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What is Blockchain Technology? Blockchain Explained, Wallets, Wiki, Tutorial, Info

What is Blockchain Technology? Blockchain Explained, Wallets, Wiki, Tutorial, Info
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The world of cryptocurrency was reported to hover a whopping $460B (where a single bitcoin gets traded for $11000) on 1st March, 2018. Initial coin offerings (ICO) exploded the market like never before and has already closed on $2B+ by February, 2018. Large business conglomerates such as Pfizer and Walmart have accomplished flourishing blockchain pilots. So, the buzz on Blockchains & cryptocurrency is discernible, loud & clear, making their way to the headlines of International dailies and becoming the impetus of tumult in the global economics.

Breaking the Ice – What is Blockchain Technology ?

what-is-blockchain
What is Blockchain

Blockchain is a digital, decentralized ledger which, stores a record of all transactions taking place within a peer-to-peer network, adhering to a set of protocols for formalizing new blocks. The information being held on the blockchain remains as a shared and all-time reconciled database, conveying a myriad of benefits for the users. The entire database is not stockpiled in a single location, thereby keeping the records as easily verifiable for the public. There is no centralized version of the stored information and thus, it becomes impossible for the adversaries, hackers and cyberpunks to corrupt or decode. As it is being hosted by millions of computers on a synchronous basis, the data can be accessed by anyone using the web.

Also Read: What is Cryptocurrency – Mining, How to Buy & Invest – Everything You Need To Know!

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What Led to the Invention of Blockchains – Blockchain Technology Explained!

Blockchain-technology
What is Blockchain Technology?

Though this groundbreaking technology has been brought into practice in the bygone decade, its roots can be detected way back to a distant past. The unprecedented concept of mutual distributed ledger was introduced on a paper on ‘New Directions in Cryptography’ in 1976, which resembled the mechanism of the present well-acclaimed blockchain technology. The concept was further fine-tuned and published on the paper “How to Time-Stamp a Digital Document” in the era of 1990s. However, it required the seamless integration of modern computers along with precise implementation of cryptocurrency and a much more radical approach for refining the viability of these ideas. The blockchain needs to employ a set of complex calculations for validating the blocks as a conventional private ledger. In 2009, bitcoins were unveiled for the first time to the world of global finance, which brought together the quintessential concept of digital, decentralized, mutual distributed ledger, termed as the Blockchain that is not controlled or regulated by an individual or organization. Invented by the anonymous Satoshi Nakamoto, cryptocurrency facilitated a method of conducting transactions by protecting them from trespassing or intervention by the usage of blockchains.

The Blockchain Mechanism – How does Blockchain Work ?

Blockchain Mechanism - How does Blockchain work?
The Blockchain Mechanism – How does Blockchain work?

Considering its prodigious potential, it has earned wide acceptance in a vast arena of industrial domains including Aerospace & Defense, Shipping & Logistics, Health care, Retail & Manufacturing, and is not limited merely to the financial sector. As a new aspiring entrant, if you have made up your mind for taking a dive into the threshold of bitcoins, then here’s a sequential brief on how the technology works.

  • Step 1: A transaction request is made by the user.
  • Step 2: The request gets broadcasted to a peer-to-peer network, comprising of a network of computers, termed as nodes.
  • Step 3: The network of computers validates the user’s status and transaction by using algorithms.
  • Step 4: After verification, the transaction is integrated with a set of other transactions for forming a new data block for the ledger. A validated transaction can consist of cryptocurrencies, records, contracts and other confidential information.
  • Step 5: The new block is added to an existing blockchain for making it unalterable and permanent.

What are Smart Contracts Blockchain ?

According to Blockgeeks, Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

  • The best way to describe smart contracts is to compare the technology to a vending machine.
  • Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document.
  • With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account.
  • More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.

Types of blockchain wallets – Bitcoin, Ethereum, Litecoin, Ripple & more

blockchain-types
Blockchain Types

The blockchain technology bags up an array of options when it comes to trading. However, with the intent of guiding the risk-taking venture, perceiving the agenda of investing in blockchains, here’s a quick rundown on some of its major options.

