Blockchain 101: Beginners Guide to Understanding the Technology

AJ
AJ
Apr 11, 2018 · 6 min read

What is Blockchain?

When you hear blockchain, the term is synonymous with Bitcoin, it is often confused as the same category and because of the negative perception bitcoin can receive as “magic internet money”, blockchain is often overlooked. However, blockchain may be one of the most important evolutions in technology and even more significant than when the internet was first publicly available. Blockchain powers bitcoin and although it’s original purpose was created for Bitcoin and other cryptocurrencies, this is just one application of this powerful technology.

Discover and review best Blockchain softwares

As a starting point, think of blockchain as a public spreadsheet in the cloud that can be programmed to record and track anything of value. Once a transaction occurs, a record is created and is validated globally by computers participating in the network. Once the transaction is validated, the record is permanent and immutable. The owner of the transaction has the power to move anything of value freely and instantly without borders or intermediaries. Some examples that can apply to Blockchain is financial transactions, medical records, or even land titles.

When the internet was first available publicly, it’s primary purpose was to store and retrieve information. There are currently archaic practices in place to store and track this type of data that haven’t evolved as much as since the early days of the internet. So what exactly is special about blockchain technology when there are already current processes in place?

let’s breakdown why blockchain will revolutionize the way we interact with each other:

Blockchain isn’t a single network, it’s a type of technology that can be implemented in various ways with many different applications. When you spend more time marinating on real-world use cases that Blockchain is applicable for, you will begin to realize the technology cannot only disrupt multi-billion dollar industries, but also multi-trillion dollar industries. Blockchain as of today is disrupting the monetary system, financial markets, and democratizing venture capital via its first killer application, cryptocurrency. The common person now has the opportunity to invest into the newest technologies that were previously only available to private institutions or high net worth individuals with a much lower barrier of entry. Blockchain has forced banking to rethink its current practices as it has enabled the individual to act as its own bank and allow to move cryptocurrency freely without any intermediaries globally. The cryptomarket is worth 300 billion as of today and is projected to be worth multi-trillions. As you can see, the underlying theme of decentralization is the transferring of power from institutions to the individual. How far can Blockchain go? Tim Draper believes it will force governments to become a service and the individual can choose which government that suits best for them without needing to relocate:

“Down the road, you won’t have to physically leave a place to choose a better government. From wherever I am, I can get social security from Chile, healthcare insurance from Canada, education from Russia. The whole system will be much more virtual.” — Draper (via Cointelegraph)

This is already happening in Estonia, in which you can become a “e-resident” within 3 hours online and be able to operate your business globally while serving Estonia’s tax system. For example, You can setup a virtual office, accounting, and reporting all within Estonia’s online government platform: https://e-resident.gov.ee regardless of where you operate your business in the world.

The scope of how blockchain is going to revolutionize technology is largely undetermined as its mostly uncharted territory. We are currently at the ground floor, however, the ecosystem, energy, and community is reminescent of the early internet days. Thousands of developers are contributing to the technology out of pure passion, world class researchers and scientists are devoting a majority of their time to blockchain, and billions of venture capital is pouring into the ecosystem. Regardless of on our opinion of how effective blockchain will be, it will certainly garner a lot of attention as it grows over time.

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AJ

Written by

AJ

Building a dream with elevators in it

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

AJ

Written by

AJ

Building a dream with elevators in it

Coinmonks

Coinmonks

Coinmonks is a non-profit Crypto educational publication. Follow us on Twitter @coinmonks Our other project — https://coincodecap.com

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