Blockchain – Details everyone should know. The world, as we know it today, is already a different place. Look at all the adjustments we have had to make just to accommodate COVID-19. Not only are we shopping for groceries online, but we are ordering our meals to eat in instead of eating in restaurants. We are even learning to cook healthier meals and exercise more. Our habits are changing for the better.
I have spent more time on the internet in the last 6 months, than I have in the last 3 or 4 years. I am learning so many new things. One new topic for me is Blockchain. It may, or may not, be new to you. As I searched to learn about it, I got more confused. It is such a technical topic. I am a pretty knowledgeable person, and I have a BS in Management Information Systems. I thought I could pick this up pretty quick. Some of it I did, a lot of it I did not. My goal here is to put this simpler terms, so that the average person can understand what it means.
What is Blockchain?
The simple question here is, what is blockchain? At the most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we use “block” and “chain” here, we refer to digital information (block) being stored in a public database (chain).
Again, what is blockchain? How will is it useful for me? Follow along with me to learn the information everyone needs to know about blockchain.
Blockchain is a shared, permanent ledger that promotes the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, a car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Essentially, anything of value can be tracked and traded on the blockchain network, reducing risk and cutting costs for all involved.
The Need for BlockChain
The development of the blockchain was under context of one primary goal. That was the need for an efficient, cost-effective, reliable, and secure system for conducting and recording financial transactions.
Understanding the current transaction system:
Throughout history, instruments of trust, such as minted coins, paper money, letters of credit, and banking systems, have emerged to facilitate the exchange of value and protect buyers and sellers. Additionally, important innovations (for example, telephone lines, credit card systems, the internet, and mobile technologies) have improved the convenience, speed, and efficiency of transactions while shrinking — and sometimes virtually eliminating — the distance between buyers and sellers.
Current System Limitations
- Firstly, cash is only useful in local transactions and in relatively small amounts.
- The time between transaction and settlement can be long.
- Repetition and the need for third-party validation and/or the presence of brokers adds to inefficiencies.
- Fraud, cyberattacks, and even simple mistakes add to the cost and complexity of doing business. Thus, exposing all participants in the network.
- Credit card organizations are gilded cages with a high price for entry. Merchants must pay high costs for onboarding, often involving considerable paperwork, and a time-consuming vetting process.
- Half of the world’s population does not have access to bank accounts, requiring them to develop parallel payment systems to conduct transactions.
- Limited transparency and inconsistent information hinder the efficient movement of goods in the shipping industry.
Transaction volumes worldwide are growing so fast, which, in turn, magnifies the intricacies, vulnerabilities, inefficiencies, and costs of current transaction systems. The growth of e-commerce, online banking, and in-app purchases, coupled with the increasing mobility of people around the world, have fueled that growth of transaction volumes. And transaction volumes have exploded with the rise of Internet of Things (IoT) — autonomous objects, such as refrigerators that buy groceries when supplies are running low and cars that deliver themselves to your door, stopping for fuel along the way.
To address these challenges and others, the world needs faster payment networks that provide mechanisms to establish trust, require no specialized equipment, have no chargebacks or monthly fees, and offer a collective bookkeeping solution for ensuring transparency and trust.
Blockchain Benefits
Blockchain is a system, with no centralized control, to bring every user the highest degree of accountability. This results in several factors:
- No more missing or corrupt transactions.
- Puts a stop to human and/or machine errors.
- No more corrupt or broken databases.
- Stops transactions or exchanges made in error or with no consent of the parties involved.
- The blockchain guarantees the legitimacy of a transaction by recording it, not only on a main register, but on a connected distributed network of registers.
- Employs a secure validation protocol.
Blockchain technology is referred to as Internet 3.0. Otherwise known as Evolution of the Internet – better – safer – truth.
A network of nodes
The Blockchain is made up with a network of computing “nodes”. I had to ask what a node was, so if you are scratching your head right now, that is OK! A Node is a computer that connects to the blockchain network using a client that performs the task of validating and relaying transactions. Each Node gets a copy of the blockchain automatically downloaded upon joining the network. Together they create a powerful second-level network, a completely different view for how the internet can function.
Nodes and Their Role
BITCOIN
Every node is an “administrator” of the blockchain, and joins the network voluntarily. However, each one has an incentive for participating in the network: the chance of winning Bitcoins (Cryptocurrency of the internet), proving proof of work, and then creating the “minted” blockchain of information and being rewarded a specific amount of bitcoins for the completed block in the blockchain.
The internet used to be the place to share “emails” and information. It has grown into this massive place for commerce, jobs, and it has revolutionized industry. Now, blockchain is changing the internet again. It is evolving into the next level of technology based on decentralized solutions and “truth”.
