By now, most of you must have known of or heard of “Cryptocurrency”; also, having a bit knowledge of what that is, right? You can take a look at one of our posts here , “Cryptocurrency – The Future Of The Global Financial System?“. Everyone is talking about that and everyone is referring to the “Blockchain Technology” and even going so far saying that it’s the WEB 3.0, the future of the Internet, the next generation network …etc. But … what is Blockchain Technology exactly?
Sure, you can google around and find lots of complicated explanations. There is one that you should read if you are interested in this topic – “What is Blockchain Technology? A Step-by-Step Guide For Beginners”. Even if the title of it claimed to be for beginners, you will find it’s not that easy to get into it. So … today we’d like to explain that in a very very very plain English to let you have the fundamental idea of what the Blockchain technology is and what you should know about it.
A Plain English Of “Blockchain Technology”
Just think of a group of 10 people who all have a piece of paper having a shopping list items on those piece of paper (let’s call those piece of paper “shopping sheets”). Whenever one of these 10 people buys an item, that item (as well as how much of the item, which person purchased that item, and the time of the purchase … etc.) will be written onto all of those shopping sheets owned by those 10 people on exactly same space on the sheet (those sheets are identical by the way). Therefore, no matter how many items are being bought by which person, the records of those purchases will appear on every single one of those 10 sheets on exact same space of the sheet once those purchases are being made.
Yes, that’s it. We just finished the blockchain technology explanation. The key point here is that there is no one centralized party control the record of the purchases. There are multiple (in this case but the blockchain technology on the Cryptocurrencies is built upon millions of millions of computer nodes) access points that you can check for the accuracy of the purchases. The history of the purchases and everything about it. It’s impossible to alter the records. Just think about that in a plain English still … if you wanna alter (or you can say cheat) an item purchase record from $25 USD to $250 USD, you will need to convince the other 9 people in this group to alter the record for you. See the point here? If you scale this to the Cryptocurrency that uses millions of millions of decentralized network to keep their data intact and secured, you will be able to imagine how secured that is and how difficult to hack it if it’s even possible.
What You Should Go From Here?
It’s true that the Cryptocurrency is still in its infant stage. Everyone is still watching although more and more organizations/companies/institutions already into this. This market is highly volatile BUT you should definitely pay close attention to it. It’s undoubtedly the future payment for everything. Think about how you use credit cards to make purchases or using PayPal to buy items online nowadays. The Cryptocurrency is going to be in that zone sooner than later. Because of that, all of us should be better equipped with the basic knowledge of “What’s the Cryptocurrency is?” and the technology behind it.
Note: It's a short write since we wanna give you a brief and clear picture of "what blockchain technology is?" as we mentioned in the very beginning. If you wanna know more, you can really benefit from reading the - What is Blockchain Technology? A Step-by-Step Guide For Beginners.