AN INSIGHT INTO BLOCKCHAIN AND CRYPTOCURRENCY

If you are actively involved in the digital asset then you will agree with me that Blockchain and Cryptocurrency the two words used often. You may call them Siamese twins if you like because they need each other to survive.

As conjoined twins don’t have the same fingerprints. You can as well say Blockchain and Cryptocurrency are two different terms with a different meaning. One is a currency. One is an underlying technology.

The first time a lot of people must have heard of Blockchain is probably through Bitcoin. Since then, we have seen several Altcoins and applications that are being integrated into Blockchain.

Okay, I am sorry, I have been typing… Let’s just get down to the main business.

What is Blockchain?

A blockchain is a distributed ledger technology that forms a chain of blocks. These Blocks contain data that represents transactions carried out by you and me, and when a block is generated, all the data contained in the block becomes a principle and is added to the chain forever. All ledgers are updated to recognize this new agreement or consensus. These new blocks created and inter-linked together to form a chain and can be referred back to at any time. Hence the word Blockchain.

Does that make any sense?

Blockchain brings transparency in that, it allows real-time changes to reflect in the distributed ledger. When a change occurs, you can be certain that it is immediate and cannot be changed by anyone.

Blockchain also allows a seamless transfer of virtually anything that occurs in an online marketplace like buying, selling, investing, trading etc. without having to grow through and a middleman or a proxy while offering an effective and secure system.

What is cryptocurrency?

The first cryptocurrency, Bitcoin was created in 2009.

Aside Bitcoin, you would have heard of Ripple, Ethereum, Ontology, Cardano, Litecoin Dash, etc. probably on the News, radio, online or a friend is telling you to invest in one or the other, but what exactly is this cryptocurrency?

The first thing you need to know is that cryptocurrency is a digital asset. It cannot be held physically. It can only be spent using the internet. Yeah, I didn't make a mistake. I repeat it can only be spent using the internet.

Ok, let's go a bit more technical if you want you can just skip the next paragraph and move to the next one.

Cryptocurrency is an encrypted string of data that’s been encoded to signify a single, specific unit of currency. Cryptocurrency is produced when mathematical problems are solved that are based specifically on cryptography or the art of writing codes by developers. You see, you too can own your own cryptocurrency.

That wasn’t that bad. Let’s move on.

You might be asking where cryptocurrency can be stored. Well, it can be stored using a wallet. This is not the same as the wallet in your back pocket. Cryptocurrencies are being stored online or offline often called Cold wallets. In as much as you can store these cryptocurrencies in a cold wallet, you still need to bring it online before it can be spent or used for the transaction. And when spent, you are anonymous. No one knows who you are or where you belong.

Cryptocurrency can also be called a digital currency, a digital asset, crypto, or virtual currency. I think basically, it’s just a digital cold.  

This article is giving you an insight into cryptocurrencies and blockchain. A lot is involved in producing a successful crypto that will be backed with a strong community as bitcoin. In a nutshell, cryptocurrencies and blockchain are best pals just as you and me.


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