What is the Blockchain and how does it work?
On this page, we will help you understand what is the Blockchain and how does the Blockchain technology work, especially as it relates to Bitcoin and Bitcoin Mining.
Basically, we will answer the following questions:
- What is the Blockchain and
- How does Blockchain technology work as it relates to Bitcoin and Bitcoin Mining
Let’s get started…
What if there is a technological advancement so powerful that it transforms the very basic pillars of our society?
A technology which fundamentally influences the way that our economy, governance systems and businesses function and changes our conceptual understanding of trade, ownership and trust?
This technology already exists and is the foundation of Bitcoin. It is called the blockchain.
The blockchain is a public record of Bitcoin transactions in chronological order. The block chain is shared between all Bitcoin users. It is used to verify the permanence of Bitcoin transactions and to prevent double spending (spending bitcoins to two different recipients at the same time)
The “blockchain” today is like the internet in the early 1990s and the investment implications are just as enormous.
The Blockchain is a Decentralized, Digital Ledger.
Its decentralized nature has made it impossible to “hack” since no one is able to alter the ledger in all the places
it resides at the same time.
The internet changed the way we record and exchange information. It made the flow of communication across the world faster and more efficient.
Trillions in value were created.
Likewise, the blockchain is changing the way we record and exchange value. It will make transactions across the world faster and more efficient.
Trillions in value will be created.
Yet, it’s so early in the game, many people still don’t even know about the blockchain or how they can profit from it.
And that’s creating wide-open opportunities for those in the know. By just reading this post, you are positioning yourself as someone in the know.
Remember, the internet was the same in its infancy. Many investors didn’t see its significance—or even know it existed—in the beginning.
Then web browsers came along and the internet was quickly on its way to mass adoption.
Early investors made fortunes.
Today, the blockchain is starting to gain traction. Eventually, these online distributed databases will be as ubiquitous as the World Wide Web.
And a new group of early investors will get rich like those at the start of the Internet Age.
A Decentralized Database
The blockchain is maintained by thousands of independent computers. These computers are constantly “talking” to each other to ensure the ledger is always valid.
By storing data across its network, the blockchain eliminates the risk that comes with information being held in a central location.
This “decentralized” network is much more secure than databases with central supervision.
(For example, it’s more efficient for hackers to try and break into one central site holding millions in assets than millions of individual computers holding hundreds or thousands.)
The blockchain is also faster, more secure, and more efficient than centralized networks.
That makes it the perfect technology on which to reinvent the financial system and the trillions of dollars that move around it daily.
A New Network of Value
Here are eight ways the blockchain will forever change how we use money:
The blockchain will eliminate the need for you to pay an intermediary (like a notary) to verify transactions.
The blockchain will make it easier for you to make payments, transfer money, or buy and sell goods.
You’ll move your money faster and cheaper with the blockchain than with traditional wire services like Western Union or MoneyGram.
The blockchain will let you store money digitally instead of using a bank, money market fund, or government security.
It could potentially make checking and savings accounts obsolete.
You will be able to make, secure, settle, and trade loans on the blockchain faster and easier than today.
Every day, trillions of dollars in financial assets are traded between parties.
The blockchain can cut settlement times from weeks and days to minutes and seconds.
Raising money now requires third parties such as investment bankers, venture capitalists, and lawyers, among others.
The blockchain will automate this process and eliminate the need for third parties.
More people will have access to capital than ever before.
The blockchain supports decentralized models for insurance that can make risk management more efficient. This will lower premiums overall.
The blockchain makes bookkeeping virtually automatic and instantaneous while keeping it 100% transparent.
As you can see, the blockchain will revolutionize how you use money.
But what most people do not know is that the blockchain’s impact will extend well beyond finance.
I hope this blog post helped you understand the Blockchain better.
I would really love to hear from you, please leave me a comment below : – )
Musa The Giant!