Trading and investing in Bitcoin is a risky business and is entirely dependent on you understanding the tech behind it. Understanding all of the intricacies that go into Bitcoin, including understanding the tech, implementation, and tech behind the blockchain will help you decide if it is worth your money, and be able to make intelligent investment decisions. Investing in Bitcoin is a risky business, and is entirely dependent on you understanding the tech behind it So, what’s Bitcoin? Bitcoin is a form of digital currency with no government backing, yet can be exchanged online for goods and services in much the same way as currency or a gold or silver coin.
What is a blockchain?
A blockchain is a public ledger containing an unchangeable record of each and every transaction that has ever taken place in any public exchange. In the Bitcoin blockchain, Bitcoin transactions are recorded in the blockchain as blocks and each block contains a timestamp and a link to the previous block, which contains the previous timestamp and the link to the previous block. Why is this new technology so revolutionary? To put it simply, a blockchain is a digitized ledger of any and all transactions from any point in time. With the exception of specific trade contracts, the transactions of all other parties, including banks, are recorded in the ledger. The ledger does not change, it is immutable.
How does blockchain work?
Blockchain is the best-known form of distributed, encrypted transaction data. Each member of the blockchain community connects their node to the public ledger and shares their transactions and their fees. What’s so cool about blockchain?
What is blockchain technology?
The blockchain was invented in 2008 by a cryptography graduate student, Satoshi Nakamoto, and as the name suggests, is really a system for recording transactions and data in the form of blocks. Each block records digital proof that transactions occurred without being altered by one or more parties. And once a block is confirmed, it becomes part of the permanent blockchain and can never be tampered with by any person. According to Futurism, the blockchain could serve as a solution for exchanging and verifying financial information without the use of a central authority. The use of blockchain will also reduce costs as there would be no intermediary to control or monitor transactions.
What is the future of blockchain?
When the CEO of Block.com, Jeremiah Mount, was asked this question, he answered, “Since people still don’t understand blockchain technology, in order for us to fully realize its potential, the general public needs to be able to fully understand what blockchain is, how it works and why it can be such a valuable asset to our society. With our Blockchain Report, we have combined traditional journalism and data visualization into one easy-to-use resource. Our goal is to help people see how blockchain technology works and what it has to offer, so we can start the conversation and understand this technology in a way that drives demand for it.” According to Mt., “Blockchain technology’s biggest benefit will be as a system of record, the foundation for future applications.
Cryptocurrencies are an exciting and new technology and there is a lot to explore. Everyone can agree that cryptocurrencies are definitely here to stay, but what do we do with them now? Each cryptocurrency has a different purpose. Bitcoin, for instance, is great for buying things online. Other coins may suit you better, depending on the purpose of your life. So, figure out what you’d like to use and why. Here are the links for the top cryptocurrencies.