Block-chain explained Part ONE!
First you need to understand the difference between tokens and crypto currencies.
The term crypto token is regularly wrongly utilized conversely with the word’s cryptographic money and altcoins in the virtual cash world.
Yet, so, these terms are unmistakable from each other.
with the most mainstream digital currency being Bitcoin.
The digital money is the superset while altcoins (and crypto tokens) are two subset classifications.
Altcoins are elective digital forms of money that were dispatched after the enormous achievement accomplished by Bitcoin.
The term implies elective coins—that is—other than bitcoins.
So, they were dispatched as improved substitutes of bitcoin with the cases to beat a portion of the trouble spots of Bitcoin.
are normal instances of altcoins.
Though each has tasted shifting degrees of accomplishment, none have figured out how to acquire ubiquity much the same as bitcoin.
Cryptographic forms of money and altcoins are basically explicit virtual monetary standards that have their own devoted blockchains and are essentially utilized as a mode for advanced installments.
and the tokens are utilized to work with the exchanges.
An easy recap;
tokens are on a block chain and easy to create,
and cryptocurrencies and alt coins,
are essentially specific virtual currencies that have their own dedicated block-chains.
Blockchain explained part one
Countless discoveries and inventions have been made throughout
Some of the developments have been minor,
so some of them have been major,
some have been short-lived,
events have been more critical and longer lasting.
Therefore, have been certain developments throughout our history that have been
so vitally important to humanity that they are considered the sole
factor behind all of humankind,
collectively making progress and
taking a critical and everlasting step forward.
For example, consider how the creation of farming equipment and
so, fertilizers allowed for the exponential growth of food outputs from
fixed pieces of land.
Without these inventions and discoveries,
world would not have been able to support the explosive
population growth that we have witnessed across the globe.
It was only a few hundred years ago that scientists and economists
indicated the end of population growth,
due to the fact that food
production just grew at numerical rates,
doubling or tripling every
certain number of years,
while populations grew at exponential
rates, expanding to the power of two or more during that same
At the time, this meant that sooner or later there wouldn’t be
enough food to feed everyone unless more food could be
obtained from fixed pieces of land every year.
this is precisely what happened.
Science was able to deliver heavy farm
equipment, fertilizers such as ammonia,
and other improvements
so that that food harvests could keep up with the population growth rates.
This allowed for more people to be sustained in the same area of land as before.
Without these developments,
the world would be a very different place today.
Similarly, the creation of antibiotics, penicillin, the introduction of air travel,
and the steam engine, and more recently,
the sharing of information in the Information Age
that was made
possible by the invention of microchips and transistors,
changed the world irreversibly.
As a result of these innovations
we are more connected,
have more accessible and cheaper access to goods and services than ever before.
When it comes to the information age, things have progressed at
ever since the first dot-com wave in the early to
Everything from the user interface tools and technologies
that have defined how we interact and interface with technology.
Everything from payment solutions to banking
solutions have dramatically changed over the last 20 years.
The same can be said for social networks and primary email,
along with the advancements that have been made in fields of
artificial intelligence (AI) and big data analysis,
both of which have
an impact on everything from helping with governance to online
we’ve gone from necessary solutions for all
of the above to have sophisticated software services that combine
various aspects of technology to deliver effective,
and seamless services to billions of people around the
However, with all the progress comes new challenges.
and the ability of governments to implement mass
and the ubiquity of technology all around
have begun to pose serious ethical questions
This leads to the question,
where do you draw the line
between legal and illegal surveillance?
How can we, as a society
trust the data usage collection and manipulation practices of
companies and governments when they aren’t transparent.
When it comes to the role of government and big corporations and their relationships with private users,
where is the world headed?
it is with this exciting and challenging background in mind that
blockchain will be discussed.
In recent years, blockchain has
become a popular technology and so much more than the latest tech fad.
It is, in the opinion of many subject area experts and
so, the next giant leap for humanity and something that will have a significant impact on our children and us as the farming and healthcare developments of the past had an effect on
our great-great-grandparents more than a century ago.
now entered the new Information Age.
How Did Cryptocurrencies Develop?
Bitcoin is the most well-known cryptocurrency on the market.
It has been the recipient of hype, fame, and publicity.
public has been fascinated by its extraordinary increase in value over the last several years.
They have been awe-struck by the
of significant wealth that has been generated with bitcoin,
those who acquired it in its infancy,
when it was cheap.
Despite its novelty, people quickly realize that bitcoin is genuine
In addition to bitcoin, there are many other cryptocurrencies,
who like bitcoin,
have had massive increases in
their dollar value.
