Whenever a new form of technology bursts onto the scene, many people are at first skeptical of what it has to offer, and blockchain has been no exception. A term many people have heard but few actually understand, it is associated primarily with cryptocurrencies such as Bitcoin. However, it actually can extend far beyond cryptocurrency. To get a better understanding of how blockchain is likely to impact you in the years ahead, here are the basics you need to know.
A Digital Ledger
Essentially, blockchain is a database that acts as a digital ledger. Since the database is managed on a computer network known as peer-to-peer, everyone within the network has access to the blockchain and all transactions recorded on it. While this sounds like the perfect opportunity to commit fraud, blockchain is virtually impossible to falsify or alter in any way due to the data being stored and tracked from so many different devices.
There is Not Just One Blockchain
If you have assumed there is only one blockchain in existence that people the world over use, you are mistaken. Actually, multiple blockchains are in use around the world at any given time. However, a blockchain is not simply computer software or a product. In the real world, a blockchain has no actual value. Rather, its value is created only when it is paired with other applications, such as the buying and selling of cryptocurrency.
It’s Used for More than Cryptocurrency
As you learn more about blockchain and how it applies to cryptocurrency by looking at the information found on cryptocurrency farming websites, you’ll also notice a blockchain is used for many other applications besides virtual currency. For example, musicians use blockchain to get paid directly when people buy or download their songs. Since this cuts out the intermediary, musicians don’t have to worry about others taking a cut of their revenue. In addition, blockchain is used for online voting. Since the blockchain is hard to alter or falsify, the voting process is very secure and also allows for a complete record of the voting should questions arise.
Blockchain is Transparent
Finally, blockchain is very transparent to all those who use it. Thus, whenever a transaction is completed, it can easily be viewed by everyone on the network. While users can choose to be anonymous, their transactions are not, meaning all participants know what is happening within the blockchain at all times.
Now that you know the basics about blockchain, you can feel much more secure about dealing in cryptocurrency, voting online, or conducting many other types of transactions. For more information about blockchain and cryptocurrency, visit https://www.eqifi.com/
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