Other Cryptocurrencies (exchangeable value tokens) that are Bitcoin-like are 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. There are no barriers. The uses and established solutions will be a part of our everyday lives in the immediate and ever advancing future.
The idea of decentralization
The blockchain is decentralized technology, as it was originally created.
Anything that happens within the blockchain is a function of the network as a whole. Hence, some important implications are now realized by this:
- Certain aspects of traditional commerce become unnecessary when new ways are created to verify transactions.
- Cryptocurrency and ICO (initial coin offering)/Token trades become almost simultaneous on the blockchain. Meaning markets can operate 24/7/365 with no opening or closing. Global.
- Vital record keeping, like a land registry, is now fully public.
- A global network of computers uses blockchain technology to jointly manage the database that records the recorded and structured transactions. Making information up-to-date and available at all times.
Blockchain is managed by its network, and not by any one central authority. To add definition; “Decentralization” means the network operates on a user-to-user basis. This creates “truth” and the possibilities from all forms of mass collaboration this makes possible are just beginning to be investigated.
Who will use the blockchain?
Now, think about this, Blockchain is not something you do not need to know about for it to be useful in your life. Look at computers, they have been enhancing everything around us with or without our knowledge of them and how they function.
In Addition, finance offers the strongest use cases for the technology. International financial transfers, for one example. As a result, the World Bank estimates that over $430 billion US in money transfers in 2015.
Employment opportunities 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.
Consequently, the blockchain potentially cuts out the middleman for all types of transactions. Hence the reason new methods for generating and being part of creating new monetary gains are higher than ever.
Access to the financial sector and use of blockchain 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 Coinbase for any blockchain wallet or ICO direction, need, or resource.
Enhanced security
The security, validation and “Truth” offered by blockchain is revolutionary and necessary for total global solutions in all sectors. By storing data across its network, the blockchain eliminates all of the risks that come with data being held centrally. That is especially relevant today. The Blockchain lacks those centralized points of vulnerability that allow the computer hackers entrance into centralized systems for exploitation.
If you think about it, you have most likely been touched in some way by today’s internet security problems. We all rely on the “username/password” system to protect most everything in our lives, our identity and our assets online. Blockchain security methods use encryption technology. This means that internet security, along with most other aspects of the internet, have evolved along with blockchain.
What is a KEY?
A Key is a method of encryption to keep your information safe. There are public and private “keys”. A “public key” (a long, randomly-generated string of numbers) is a users’ address on the blockchain. Values (such as Bitcoins, or any Cryptocurrency or Designed Variable) are sent across the network and are then recorded as belonging to that address. The “private key” is like a password that gives its owner access to their Bitcoin, other cryptocurrency, or other digital assets. When you store your data on the blockchain, it is incorruptible. This is true, although protecting your digital assets will also require safeguarding of your private key.
Methods for safeguarding include:
- By Printing it out. This creates what we refer to as a “paper wallet”.
- Purchase a Cold Storage solution such as a Trezor. It allows you to keep your “public key” and its contents as you access them from the blockchain in a safe location with built in and secure recovery points. Click on the photo to purchase your today.
A second-level network
By introducing blockchain technology, the internet gains a new new level of functionality. The internet has introduced a safer place do business across every industry around the world. We traditionally think of Finance and computers, when we think of the blockchain, and the blockchain will ALWAYS involve those two things, but lets look at a few other industries:
All 5 of the above Categories are things that affect our everyday lives. The Blockchain can improve the way we do business with them, make it safer.
All-in-All…..Blockchain is a positive, innovative change to the internet. Allowing for Decentralization, Transparency, and Protection of information, something we all want.
Want to get involved?
Want to be a part of the future? I’ve recently discovered cryptocurrency mining. You can Become a Miner of Cryptocurrency on the blockchain in the easiest manner possible. Consequently, you do not need to fully understand it or put capital at risk. VISIT HERE for the details on how you can safely and securely use your Computer (when you are not using it and it would be otherwise idle) to benefit and earn BITCOIN. BITCOIN is one of most productive forms of Cryptocurrency, and you could be part of that process. This is creating the possibility of millionaires among even the simplest and non-understanding of us out there. It is real. I am doing it on my own computer. In conclusion, this works without you fully understanding it.
This can be a lot to take in. Bookmark this page and come back for more information, or to review this information. While the information provided will only increase your appreciation for this education on blockchain, there is nothing but growth and adventure for us all to witness. Stay in the know on the blockchain details here. Subscribe on the right so you can keep up to date with all the new blockchain details, services and fun!
