What Is Blockchain Technology?
Blockchain technology uses math and cryptography, which provides an open, decentralized database for any transaction that involves value. These values can consist of but are not limited to, currency, goods, property, work or even votes. It creates a record whose authenticity can be verified by the entire community.
The future global economy will move towards one of distributed property and trust where anyone that has internet access can get involved in blockchain based transactions, thereby making third-party trust organizations no longer necessary.
Blockchain technologies will make it easier for people to send and receive money from anywhere with limited access to financial institutions. In addition, financial fraud will be significantly reduced, as every transaction will be recorded on a public and distributed ledger accessible by anyone with internet access. Think of blockchain as wills and contracts that execute themselves or dated proof of existence for ideas, much like a patent.
What Is Bitcoin?
Bitcoin is the first decentralized digital currency. They are coins that you can send and receive through the internet. Compared to other alternatives, Bitcoin has a number of advantages:
- Bitcoin is transferred from person to person via internet without going through a bank or clearing house.
- This means the fees are much lower than conventional means.
- You can use them in every country.
- Your account cannot be frozen.
- There are no prerequisites or limits.
How Does It Work?
Several currency exchanges exist where one can buy and sell Bitcoin for US dollars, Euro, Yuan, and more. Your Bitcoin are kept on your computer or mobile device. Sending a Bitcoin is as easy as sending an email or text message and you can purchase anything with Bitcoin.
The Bitcoin network is secured by individuals called ‘miners.’ Miners are rewarded newly generated Bitcoin for verifying transactions that happen. After the transaction is verified, it is then recorded on a publicly distributed ledger.
Bitcoin has enabled a whole new world of innovation and the software is completely open source; this means anybody can review the code. Bitcoin is changing the financial sector in the same way the internet changed publishing. When everybody has access to a global market, incredible innovation begins to happen.
Bitcoin is a great way for businesses to minimize transaction fees. It doesn’t cost anything for businesses to start accepting them and the process of setting it up is painless. There are no chargebacks and you’ll get additional business from the Bitcoin economy.
There are many reasons why I invest in Bitcoin:
- I can travel anywhere around the world without having to disclose to the local authority how much money I’m bringing into their county. This can reduce my exposure to potential violence in lesser-developed countries.
- Bitcoin has the power and technology to revolutionize the global economy and make financial transactions seamless and secure. I can send money for anything, anywhere around the world in a matter of minutes rather than days or even weeks.
- Finally, I think about the history of money and technology. It seems when technology advances, the currency adapts to that changing environment.
We expect to see the adoption of blockchain grow as businesses learn more about the technology and how it can be used as part of application and IT Infrastructure. Blockchain will secure some of our most important practices like electronic voting, banking and more in the foreseeable future.
*Disclaimer: These are my own personal views and perspectives and not financial advice by any means; please do your own due diligence.