I’m sure you’ve come across the buzzword “blockchain” quite often. Actually, I stumbled upon this whole concept after the Bitcoin craze a few years back. Blockchain sounds like something only tech geniuses should understand, and no matter what material I consumed to learn more about it, I just got more confused.
Alien words after alien words, I was ready to throw in the towel. But something about the world of blockchain and Web3 captivated me. And that’s precisely what kept me going.
Why should we care about blockchain tech?
Firstly, FOMO. Simple as that.
Okay, that’s just me. But surely, a lot of us have experienced parents or older relatives who have asked us how to post a selfie on social media, and we had to talk to them like they’re five? Or we had to repeat the steps to them over and over, and they just didn’t get it? You see, that’s because they didn’t have the foundational understanding of the tech.
How about the thing they say about how AI is not here to take over your job, but they’re here to take over the jobs of people who do not know how to operate AI. The world is so fast-paced, and education is the only way to not be left behind.
Anyway, beyond FOMO… there are many reasons why we should care about blockchain technology and the third version of the web (a.k.a. Web3). We’ll delve into that at another time. But for now, let’s simply say that blockchain technology holds the promise of a better future.
Let’s get this out of the way: Blockchain is not Bitcoin
Many of us think that blockchain literally means Bitcoin. That’s the same as saying the Internet means email. That’s exactly what most people thought back in the early 90s! Little did they know that the Internet would change humanity forever.
Look at how many things were made possible by the Internet. Now we have instant messaging, endless resources for learning or entertainment… heck even food delivered to your doorstep wouldn’t be so instant if it weren’t for the Internet.
Web3 is built on top of blockchain technology, and the potential for things many of us haven’t imagined is just waiting to be uncovered. Okay, I am getting too giddy now. Back to the topic!
What is a Blockchain?
At its core, a blockchain is a decentralized and distributed digital ledger that records transactions across a vast network of computers. Hohoho, this sentence alone made my nose bleed the first time I saw it.
Okay, imagine you have a traditional ledger, like a book, where you write down all the transactions that take place.
It is a record-keeping tool used to track and document financial transactions or other types of information. It also serves as a reliable and organized history of all the activities and events that have occurred over time. Now, imagine a blockchain as a digital version of that ledger. Instead of the ledger being in one place somewhere on the world wide web, there are multiple copies of the same ledger spread all over the world. You follow? Great!
In traditional centralized databases, all the data is controlled by a single entity. For example, your bank. Your bank holds all information about you and all your transaction records. They do the same for all their other customers. This is not very secure, really. I mean, a lot of us are okay with it until bad things happen. Like, getting hacked or something and losing our hard-earned cash.
Blockchains are inherently secure.
First, it’s decentralized, meaning no central authority controls the whole thing. Instead, it exists on a network of computers spread out worldwide. Each computer on this network is called a node. They all work together to maintain and update the blockchain.
Blockchains are distributed, meaning every node on the network has a copy of the entire ledger. There’s no single master copy. Instead, everyone participating has their version, synchronizing and agreeing on the same information.
Here’s the fascinating part: Once a block of transactions is added to the blockchain, it becomes almost impossible to change. So, tampering with the blockchain is extremely difficult and unlikely to go unnoticed. You could go down this rabbit hole by clicking here if you like. Most folks though are satisfied just knowing it is the way it is.
Because of this, blockchains are incredibly secure and trusted systems for recording important information. And since everyone on the network has access to the same information and can verify it independently, it fosters transparency and trust among all participants.
This technology has far-reaching implications and has been widely used to create cryptocurrencies like Bitcoin and to revolutionize various industries such as finance, supply chain management, voting systems, and more. It’s an exciting and innovative way to manage and secure data in our digital world.
In summary, a blockchain is:
- A digital ledger that records transactions across many computers in a network.
- Decentralized, so no single authority controls it.
- Distributed, meaning, every computer in the network has a copy of the ledger.
More on blockchain and Web3:
How does a Blockchain Work?
What is Decentralization?
What is Tokenization?
What is Web3?
