Blockchain: The Technology Behind Cryptocurrency
Since the inception of cryptocurrency, it has become a dominant investment choice, especially among the younger generation. The crypto revolution started with the desire to do away with third-party financial institutions; the innovation that made this possible was blockchain technology cryptocurrency.
What Is Blockchain Technology?
Blockchain is a digital ledger/database of transactions that cannot be changed once registered. As a transaction occurs, its data is copied to every computer on the blockchain network.
What does this achieve?
Consider that your teacher marked your copy, but you somehow change the F to an A on your sheet. However, the teacher has already got a record of it in her notebook and her computer. So, even if you change the grade on your copy, the system still knows the actual score. You can try mischievously accessing her workstation and notebook as well. But the teacher might get so paranoid that she is now registering all the scores on everyone’s copy. So, now she has hundreds of copies of your grades. That is her using blockchain on paper.
Similarly, even if a hacker gains access to one computer on the network, the record on other participating computers remains the same, making the blockchain ledger immutable and secure.
How Does It Work?
When a new transaction occurs, it is sent to a P2P (peer-to-peer) network of computers. The computers then solve a computational puzzle to verify the authenticity of the concerned transaction and register the transaction in a block which is then added to the front of the blocks of the previous transactions. It creates a sort of chain of blocks of transactions, hence the name Blockchain. This chain cannot be changed by anyone as the ledger is copied to every computer on the network. If a computer has an inconsistent record of transactions, the blockchain network rectifies it by syncing it with others.
Advantages of the Blockchain Technology
Blockchain is a revolutionary advancement offering a lot of advantages to its users. Some of the key benefits are:
- Distributed and Transparent
Bitcoin and Blockchain
Blockchain was first conceptualized in 1991 to create time-stamped records that cannot be tampered with. In 2009, Bitcoin founder Satoshi Nakamoto used the idea in a real-world blockchain cryptocurrency for the first time. Bitcoin began the use of blockchain to maintain a transparent yet secure record of transactions. After that, several cryptocurrencies inspired by bitcoin, such as Ethereum, Litecoin, and Ripple, emerged with their own nuances to the implementation. What remained foundational to date, however, was the blockchain.
Blockchain Technology Applications in Real Life
Blockchain finds widespread applications given the creativity enthusiasts have introduced to create digital solutions. A few of such applications are:
- Fair Elections
- Smart Contracts
- NFT Marketplaces
- Secure transfer of critical data
- Intellectual Rights on Original Content
How Zebpay helps its users benefit from the technology
Zebpay is one of the leading crypto exchanges in the world. One can use Zebpay to buy cryptocurrencies, trade-in them, or pay someone using crypto money. As a facilitator of crypto trading, Zebpay enables its users to make money by investing in a potentially high return crypto asset. The vision is to achieve financial inclusion by serving the underbanked, underserved and undervalued.