If you wanted to delve into this enigmatic thing called blockchain, you will be forgiven to recoil in fear because of the utter obscurity of the technological jargon that is sometimes used to frame it. So, let’s discuss what blockchain actually is before we get into what a cryptocurrency is and how blockchain technology could change the world.If you are looking for more tips, click for more info.
In the simplest words, a blockchain is a digital transaction ledger, not unlike the ledgers we used to record transactions and purchases for hundreds of years. In fact, the role of this digital ledger is almost identical to a traditional ledger, in that it records debts and credits between individuals. That’s behind blockchain’s central concept; the difference is who owns the ledger and who verifies the transactions.
For conventional transactions, any kind of intermediary requires payment from one person to another to facilitate the transaction. Let ‘s say Rob wants to pay Melanie £ 20. He can either send her cash in the form of a £ 20 note or he can use some kind of banking app to directly transfer the money to her bank account. In both situations, a bank is the agent checking the transaction: Rob ‘s funds are checked when it takes the money out of a cash machine, or when it allows the digital transfer, they are confirmed by the app. The bank determines whether to go ahead with the transaction. The bank still maintains track of all Rob’s transactions, and is solely responsible for reviewing them anytime Rob pays someone or receives money into his account. In other words, the bank is keeping and managing the ledger and everything flows through the bank.
That’s a lot of responsibility, so it’s crucial that Rob thinks he can trust his bank with them otherwise he won’t risk their money. He needs to feel secure that he won’t be defrauded by the bank, won’t lose his income, won’t be robbed and won’t go away overnight.