The early internet dealt with intangibles as one sent or received emails, corresponded on forums, read as well as distributed articles. Now the modern internet does deal with assets. These assets are in fact stored in encoded form on a network-to-network chain referred to as the blockchain or ledger, where each participant does see with whom one is doing business. This protects one’s business dealings and also prevents theft. It also simplifies one’s affairs and quickens the process, reduces the errors, and also saves one from hiring a third party.
This rather decentralized blockchain system is indeed going to bring about much changes in one’s life from the way one transacted in one’s business or for that matter manage assets. Also, it does involve that way one uses machines, vote, rent a car, and also even proves who you actually are. It will also impact the transformation of banks and other financial institutions, hospitals, companies, and governments among others.
Decentralized cryptocurrencies are an important aspect of the blockchain. Cryptocurrencies, or rather digital coins, are coins that are passed through a given electronic network. One can make transactions by check, wiring, or even cash.
The early internet dealt with intangibles as one sent or received emails, corresponded on various forums, read and distributed articles. The present modern internet involves assets. These assets are in fact stored in encoded form on a network-to-network chain and then called the blockchain or ledger, where each of the participants does see who one does business with. This not only protects one’s business dealings but also prevents theft.
In fact, this decentralized blockchain system is going to change one’s life from the way one transacts business or even manages assets, to the way one uses one’s machines, vote, rent a car, and also even prove who one is. Along the way, it will transform banks and other financial institutions, hospitals, companies, and governments among several others.
The more valuable the transaction, the more one wants to protect it. Traditional systems do hire a mediator, like a banker or a remittance company to ensure the trust. Records are permanent, comprehensive as well as public – which is why the users prefer the blockchain for questionable or risky transactions.
How does it work?
Each transaction is indeed a digital ‘block’ that does need to be verified prior to being allowed to enter the system.
- Is the money there?
- Are sender and receiver reputable?
- Is the request legitimate? And so forth.