A Guide To The Blockchain Tech
A lot has been said about Bitcoin. A lot has been said about Bitcoin. This blockchain-based cryptocurrency is the first but, as you’ll see from Bitcoinfy’s infographic below, not the only one of its kind. It has changed the way we do ordinary and business transactions. Although many investors virtually made a fortune when Bitcoin reached its peak by the end of 2017, its volatile price has been the main reason why new investors shy away from the currency. However, most of them would still agree that it is the best cryptocurrency at the moment, despite thousands of other crypto alternatives.
What are Bitcoin and Blockchain?
Bitcoin was launched in 2009 by an unidentified person under the alias of Satoshi Nakamoto. The platform which Bitcoin and similar cryptocurrencies utilize is known as blockchain. This is a P2P-based digital, decentralized, and distributed ledger that stores data in blocks. The entire system is arranged in such a way that hacking or deleting these blocks is extremely difficult, if not impossible. Only authorized parties are able to make legitimate changes to the system.
Concepts Related to Cryptocurrencies
The invention of Bitcoin brought us a lot of new concepts. One of them is the so-called Bitcoin mining. You might have heard about mining cryptocurrencies. Simply put, mining is a process on the blockchain network by which network nodes verify transactions. After the verification, transactions are added to a new block of data. As a reward for their computing power, miners (owners of the nodes) are given a specific amount of the mined cryptocurrency (for example, 12.5 bitcoins).
Crypto wallet is another popular term in the cryptocurrency world. As the name suggests, it is a digital wallet used to store cryptocurrencies. It is not possible to own a digital currency without owning one of the countless wallets out there. They are quite easy to open and handle. Many have only the basic functions, such as “send” and “receive” funds, so you need to have basic computer and smartphone skills to operate them. However, you should always go for the one that offers a high level of security. Note that if you ever lose access to your account, it is not possible to retrieve it and your coins are gone forever.
Perhaps you are aware of another popular cryptocurrency item – initial coin offerings (ICOs). Before a crypto startup launches its product and crypto coin, they might run an ICO to collect funds for further development. It goes like this. You believe that startup X has a promising future. You can buy its tokens on presale during its ICO for Bitcoin or Ether (another popular cryptocurrency). If everything goes according to the startup’s business plan, the tokens you purchased will significantly increase in value (sometimes more than 1,000%) in the future, and then you can sell them, getting yourself a nice return on investment.
What Is Next for Bitcoin?
Bitcoin has made a name for itself over the years, but there seems to be a general declining of its value. However, this trend might be only temporary, and we could see it reaching a new all-time high level pretty soon. Unfortunately, it is not possible to predict future developments. All we can say at this moment is that Bitcoin and blockchain adoptions are growing at an unprecedented rate. This is good news, and we should hope for the best.