Much Ado About Cryptocurrency. What about the tech that powers it?

Blockchain is more than just the technology that powers cryptocurrencies like Bitcoin. In its fundamental form, blockchain technology is a huge, globally distributed database of information that is secure, reliable, and immutable. It is an open-source technology that is an automatically-updating record of events/transactions/information. Think of blockchain like a Google Doc or spreadsheet on Google Drive. Anyone with permission to view the document can see the changes made in real-time but cannot delete them or change what was there before. This feature is the immutable element in blockchain and it forms the foundation of trust in its system. This makes fraud impossible because everyone has access to the same information at all times.

It is, therefore, an incorruptible digital database of transactions that can be programmed to record not just financial transactions but virtually everything of value. In a nutshell, Blockchain records transactions and information across many computers so that the record cannot be altered retroactively without the alteration of all subsequent “blocks” on the “chain” (network of computers). The result is a secure, reliable, public ledger showing everyone who owns what at any given moment. This allows people who do not know or trust each other to transfer assets back and forth in a secure way without having to rely on an external authority outside the chain. This and many more are inherent features that make blockchain a powerful technology.

How can Blockchain be Leveraged?

Cryptocurrencies might be the first widespread application of Blockchain technology, however, the potential for this technology is far greater. Being a distributed database that can be used to record transactions and store data in a way that is both verifiable and secure makes it ideal for recording sensitive information such as financial transactions (crypto), medical records, legal documents, gaming, and even votes. Although it is a relatively new technology, the potential for this technology is huge.

Blockchain and Crypto:

Cryptocurrencies are digital currencies that are created and stored electronically in the blockchain, a public ledger. Cryptocurrencies are decentralized, they are not owned or controlled by a single individual or organization. The blockchain is the protocol used to create cryptocurrencies and it records every transaction made using the currency.

Bitcoin was the first cryptocurrency to be created in 2009, and since then hundreds have been created. Some of these cryptocurrencies have even been designed to be more useful than Bitcoin. For example, there is a coin called Ethereum that allows developers to create new applications on its platform.

If you are ready to take the dive into cryptocurrency, knowing the basics of blockchain is one of the first things you need to do.

Disclaimer: I am not an expert on this subject. Just an enthusiast trying to make sense of the hype around cryptocurrencies, NFTs, and Web3. Hence, learning the fundamentals and documenting my learnings by writing simple easy to understand articles deconstructing these concepts. I do hope I have done justice to this topic. Curious to read your thoughts in the comment section.