NOBODY CAN EXPLAIN BLOCKCHAIN AND CRYPTOCURRENCY BETTER!
It’s sad to see that many people get a bit frustrated, resentful, and don’t care, about the concept of Bitcoin and cryptocurrency in general when in reality it’s easy and relatable to when you give your little niece Amanda that came visiting you, the only apple you’ve got. What just happened? Amanda has got your only apple now while you’ve got non.
Remember you didn’t have to call your neighbors to come to attest that you gave the apple to Amanda, Amanda saw it happen, you were there, and the child was there. Amanda has it physically in her hand, it’s entirely hers, you can’t give her another apple either, because you’re out of apples. She can choose to do whatever she wants with it, like give it to Mirabel the child next door, who can also give it to her baby brother jack, it’s totally up to her.
But then Imagine for a moment that this apple was digital, how will little Amanda ever know if the digital apple you gave her belongs to her and her alone? Cos there’s every possiblity that you may have duplicated the apple on my computer and might as well gotten so many downloads or perhaps little Amanda comes up few minutes later to deny ever receiving an apple from you.
So what do you do at this moment, you simply write it down in a notebook, like how you’d do when you plan on going groceries shopping, so you record it down whilst Amanda is there that you gave your apple at the specified time to little Amanda which she’ll agree to cos you did . So because it is digital now, the notebook is called a ledger which is to stay in your personal computer and likewise Amanda’s.
but does this still solve the problem mentioned earlier? this is how it does that…
1) You both will make a couple of those ledgers for the apple transfer, choose a few trustworthy people from the neighborhood and give them a ledger each.
So now , not only is the records of the apple transfer to Amanda repeated in all the ledgers, even if one ledger is destroyed, possibilities are that all the records concerning that apple transfer are nonetheless present in the combination of other ledgers.
This is called a decentralized ledger
2) Now no single person owns the ledger or could make changes to it. Even when a person amongst the trustworthy people ( Amanda’s dad) decides to make an alteration to his own copy, all the other people will notice that the record is no longer correct and that Amanda’s dad is making an attempt to make fraudulent adjustments to the record all of them had earlier on, they’ll quickly deny that record and not write it in their ledgers, in addition they can determine to banish Amanda’s dad from further participating in the group . That is how Consensus is formed and voting is done to determine the validity of a transaction in Blockchain.
3) Additionally these trustworthy persons can also decide never to delete that records of the apple transfer from their ledgers. That is immutability!
Then also you can’t also cheat it by giving Amanda digital apple you don’t have, because the ledgers keep track of your digital apple.
See understanding Bitcoin and cryptocurrency is not difficult you know.
WHAT IS BLOCKCHAIN
Reading through the above illustration would set you on the clear part to understanding what blockchain is.
Blockchain is a ledger(a list containing transactions as in Amanda’s notebook above) which is updated in blocks (pages of the notebook) and as a block is filled it is chained with one another(ie if one page is filled it is chained to another page), hence the name blockchain.
Blockchain was made popular with its adoption in the crypto space as a means to have a secure and decentralized record of transactions. This is because it’s digitalize and no central authority like government has power over it.
WHAT IS CRYPTOCURRENCY
The word cryptocurrency is coined with two words , crypto and currency.
Crypto is gotten from the word cryptography which means the practice and study of techniques for secure communication. Cryptography is used in cryptocurrency to secure transactions, to control the creation of additional units, and to verify the transfer of assets.
The currency in cryptocurrency means a medium of exchange generally accepted by a group of people which can be used in exchange and acquisition of goods and services eg dollar, naira etc.
We can bring the both together and say that
A cryptocurrency is a digital asset and a secure medium of exchange which makes use of the blockchain technology to decentralize and manage it’s transactions.
Example of crypto currencies Bitcoin, ripple, Usdt, ethereum etc.
IS CRYPTO A SCAM? IS CRYPTO LEGIT?
Just as you can use a knife and cut an apple and it gives you nourishment and on another hand you can use it to cut yourself or another person and it gives you pain.
This analogy can be applied in the crypto space to show you that it can be legit to you and also be a scam to you depending on the usage. I have seen a person that made $40,000 with less than $2000 in 7hours and I have seen someone that has lost millions in hours too.
My advise is don’t dwell on whether the crypto market is a scam or not because the technology is here to stay but start looking for basic education to understand what it is and how it works. Thanks. EVERTHING SAID HERE IS NOT A FINANCIAL ADVICE BUT JUST FOR EDUCATIONAL PURPOSES.
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