The phrase is becoming so common it seems like it is everywhere you look now, but what is blockchain? Today we are going to clear up any confusion and hopefully set the record straight.There are three things you should know right off the bat.
- Block Chain Technology was invented in 2008. It was created as the driving force behind Bitcoin currency.
- You can consider each and every block to be a recording of a new transaction.
- Each new transaction is added to the chain of transactions or “block chain”.
Because cryptocurrency is encrypted, processing it means solving complicated mathematics. As the block chain grows longer and longer this math becomes more and more difficult to solve. Some people use specialized computers to solve these equations. Those people are called cryptominers (or “miners” for short) and the process is referred to as cryptomining (or just “mining”). Those who can complete the task of solving these complex math problems are rewarded with cryptocurrency.
Owning this type of currency means that you have an address to where the currency is located in the chain. The entire blockchain is completely public. This means that the block chain does not depend on anyone or anything to continue operating uninhibited and any transaction is instant and can even be completed without the use of the internet. In this way it is known as being decentralized. To many, this new decentralization seems like an exciting alternative to the current banking system. Furthermore, this technology isn’t just being used for currency anymore. As a technology it is spreading out and making its mark on other technologies. It is being used in all kinds of new ways, from voting booths, to medical records. It is just the beginning as we start to implement this new technology.
I hope that was helpful. If you have any questions or comments leave them below!