Legitimate government and businesses are
pursuing an increasing involvement in cryptocurrency.
Despite critics,the market for these currencies is thriving.
Blockchains are digital ledgers
But blockchains are digital ledgers and can be formally defined as a
continuously growing list of records that are linked tougher and
secured using advanced cryptography.
In more simple terms, a
blockchain is literally a chain of blocks.
So, each record in the list of a blockchain’s chain is called a block that contains specific types and pieces of information.
Each block will usually include some
sort of pointer as a link to the previous bock,
transaction data, and
which can take a variety of forms.
Another way to look at is that a block-chain is much like a database where each entry is linked to the previous and next entry.
But this means that the information contained within the Block-chain explained can’t be changed,
once a block with specific data is
added to the chain.
Depending on the chain that you are looking at,
therefore, are often useful tools for exploring that will allow you to
scan the transaction data.
Blockchains are resistant to being modified because of them
In addition, this allows blockchains to record transactions
between different parties efficiently.
These transactions are not
only verifiable but permanent as well.
Once information is recorded in a block chain,
so, the data cannot be altered after-the-fact without altering the subsequent blocks by having the majority of nodes on the network agreeing to the change.
Therefore, inability to change the data within a block chain make illegal or unfair actions almost impossible to carry out.
If a hacker wished
to alter information within a blockchain,
they would have to gain
control of every node.
But this security is one of the most useful characteristics of the block-chain.
Since blockchains are designed to be verifiable and permanent,
they are especially suitable for recording events,
drawing up agreements, fundraising,
keeping track of other documents.
Whether you are aware of it or not, you conduct business every
day, even if you don’t work. So At some point, everyone gets online and initiates some kind of transaction. Whether it is purchasing something from Amazon or
but buying something from iTunes, you are engaging in the business of block-chain technology.
Even though the term “blockchain” is relatively new,
technology has been around for about a decade.
in short ledger that Satoshi Nakamoto created in 2008 was the basis for the spreadsheets that manage cryptocurrencies and other online trading transactions.
The technology is used in cryptography,
which is how text is coded on the Internet.
However, Cryptography is used in blockchain technology to create distributed trust networks.
So, this, in turn, allows any contributor to the system to operate the transactions securely without having to obtain authorization from someone else in the digital ledger.
These transactions are then verified, approved, and then recorded in an encrypted block.
This block is saved intermittently and then connected to the previous block, which in turn creates a chain.
Components of a Blockchain
Two main parts make up a blockchain.
The first component is the
So, the decentralized network is what facilitates and verifies the transactions that are made.
So blockchains on a decentralized network means that the software isn’t limited to one computer system.
Instead, it can be controlled on multiple computer systems, and more importantly, it isn’t controlled by the government.
The second component is the indisputable ledger where the transactions are processed and recorded in a location that is secure.
Therefore, security makes it almost impossible for someone
so, who is not connected to the chain to make changes or steal information.
Since there can be numerous contributors involved in any
so any of the contributors can control the information that is entered into the ledger.
Since every transaction is processed
and given a permanent timestamp,
it can become
challenging for another contributor to alter the ledger in any way.
Therefore, blockchain technology can be used for various computerized and internet-based application.
One of these applications is smart contracts.
So smart contracts allow businesses to automatically verify and execute agreements that function independently in a secure environment.
But blockchain technology acts as a middleman for implementing all business deals,
protocols, and programmed
exchanges of information in smart contracts.
As more and more
transactions are completed online,
to not only run our personal lives but professional lives as well,
so, more and more deals are being signed and created online.
So blockchain applications have begun to become increasingly popular in the medical field in recent years.
But Researchers are now investigating these applications dealing with digital identity,
insurance records, and medical records.
There are many medical
in addition, offices today that use some kind of digital machine to verify that the information they have on file is,
in fact, your information.
One of the most significant issues people are faced with today is the thought that all their information could be compromised by hackers because most of our personal information is digitized.
It also seems that it has become too easy for complete strangers to access, copy and tamper with our data.
However, it is still a risk
that we all take despite the increasing probability of being hacked.
But blockchain technology was created to help ensure that doesn’t
so, happen or in the very least make it more challenging to try.
For someone to hack
the block-chain system,
they would need to
go back and change every single block.
That would require a ton
of effort and patience because blockchains could have upwards of billions of chains linked that a person would have to go through and change.
But changing just one or two blocks would automatically send an alert that the system is being hacked.
This is only one of
the many reasons why blockchain technology has become so popular.
So blockchain technology can be used for a variety of other things as well. It can also be used for global payments,
sharing music, or
tracking diamond sales.
Soon part two and in the meantime check the other blog posts like
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