  • Bitcoins: It was the trailblazing of a decentralised online ledger, the enigmatic story of its origin and skyscraping reputation that brought it into the spotlight. Bitcoins have often been the bone of contention within the cryptocurrency community because of which, numerous deviations can be observed in between the ‘Core’ Bitcoin blockchain and the originally proposed peer-to-peer electronic cash system. These include a host of things like Dogecoin, Litecoin, Vertcoin and much more.
  • Ethereum: It is an open-source, blockchain-oriented and public distributed computing protocol that attributes the smart contract functionality (scripting), which can be registered, collected and executed. It showcases similar characteristics to that of Bitcoins in the sense of enabling transactions via its ‘ether’ token.
  • Ripple: The Ripple Transaction Protocol (RTXP) is known to be an open-source, digital, distributed consensus ledger, native currency (XRP) and Internet protocol, popularly known as the third most traded cryptocurrency as per market capitalization. This serves as a great medium for conducting almost free, safe and instant global financial transactions without paying any charge pack.
  • Litecoin: Here comes another propitious one in the league; Litecoins. Being a form of open source software platform and peer-to-peer cryptocurrency, it is released under the MIT/X11 license where the genesis and transfer of coins is not regulated by any central authority. The Litecoin prices are taking an all-time high surge and are much quicker and cheaper compared to Bitcoins.
  • Other Blockchains: Titanium Blockchain, EOS Blockchain, NEO Blockchain, Monero Blockchain & so on

Striking the Chord Right – How to Invest in Blockchain ?

Before investing in Blockchain, It’s so important to learn about Blockchain transaction, Blockchain Investment & How blockchain works? Below is the perfect to get information about How to create a blockchain transaction?

how-to-create-a-blockchain-transcation
How to create a blockchain transaction

While venturing out in the breakthrough of tremendous gains, you will come across a myriad of potential ways to invest in blockchains. However, a prudent decision-maker will be the one who will judge the amount of risks involved and impending gains he can earn before choosing the right path. Following here’s a brief on the major conducive routes to measure before making the final call.

  • Stockpiling: Alike gold stockpiling, bitcoin stockpiling is known to be one of the basic investment principles in cryptocurrency. It works on the core of supply and demand, stating that with limited supply, as its demand rises, the value also starts rising up.
  • Penny Stocks: Bitcoins are not the only option when it comes to investing in digital currencies as other significant penny stocks such as Litecoin and Altcoins are making their way to the market. Over the years, a host of alternative digital currencies have been developed for competing with the Bitcoin, however, many of them have failed in surpassing the potential of it. These cryptocurrencies were developed to serve a variety of purposes including increased privacy, escrow services, digital asset registry and much more. Adhering the same, some of the trendsetting Bitcoin penny stocks like Global Future City Holding, Bitcoin Shop Inc and American Green Inc provide an array of well-paying penny stock investment schemes.
  • Altcoin Crowdfunding: A unique crowdfunding method can be one of the most widely-accepted ways of digital currency trading by using alternative coins, where the total coin supply is ascertained by premining and then sold in the ICO, before launch of the network.
  • Angel funding and Startup Ventures: The opportunity of investing in startup ventures, developed on blockchain mechanism is where from the concept of angel funding upsurged. With Bitcoins becoming a widely-accepted method of the mainstream business, many aspiring entrepreneurs have started experimenting with the core of it, which required sufficient funding. Though, this groundbreaking investment concept is new to the blockchain frontier, it involved significant risks which, is certainly not for the risk-averters.

Blockchain Revolution – The Stakes are High..and so do the Returns

Challenges Benefits
Complex Technology Increased Transparency
Regulatory implications Accurate Tracking
Implementation Challenges Permanent Ledger
Competing Platforms Cost Reduction

Predicting the Future…

future-of-blockchain-technology
Future of Blockchain Technology

Bitcoins emerged as a global sensation in the second half of 2017 and its future is expected to be certainly glorious and prospering. However, the digital currency is still experiencing a major shortfall of the elemental attributes of money and treated more as a speculative commodity. Thus, the prolonged pursuit to functionality refinement is on, considering the launch of a series of breakthrough inventions. Blockchain is about to revolutionise a wide arena of industries, including the major innovations including making payments with cryptocurrency, adoption of cryptocurrency in mainstream banking, financial automation, system integrity. Beyond the bounds, technologists are conducting numerous research studies and experiments on amalgamating the blockchain technology with artificial intelligence to refine its anatomy and make it more mass-acceptable.

Tutorials and Conceptual Videos

1. Understand the Blockchain in Two Minutes

2. How the blockchain will radically transform the economy | Bettina Warburg

3. Blockchain Expert Explains One Concept in 5 Levels of Difficulty | WIRED 

 

4. How does a blockchain work – Simply Explained


5. What is Blockchain

Final Word to the Wise

Thorough market research and rational wisdom are two indispensable requisites for an investor before diving into the affluent dynamics of blockchain and cryptocurrency. So, stay opportunistic, stay abreast, stay quick-witted yet rationalistic and pave your own smooth path to the zenith of success, while ranging over all the potholes and bumpers.


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