What is Blockchain, and why is it so popular? – Malawi Nyasa Times
If you have spent any time on the internet in the past 14 years, then you have probably heard about Blockchain and cryptocurrencies. These are two words that have become household names, and it is nearly impossible to not follow the crypto evolution. But what is Blockchain and why is it so useful?
There is a lot to be said about Blockchain because it is a complex technology that holds a lot of possibilities. However, there are a few things that distinguish Blockchain from other technologies, and that is also the reason for its success and popularity.
Blockchain is what we call a peer-to-peer ledge system that allows peers to complete transactions without a centralized authority. There is no third party like it is when we make bank transfers for example. It is completely decentralized, which means that each peer has to carry a copy of the ledger.
Methods like proof-of-work and proof-of-stake among others are used to ensure consensus across transactions. The transactions done on the Blockchain are also completely secured with advanced cryptographic algorithms. The idea of Blockchain is in other words to build a network based on trust and transparency, making it the complete opposite of the centralized economy.
This is what makes Blockchain so amazing. It holds many opportunities across industries and has opened several doors. It is also why so many are interested in the phenomenon of cryptocurrencies and are attending a Blockchain course to learn more. Likely, it will only become more relevant as time passes, and something everyone should keep an eye out for.
What are cryptocurrencies?
The reason why Blockchain and cryptocurrencies are often talked about together is that there is a strong link between them. Cryptocurrencies like Bitcoin use Blockchain to make them safer, more efficient, and have many more opportunities. Cryptocurrencies are decentralized currencies that are not regulated by a national bank or any other financial institute. The value of cryptos is simply set after supply and demand. This is one of the reasons why the values can be highly fluctuant and change greatly from one day to another.
Furthermore, they are strictly digital assets, that can be used to trade, or make purchases. They are bought on a crypto exchange and kept in their crypto wallet. This is because it is different from fiat currencies in the way they operate and can therefore not be mixed in a common wallet. Bitcoin is the original cryptocurrency. It was first introduced by the pseudonym Satoshi Nakamoto in 2009. Together with Bitcoin he also introduced the world to the Blockchain technology, that Bitcoin uses to publicly bookkeep every transaction within the network.
This was a short introduction to Blockchain and cryptocurrencies, but there is a lot more to be said about it. Blockchain holds so many opportunities for people and industries across the globe, and it will be highly interesting to follow its journey. Who knows, perhaps we will all be tied to the decentralized economy in a few years.
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