Blockchain has already been explained so much that practically everyone gets the idea: Data stored in a block with a unique code / hash and transferred to the next block via a chain and so on and so forth. Near irreversible in design due to needing all the stored blocks to agree to be resubmitted until it reaches that one block that is wanted for the change to occur.
Explanations can be a bit confusing but that is somewhat of a layman’s term of figuring out Blockchain. Having a dictionary handy when exploring the Blockchain will be incredibly useful as many terms used are not exactly what the word definition means. Here is a link to a glossary. That should clear up the confusing jargon that seemed to spawn with the introduction of Blockchain.
What is the purpose of Blockchain? Apparently transparent transfer of data. Cryptocurrency was added to the concept as a means to (near instantly) transfer funds without having to go through the wire/bank transfer process and to keep as much of the original amount as possible intact by the time it reached its destination. Nowadays though it seems like the transfer process has become complicated unnecessarily.
Blockchain as a technology has many benefits but it appears each blockchain is specific to a utility. For example, the Bitcoin Blockchain and it’s associated Cryptocurrency Bitcoin has been compared to a ‘store of value’ asset and has started to be generally accepted in many locations as a viable payment option for products, services, and other things. It has a set supply limit, the rate at which people can earn it is being decreased every 4 years, and the fact it is the original Blockchain which all others are inspired or based on gives it credibility.
Other Blockchains serve a different purpose but still have a tied ‘Cryptocurrency’ to access the Blockchain. There is a Fiat’ value associated with every Cryptocurrency and the exchanges that show the price of these cryptocurrencies appear similar to a stock exchange ticker but viewing Cryptocurrency as a ‘stock’ is, in my opinion, the wrong way to look at Cryptocurrency.
Cryptocurrency is associated with a blockchain and is the ‘fee’ for a transaction. Transactions are everything in Blockchain as the Blockchain is supposed to keep record of every exchange, trade, swap, purchase, submission, and that requires the two participants to agree to the process and the cost of ‘transaction’ which is then submitted into the Blockchain. Some transactions are more ‘costly’ than others but that all depends on how the ‘transaction’ process is signed on the Blockchain. Some Blockchains require more power / energy than others and there might need to be more participants to ‘agree’ to sign a transaction than what is originally thought and those signing participants need to be paid a fee (Gas fees) for sharing some of their power in the Blockchain. It’s not always efficient and sometimes it is not even worth making the transaction as sometimes the fee to make the transaction costs more than the actual transaction originally costs.
It’s silly but those were the early growing pains of Blockchains that began shortly after Bitcoin took off.
I think the best method when looking for a Blockchain or Cryptocurrency is to see if the utility the Blockchain offers is worth the effort it takes to participate in the space. This requires a lot of personal research to understand many things that matter such as: The mission of the Blockchain, why it was created, the type of community and projects participating with the Blockchain, the conversation revolving around it, the ease of accessing the Blockchain, How transactions and smart contracts are signed, the end goal for the Blockchain, and how active the Blockchain is within itself compared to its outside connections.
This is just a base introduction to Blockchain. I am looking to go further with Cryptocurrencies, Tokens, Purpose, and utility of this subject and grow understanding of the concept of Blockchain. It’s more than a ‘quick rich’ scheme or a ‘scam’. This subject is wide and varied. Everybody has their own purpose for participating.
The one thing often heard when looking up any Blockchain information, cryptocurrency news, and any decentralized project is to advise EVERYONE to double check the information shared and to ensure it is correct and proper. Blockchain has a reputation for being a scam artists haven and it requires a lot of personal knowledge and research to correctly traverse.
Be safe and stay Knowledgeable!
Updates to come!