WTF is Blockchain Technology?

Blockchain

By now, almost everyone has heard of the term cryptocurrency. You may have even considered investing in it. Moreover, a common term you’ve probably heard several times in the past few months is blockchain technology.

At its most basic level, a blockchain is a type of shared database that differs from a typical database. It stores information; blockchains store data in blocks linked together via cryptography.

What Is Blockchain Technology, and What Does It Do?

The original purpose of the blockchain was to facilitate digital transactions using Bitcoin, but the potential uses of blockchain technology quickly became apparent to developers and entrepreneurs in other industries.

How Did Blockchain Technology Come About, and Who Created It?

Bitcoin

Bitcoin is the first and most well-known blockchain innovation. It was a proof-of-concept digital currency that launched in 2009. Although its price has fluctuated widely, bitcoin’s market capitalization now hovers between $10 billion and $20 billion.

Smart Contract

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller directly written into lines of code. The code and the agreements contained therein exist across a decentralized blockchain network, eliminating the need for a middleman.

Proof of stake (PoS) is an algorithm that rewards users based on how many coins they hold. For example, if a user has 100 coins, they will be able to mine or validate block transactions in proportion to their stake.

Proof of Stake

One of the challenges facing blockchain technology is scalability. Currently, the Bitcoin network can process only 4.6 transactions per second, and the Ethereum network can manage around 15. In comparison, Visa can handle 65,000 transactions per second.

Blockchain Scaling

We all know that blockchain technology is a game-changer and has helped people make money online, but what are some of today’s most popular applications? The most popular application for blockchain technology is in the financial sector.

What are Some of the Most Popular Applications for Blockchain Technology Today?

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