Blockchain seems to be the new buzzword. But what is Blockchain? The way the world does business is changing and the way we do business has to change too. Whether we like it or not we need to get up to speed on the details of the blockchain. To help you with that here are some details and general information that everyone needs to know. And don’t worry, you do not need to be an expert. You can start with a general understanding and learn more as you go along.
What is blockchain? The dictionary defines it as “a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.” To go one step further, this ledger can be programmed to record just about anything of value.
To Make It Even More Simplified
- You can look at blockchain as a huge, global decentralized spreadsheet. With no one being the central authority.
- Tracks who sent what to whom and how much was sent.
- In the case of Bitcoins/Cryptocurrency, they track the balance of every account.
- Thousands of people known as MINERS across the world store and maintain the blockchain. They do this by using special programmed high powered and uniquely configure computers.
- Blocks contained in the system are made up of individual transactions sent and received through the blockchain. For example, if you make a transaction using your Exodus, Mist or any other blockchain wallet it would be input into a block in the chain.
- When you view Cryptocurrency Balances on any Blockchain wallet you are seeing data that resides on the blockchain. You are not seeing it on anyone personal system. The same is true if you use any other source to view a transaction, such as etherscan.io or blockchain.info.
More Details and Benefits to all:
This is a decentralized system bringing the highest degree of accountability. As a result, there will be:
- No more corrupted or missed transactions
- Human or machine errors will be a thing of the past. As well as corrupt or broken databases.
- Transactions or exchanges made in error without the consent of the parties involved will no longer be possible
- The blockchain guarantees the validity of a transaction. This is accomplished by recording the transaction on the main register and a connected distribution of registers. All are connected to a secure validation protocol, not allowing for errors. Providing safety and peace of mind.
Best Way to Explain Blockchain Technology is to look at it as Internet 3.0. It is the Evolution of the Internet.
The evolution of the Internet making it better, safer and in essence truth. The blockchain is an ingenious invention. Being the brainchild of a group known as Satoshi Nakamoto. Since it’s invention is has grown into something greater than expected by the inventors and everyone else for that matter. With the new developments, the internet has evolved to where it is better for everyone, everywhere. Although it was originally created for use for digital currency, namely Bitcoin. New ways to use this technology are being discovered every day. Blockchain is changing the way we do business in the same way the Internet did.
The nickname for Bitcoin is “Digital Gold” is and it seems quite fitting. The current value of Bitcoin is close to $350 billion US and growing. I am sure that by the time you read this it will be much more. Blockchain can create the same value as other types of transactions.
Just like the Internet, You Do Not Need to Understand Blockchain to Use It:
This technology is like any other new technology or smartphone or computer program. Just like the internet, if you are like most people you still don’t know everything the internet can do for you but you still use it every day. The same can be true with blockchain. Don’t be afraid, just with a basic understanding you will know why it is so revolutionary.
It is a secure database: Let me explain this even more:
Simply, blockchain is a spreadsheet shared thousands of times by a vast network of computers. Now picture a secure transaction update. The network will update this spreadsheet on a regular basis. That is simply what and how blockchain works.
- The blockchain is a shared and continually validated and reconciled database.
- The Blockchain database is not stored at any single location. Therefore, all records are public and easily verifiable.
- No hacker is able to corrupt the information because there is no centralized version of the information
- Millions of computers simultaneously host information. Making this data is accessible to anyone with internet access.
- This provides ultimate security and transparency.
Durability and Robustness:
The internet and blockchain are similar in that they both have built-in robustness. Blockchain stores blocks of identical information across its network. Therefore, the blockchain cannot:
- No single person can control the blockchain
- Blockchain has no single point of failure.
- Have anyone embezzle or corrupt it.
More details from history: Invention/Creation:
Bitcoin first came into being in 2008. Since it’s origination it has operated without much disruption. Any problem found in the past, associated with Bitcoin was found to be a human error, a human with bad intentions, not a flaw in the Bitcoin concept.
For over 40 years the internet has been around and has proven itself to be quite durable. This record sets a good example of the durability that is ahead for Blockchain. Consequently, it continues to develop and continues to deploy new uses for the Global market.
Blockchain – Transparent – Incorruptible
The blockchain network is a kind of a self-auditing ecosystem that reconciles every transaction that happens every ten minutes. Each transaction is called a block. As a result, data is embedded within the network as a whole so it is public, therefore transparent. No one is able to corrupt the data. A huge amount of computer power would be necessary to alter any data. Currently, it is virtually impossible to do and becoming more and more impossible every day because of larger and larger barriers.
A network of nodes
The blockchain is made up of a network of computing “nodes”. What is a “Node”? A “Node” is a computer connected to the blockchain network. The “Node” uses a client that performs tasks of validating and relaying transactions. A “Node” gets a copy of the blockchain, which gets downloaded upon joining the network. Together a powerful second-level network is created. A completely different vision of how the internet can operate.
