Blockchain Technology

What is Blockchain?

When it comes to money, people have to trust a third party (like a bank) to be able to complete a transaction. Blockchain elimniates the need for third party trust organizations by offering an open decentralised database. In this database no one can cheat the system becuase everyone else is watching. Blockchains store information across a network of personal computers, making them distrubuted. This means no central company of person owns the system, rather a group of people contribute to it. This makes it especially difficult for someone to take down the network or corrupt it.

How does it work?

The people who are involved in the system use their computer to hold records submitted by others, (reffered to as "blocks"), in a chronological chain. The blockchain uses a form pf math called crytography to ensure records can't be counterfeited or altered by anyone else. In the future, blockchains that manage and verify online data could allow use to launch companues that are entirely run by algorithms, inproving the safety of self driving cars, transactions through the internet, and will also help use protect our online identity from being stolen.

Bitcoin: The first inplementation of Blockchain

Bitcoin is the first app devolped using Blockchain. It's a form of digital cash that you can send to anyone, anywhere. Bitcoin is different from credit card, PayPal, Venmo, and other ways to send money since there isn't a bank or finicial middle man involved. Instead, there is a network of people from all around the world who help move the money by validating others' transactions. The blockchain is used to track records of ownership over the digital currency, so only one person can be the owner at a time and the cash can't be spent twice, like counterfeit money in the physical world can.