What is Blockchain and why is it so popular? – Malawi Nyasa Times
If you’ve spent any time on the internet in the last 14 years, you’ve probably heard about Blockchain and cryptocurrencies. These are two words that have become household names, and it is almost impossible not to follow the crypto evolution. But what is Blockchain and why is it so useful?
About Blockchain
There is a lot to say about Blockchain because there is one complex technology which holds many 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 ledger system that allows peers to complete transactions without a centralized authority. There is no third party as there is when we make bank transfers, for example. It is completely decentralized, meaning that each colleague must carry a copy of the ledger.
Methods that proof of work and proof-of-stake, among other things, are used to ensure consensus across transactions. The transactions made on the Blockchain are also fully secured with advanced cryptographic algorithms. In other words, the idea of Blockchain is 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 the reason why so many people are interested in the phenomenon of cryptocurrencies and participate in one Blockchain course to learn more. It will probably only become more relevant as time goes on, and something everyone should keep an eye on.
What are cryptocurrencies?
The reason Blockchain and cryptocurrencies are often talked about together is because there is a strong link between them. Cryptocurrencies like Bitcoin use Blockchain to make them safer, more efficient and have many more possibilities. Cryptocurrencies are decentralized currencies that are not regulated by a national bank or any other financial institution. The value of crypto is simply set by supply and demand. This is one of the reasons why the values can be very fluctuating and change a lot from one day to the next.
Furthermore, they are strictly digital assets, which can be used to shop or make purchases. They are bought on a crypto exchange and stored in the crypto wallet. This is because it is different from fiat currencies in the way they operate and therefore cannot be mixed in a common wallet. Bitcoin is the original cryptocurrency. It was first introduced by the pseudonymous Satoshi Nakamoto in 2009. Along with Bitcoin, he also introduced the world to Blockchain technology, which Bitcoin uses to publicly record every transaction in the network.
This was a brief introduction to Blockchain and cryptocurrencies, but there is much more to say about it. Blockchain has so many opportunities for people and industries all over the world and it will be very interesting to follow the journey. Who knows, maybe we will all be tied to the decentralized economy in a few years.
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