June 16, 2022

Understanding Cryptocurrency: The Absolute Basics of Blockchain and What it Means for You

What on earth is Blockchain? For many of us that don’t specialize in tech, cryptocurrency seems like a very elusive and complicated concept, even still. If you are looking to learn the basics, you are in the right place. In an increasingly digital world, find out how even you can benefit from Blockchain.

What is Blockchain

Blockchain is a database that is available to any and all. It is public, transparent, and all records are available to anyone that has a bitcoin address, transaction hash, or block number available. Each block, or token per se, is owned by an individual and managed by 1000s of computers. This decentralizes the data, so that you are able to make transaction person to person, as opposed to going through a bank or corporation to handle your assets.

How Does it Work?

A Blockchain is quite literally that, a chain of transactions where each transaction is a block. These blocks can work as time stamps containing data, currency, contracts, and other information (these are all various tokens). Each time a new transaction is made, a new block is added onto the end of the chain. Because the data keeps adding on to the chain, the chain information cannot be disrupted or tampered with.

The Downside of Blockchain Based Systems and Cryptocurrency

For businesses that make their money from third-party fees, the jig will be up. There are a variety of professions and companies (banks, rideshare apps, music streaming platforms, etc.) that primarily profit off the advantage of being the middle man and charging fees to get clients and customers the service they are asking for. With the rise in popularity of Blockchain, these positions are becoming increasingly obsolete meaning that the participants will have to pave a new way to gain income.

How We Benefit from Security Tokens

Blockchain based systems give power back to the people. If you are someone who wants permission on how and when to use your money, Blockchain may not be your style. However, for those who feel empowered to be directly in control of their money, personal data, and other assets you should be all ears. Blockchain technologies puts us in direct control of our dearest information and assets and allow us to transfer that information directly to the person purchasing or obtaining it, no middle man in sight!

How to Use These Tokens

Blockchain is very closely linked with cryptocurrency, but this technology can be used as much more than currency. Think of it as any token imaginable, data, money, contracts, technical property as stated earlier. At its core, the block is information which can take infinite forms. We know at this stage this may still seem a bit aloof, so let us give you some real life uses that can pertain to you:
  1. Smart Contracts

    The data in Blockchain can be used to timestamp and verify data, such as contracts between multiple people. Because these records are public, the specifics of such documents are available and up to date for anyone who may need or want access to such information.
  2. Cloud Storage

    Just like how you have all 2873 of your pictures available anywhere at any time in the elusive “Cloud” this can be done with other information as well. If you run a healthcare network, you can store all network users’ sensitive information securely in the Cloud where it is always accessible. If your utility management company wants a more available and updated way to keep track of customers and payment information, there is a Blockchain technology that can be made readily available.
  3. Supply Management Chain

    There are many instances when it is important and often necessary to have noted when, where, or through who something occurred. With Blockchain you have a constantly updated and accurate record of the transactions made to a certain token. And again, because the blocks keep adding and the chain is managed by so many secure computers, you can depend on the fact that no receipts have been forged or tampered with.
  4. Payment

    Ah yes, perhaps what Blockchain is best known for: payment. Paying for goods and services. Transferring funds to someone directly. Blockchain technology can be used as a form of extremely secure, never inflating* payment. (*This is never inflating because the currency is never copied or duplicated, simply transferred from one person/place to another.)

Blockchain technologies can seem very scary and intimidating. As a member of the Codistry team that is newer to the concept, I found myself super overwhelmed trying to understand it fully. What kind of partner would we be if we didn’t pass along the knowledge? Hopefully at this point you now understand what Blockchain is, the pros, the cons, the uses, and how much you can benefit from the service. This is your future we are talking about!! Contact our team to get started on the development of your Blockchain based technology.

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