Blockchain is a technology that allows digital data to be shared without being copied. This technology was initially designed for Bitcoin, but as it turns out, it can be used in numerous ways. It is a revolutionary concept that will have a big impact on the way we use the internet in the future. Although the average internet user doesn’t need to know exactly how this technology works, it is important to have a basic understanding of it, since it will most likely be used by everyone in the future.
Why you need to understand the blockchain technology
You don’t actually need to understand this concept completely, the way that a developer does, but you need to have a basic understanding of how it works in order to make use of it. Obviously enough, if you plan on investing in this market, it would be wise to work with experts that have a deep understanding of this tech, as the market is still very volatile. We personally recommend the Stonegate Blockchain Fund Formation, as their team comprises of experts from various fields which constantly monitor this fast-moving market.
Nonetheless, even when you work with experts, you still need to know a few things about the technology in which you are investing your money. Think of this tech as if it were your car. You don’t need to be a mechanic and know exactly the purpose of each of the vehicle’s parts, but you do need to know how it works, what powers it and how you can use it. The same thing is true for the blockchain tech. Only by understanding how it works and how it can be used, can you really benefit from its advantages.
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A brief history
The story of the blockchain technology starts with the invention of bitcoin, the first cryptocurrency. Developed in 2009 by a person, or a group of people, going by the name Satoshi Nakamoto, bitcoin came with the first blockchain database. In 2013 VitalikButerin, one of the Bitcoin Magazine writers proposed to extend the bitcoin concept beyond currency.
He envisioned a platform where people to distribute data for the Blockchain network. His proposal gave birth to a strong developer community, the EthereumDapps platform, which raised billions in venture capital. However, due to too much exposure, constant hacking and several tech limitations, the platform started to experience a downfall. Nonetheless, the obvious potential of the blockchain concept gave birth to several competitive platforms, which are bound to deliver some revolutionary technologies in the following years.
How does it work?
One of the biggest advantages of the internet is the ability to instantly share data anytime, from anywhere in the world. However, the main problem with this concept was that shared data could easily be copied by anyone who viewed it, which only made it possible to share data that didn’t have any real value. At least this is how things were until blockchain was invented. This technology made it possible to distribute data online without allowing it to be copied. Simply put, it allows users to send data instead of sharing it. The data is stored in a database hosted by millions of computers. This makes it possible for anyone to access it, but without a centralized version, it is close to impossible to hack. Because of its effectivity and legitimacy, many companies are now using this new technology. Here are some industries currently using blockchain:
* Fintech
* Finance
* Gaming
* Ecommerce
* Social Media
Main advantages
• Transparency
All the data stored in the database is public, meaning that it can be seen by anyone at any time, from anywhere in the world.
• Incorruptible
Since its invention in 2009, Bitcoin has experienced very few disruptions. The platform has no single point of failure in the way it operates, and the minor disruptions that it did experience were on account of human error or hacking. Nonetheless, even hacking the network requires a large amount of computing power, but the trick is that hacking the network is kind of pointless, as stealing bitcoins will actually destroy their value.