Bitcoin and How Nodes Work Together
Every node joins the network voluntarily. Therefore, the network is essentially decentralized. However, each incentivized for participating in the network. The prize is the chance of winning Bitcoins competing to solve and be verified as the solution. The proving proof of work, and then creating the “minted” blockchain of information. As a result, being rewarded a specific amount of bitcoins for the completed block in the blockchain.
In the past, the internet was a way to share “emails” and information on the superhighway. It grew and grew into a massive commerce site for jobs and revolutionized the industry. Today, with Blockchain, it is happening again. Technology moves so rapidly all based on the ideas of decentralized solutions.
There are continuously growing Bitcoin-like cryptocurrencies (exchangeable value tokens) already available. In addition, you can find a complete list of other types or copies of the original blockchain idea. These ideas are currently active or in development. Because there are literally no barriers to the uses and deployed solutions of cryptocurrencies. They will be a part of our everyday lives (if not already) in the immediate and ever-advancing future.
Blockchain details: The idea of decentralization
The blockchain functions as a whole network so anything that happens in blockchain happens in the network.
- With the creation of new ways to verify a transaction; some specific ways of doing business may become obsolete.
- Trades become almost simultaneous on the Blockchain. Cryptocurrency and ICO/Token trades done at the same moment in time. Rendering a World economy of trades happening 24/7/365 with no markets opening or closing.
- All vital records, like a land registry, now fully available to the public.
- A worldwide network of computers using the blockchain technology to jointly managing the database that keeps the records recorded and structured. As a result, information is up-to-date and available at all times.
A network manages the blockchain. And not anyone central authority. To add definition; “Decentralization” means the blockchain network operates on a digital basis. It is a digital ledger that records transactions across a large number of computers in many locations; so that any involved record cannot be altered retroactively, without the alteration of all subsequent blocks.
Blockchain details: Who will use this technology?
Keep in mind; you do not need to know about the technology for it to be useful in your life. We don’t know how computers work exactly, but they have been enhancing everything in our lives for a long time. Not only in our lives but also around us with or without our knowledge of how they function.
Currently, this technology probably has the greatest offer for finance. Namely International remittances. As a result, the World Bank estimates that over $430 billion US in money transfers were sent in 2015.
Jobs and Careers are abundant in the blockchain. At the moment there is a high demand for developers. This is not going to slow down. Therefore, the reasoning for evolving into the blockchain is more and more relevant for virtually everything every day.
As we see it the blockchain admittedly cuts out the middlemen for all different types of transactions. Allowing access to the financial sector and the use of blockchain cryptocurrencies. This allowed access to the general public with the invention of “wallet” applications. These “wallets” were first put in use by people to make purchases with Bitcoin. You need to find a “wallet” that is a leader in Blockchain compliant solutions.
Blockchain details: Enhanced security
Blockchain is revolutionary. No type of technology has ever offered security, validation, and ‘Truth” like the Blockchain. This technology is necessary for total global solutions. With the blockchain storage solution, storing data across a network, the risk that comes with data being stored centrally is eliminated.
Computer hackers can no longer exploit the vulnerability that once existed. Blockchain eliminates that vulnerability. Take that hackers!!
Security problems on the Internet have been a problem for all of us. Everyone relies on the username/password system to protect your identity and assets on the Internet. Blockchain eliminates that and uses a security method using encryption technology. Consequently, Internet Security has evolved along with most all aspects of the Internet. All for the better.
Encryption methods are known as keys, public and private. To explain further: a public key is a long, randomly-generated string of numbers. This is a user address on the blockchain. When Values (ex: Bitcoin is sent across the Internet) it is sent with that Key. The record will show that Bitcoin belongs to that address that belongs to you. The private key is like your password or your “key” to access the Bitcoin you sent using your Public key. The blockchain protects any data it stores.
The blockchain is incorruptible. The thing you have to protect is your Private Key!!
All Records Will Show They Belong To That Address
Methods for protecting include:
- Print your “private key” and keep it safe. Also known as a paper wallet.
- Cold Storage Solutions. There are electronic devices available to store your keys such as a Trezor which will allow you to keep your “Public Key” and its contents in a safe location with built-in and secure recovery points. These are available on Amazon.
Blockchain details: A second-level network
The Internet has gained a new layer of functionality with blockchain technology. Allowing users to transact directly with one another. Bitcoin transactions in 2016 averaged over $200,000 US per day. Blockchain has brought a new level of security to the Internet. Because of this, the new internet business is booming. Actually new internet business is projected to outperform traditional financial institutions. Furthermore, if you want to dig deeper Go here for the latest in Market Cap to see how much Internet business has grown.
In 2017 it was published that Goldman Sachs was of the belief that this new technology was of great potential. They felt that the clearing and settlement of financial transactions could be optimized with the new technology. They claim it could represent global savings of up to $6 Billion per year. It seems that even the likes of Goldman Sachs underestimated the power of the blockchain.
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