What is Cryptocurrency and Blockchain System? - Cryptocurrency For Beginners
In this pandemic period, cryptocurrency is one which gained popularity overtime and people started to get aware of the cryptocurrency. You can see the hype of Dogecoin, sky rocketing figures of Dogecoin, Bitcoin after Elon Musk tweets.
This cryptocurrencies work on Blockchain system and de-centralization.. Lets understand How this blockchain and de-centralization work?
Centralization refers to a authority that controls the inflow and outflow of a system for eg: Bank is a centralized authority. If you do any payment to a person bank is centralized authority, it validates the transaction and processes the transaction to the another person and other person receives the payment. Bank is centralized authority and mediator in your transaction.
In cryptocurrency, it you do transaction to other person and no authority controls it and it is based on block chain system.
what is block chain system?
Block chain is a system in which blocks are attached in the chain and transactions can be noted in such way , transaction more of the blocks For eg : If you forward some money to your friend then your transaction notes the following details :
1. The unique number generated for that transaction and specific amount
2. The person you are sending the money to
3. Block transaction number of previous transaction that happened in that block chain.
then for next transaction in that block chain your unique transaction number would carry to the next transaction and so on. This gives the name to the system as blocks attached by unique IDs chains and forwarded .
There are miners sitting across the world validate your transaction from the computers all around the world. If someone tries to change the amount in the transaction your unique number changes the unique number gets forwarded to next transaction that would also leading to invalidation of the block chain. And it's easy to locate where did the block chain break actually.
Who are miners ? what do they do?
Miners are the peoples sitting the world on their Computers and they are your validating the blockchain. If block chain is changed in the middle. The miners report a problem in the blockchain and that invalidates the transaction and blockchain discontinued there and his attempt to break the block chain fails.
what do miners get in return? miners get a percentage of your bitcoin/block chain money in return for maintenance of the block chain. If they fail to report the invalidation, then they get penalty for that offence.
The Entire model of cryptocurrency is based on Block chains.
Block chain can be implemented . Futuristic approach for decentralization of the authority. Block chain can also be implemented for storing of the medical records or for voting of the Government.
Will storing of medical records lead to privacy issues ?
No, you will be provided with a secret key that will enable to open the block and access the information . The miner only sees the transaction number on it and will validate it .
In my opinion cryptocurrency will take over the money as it is international currency and no need of any additional fee for international transaction. In future Restaurants, market and other place will accept payments in cryptocurrency.
So what are your views on cryptocurrencies and block chain system ??
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