The blockchain is a distributed database of records of transactions or digital activity shared and executed by participants in a specific system. In it, you find all the records of every transaction.
Trying to understand blockchain is difficult. However, with step-by-step explanations, understanding the concept behind it will not be difficult.So, are you ready for a simpler explanation?
A Simple Way to Define Blockchain
The blockchain is an incorruptible pre-programmed digital ledger that records transactions of value in the digital world.
Let’s break it down:
- Picture of a digital database. Think of something familiar like an excel sheet. We share this database across many computers (we call them ‘Nodes’) and it is public. You can use as many nodes as you want to share the database.
NOTE: The more the nodes you have, the more secure the database. It is always good to have as many nodes as possible, running the blockchain.
- As soon as anyone changes the database, it automatically updates and downloads to every computer (node) in the network.
- Not only is it hard to compromise this database with so many nodes, but they also encrypt it. Blockchain uses cryptography on a different level, making it almost impossible to hack.
NOTE: A hack can only happen if someone can compromise at least half of all the nodes. That is why it is good to have as many as you can. It makes it harder for anyone to access half of them.
That is the simplest way of explaining blockchain.
Why Is Blockchain So Important
The fastest rising form of recording and executing digital transactions safely depends on blockchain. We tie the future of money up in blockchain. It may be complex, but industries are adopting it for the many benefits it offers.
Falling behind on the competition is something that most of the financial institutions and businesses of this world do not want. It is becoming clear that transactions done using cryptocurrency are rising in popularity.
Cryptocurrency is entirely dependent and built on blockchain technology.
In simple terms, the benefits listed below are why blockchain is the most important invention in monetary transactions in recent times.
- Transparent transaction
- Cheap transaction fees and maintenance
- Faster transaction times
- Efficiency levels are high
- Fraud protection is near perfect
Using blockchain in transactions has changed the face of the economy across the globe. To understand what you stand to gain when you learn how this works, you need to know how many industries the Invention of blockchain technology and its use in the cryptocurrency have disrupted.
Here are some major ones:
- Real estate
- Legal industry
You have probably noticed that most of the industries affected are the ones we depend upon the most to function as civilization. Blockchain is the future and that we need to understand and use it now so that the transition can be easier and quicker.
Something People Get Wrong: Bitcoin and Blockchain
New people in the industry often get blockchain and bitcoin confused, believing them to be the same thing. However, they are not. Bitcoin is a digital currency, and blockchain is the technology bitcoin uses to allow secure, anonymous, and pubic transactions.
Blockchain is the DNA material that makes up bitcoin. It is the platform on which bitcoin stands.
In simpler terms, think of blockchain as an operating system in a computer. Bitcoin would be an application that runs on this operating system. Once you can understand the things people confuse, you can start using the cryptocurrencies to benefit yourself and make your transactions more secure.
Most people think learning cryptocurrency and blockchain is hard. It may be hard sometimes but when you understand the basic concepts, you can be able to manipulate everything else based on your basic knowledge.
How Are We Going to Learn Blockchain?
In learning blockchain, we will need to cover everything of importance. The topic is vast and will require more than just one lengthy guide to grasp. We have broken everything down into pieces to make sure you get value.
We will use topics and subtopics in a progressive curriculum that takes you from the basics of definition, all the way to the complexities of cryptocurrency.
Everything is easy to break down into its constituent parts and served up in a way that’s easy to understand. We have taken all there is to know about blockchain and cryptocurrency and split it into topics.
We will get into every topic in-depth. After you finish reading the material, you will have a firm grasp of how the cryptocurrency industry and blockchain technology work together.
We understand that the most effective way to learn any new topic is to have an outline.
We have prepared everything using an outline that will take you from the beginning to the end. I’ll research included everything experts now and everything that people in the industry have discovered.
To learn what cryptocurrency is all about, we will have to look at the following important things:
- Introduction to blockchain
- Mining methods
- Understanding Bitcoin and other Alternative Coins
- Understanding how the currencies work, using blockchain
- Introduction to Wallets and QR codes
- Learning about ICOs and IEOs
- How you can store your cryptocurrency, buy new currency, and transfer what you have.
- Analysis from a technical and fundamental position
- Active vs Passive Investment
When you finish all these topics, you’ll be able to understand how the currencies work and how you can leverage your knowledge to enjoy the technology.
What started on the fringes has now become mainstream and has gone to a global level known to most people. Adventure into this guide and learn everything you need to know about cryptocurrencies and the change they will bring to the global economic system.