryptocurrency. This is all done privately, accurately and securely! The most popular cryptocurrency is Bitcoin. Bitcoin was first invented in 2008. Since that time, Bitcoin has operated without significant disruption in its blockchain based architecture.
Bitcoin has been known as “digital gold”. The current price on a single Bitcoin has grown well out of most of our budgets, not to mention the computing power it takes to mine a Bitcoin! But, cryptocurrency is quite a unique and equal opportunity market as us poorer folk can earn, purchase, or trade Bitcoin in thousands of a fraction! However, we have found a more accessible, modern, and environmentally friendly way to earn Bitcoin. You can find out more here.
There are now over 2000 Bitcoin-like cryptocurrencies (exchangeable value tokens) already available. In addition, there is a full range of other potential adaptations of the original blockchain concept that are currently active, or in development. Because there are literally no barriers, the uses and deployed solutions will be a part of our everyday lives (if not already) in the immediate and advancing future.
Nodes and their role in the blockchain.
A network of computing “nodes” make up the blockchain. Nodes consist of anyone with a computer (or groups with groups of computers) who would like to participate in the blockchain. Participant’s computers work to perform tasks such as validating transactions and ledger, and solving mathematical equations to facilitate adding blocks to the blockchain. Participants earn cryptocurrency rewards by using their computer resources to perform these tasks. This is known as cryptocurrency “mining“. However, not everyone has to mine to obtain cryptocurrency. In addition to mining, cryptocurrency is available for purchase as an investment through cryptocurrency exchanges. We have some favorites that make it easy to begin investing, and you can learn more about by clicking here.
Mining: A network of nodes
Every node is an “administrator” of the blockchain, and joins the network voluntarily. Each node has an incentive for participating in the network. Nodes (computers or groups of computers) earn cryptocurrency by proof of work, and adding blocks of information to the blockchain. Nodes earn a specific amount of cryptocurrency for completion of blocks in the blockchain.
People do not perform functions on the network, rather the work is done by their computers (solving mathematical equations to add blocks to earn rewards by the blockchain). It is this system of redundancy, checks and balances that allow the blockchain. This also allows transactions to record to the ledger without any tampering. However, over time the mathematical equations on the blockchain become increasing complex, and take more and more computational power, putting this type of mining out of our reach (alone).
Luckily there is a way to group together and pool resources to mine for cryptocurrency, using only your home computer. Visit here to find out how.
Blockchain details: The idea of decentralization
While blockchain is a basic technology, its applications are vast, and has numerous implications for our future. Below are some exciting and forward looking observations about the blockchain.
- By creating a new way to verify transactions; aspects of traditional commerce could become unnecessary.
- Realizing a global economy of trade (think stock market world wide scale) operating 24/7/365 with no market opening or closing.
- Vital record keeping, like a land registry, is now fully public.
- A global network of computers using blockchain technology to jointly manage records and structured transactions. Making information transparent and up-to-date and available at all times.
The blockchain is managed by its network, and not any one central authority. To add definition; “Decentralization” means the network operates on a user-to-user (or peer-to-peer) basis.
Who will use the blockchain?
Keep in mind; you do not need to know about the blockchain for it to be useful in your life. Like computers, they have been enhancing everything around us with or without our knowledge of them and how they function.
The finance sector may be the earliest adopters of blockchain technology. Billions of dollars in US money electronically transfers every year. With these type of transactions also comes a fee (think using credit cards to make purchases). Also, there is always the risk of errors, data corruption, or hacker attacks to gain personal information. Blockchain technology not only cuts out unnecessary “middle” fees, but also provides a secure and tamper proof environment to conduct transactions.
Access to the financial sector and cryptocurrencies became accessible to the general public with the invention of “wallet” applications. These were first used by people to buy things with Bitcoin, and to be able to store and access it along with other cryptocurrencies. We recommend OMINEX wallet for any cryptocurrency need or resource.
Because of the solid backbone and privacy that blockchain provides, we anticipate use in healthcare, particularly securely sharing patient records between providers. A simple and effective way to keep information protected and private.
Jobs and Careers are abundant in the blockchain. At the moment there is a high demand for blockchain developers. This is not going to slow down. Therefore, implications for evolving into the blockchain is relevant for virtually everything.
Enhanced security
By storing data across its network of nodes (computers), the blockchain eliminates numerous risks that come with traditional methods of holding data centrally.
Our traditional internet and methods of electronic record keeping such as bank account information, is vulnerable to security breeches. Further, if you have not noticed, or confused how it operates (this is intentional), the internet and applications are notoriously used for tracking our activities, and invasive to our privacy and anonymity.
Blockchain has revolutionized online applications through encryption methods called public and private keys. When you join the blockchain as a participant (either a miner or user, or both) you are assigned a public key. This is a special string of characters (number and letters) that identifies you anonymously. This allows for data transactions to occur by using your public key (or address). The public key points to your personal information, but never uses it, and only you have access to your personal information. The private key allows you access to your “account” or wallet. Only you know the private key, similar to a password. This protects you and digital assets and keeps your usage private.
The reality of tech expertise
We don’t have to be an expert on how the blockchain works to be able to use and enjoy its benefits. While we may not know how the internet, computers or cell phones work, a lot of us rely on these technologies every day! The internet as we know it today, started as a way to share “emails” and research information, and then grew into a massive backbone to support commerce, jobs, and industry, revolutionizing our world as we know it today. Similar to the internet, blockchain is evolving to the next level of technology based on decentralized solutions. From our vantage point this tech’s destiny is integration into our everyday lives, much like the internet is for us today.
Feel overwhelmed but excited to get started?
We certainly understand if anyone is feeling overwhelmed by blockchain and cryptocurrency concepts. Therefore, we’ve created a special hot spot to help interested readers get involved in the future of personal and financial growth, right now. Become a Miner of Cryptocurrency with an easy to use application, and little to no capital risk. Enjoy the financial benefits while you continue to learn and grow. The blockchain has literally created some millionaires that don’t have a tech background. Simply be in the right place at the right time. VISIT HERE for the details on how you can safely and securely use your Computers (when you are not using them and they would be otherwise idle) to benefit and earn. And, welcome to your new and exciting journey in blockchain and cryptocurrency technologies.
