Cryptocurrency 101 — Thinking of jumping in?
It has been hard to avoid hyperbolic news articles about the digital currency bitcoin and the enigmatic blockchain. These words conjure various emotions for many people — for some they are secretive technologies which are purposefully obscure and impenetrable. Many associate bitcoin with greed and hypercapitalism. It has just had a mega dip, fuelled by fear and uncertainty, yet it looks like a rebound is on the cards. Could it be the time to buy?
What is the blockchain?
Simple explanation: Invented in 2008. a block is a record of new transactions (which could mean money, but can also mean voting records, medical data and many more uses). Blockchain is decentralized, meaning that it does not rely on a single computer/server/organisation. Information on the blockchain is encrypted, and to process any transaction a complex math problems need to be solved using processing power. These problems become more difficult over time, this is “mining”. Once each block is completed it gets added to the chain, creating a chain of blocks — a blockchain, which is permanent and unalterable.
