blockchain technology has the potential
to be one of the most hyped inventions
of the 21st century
blockchains which were created to
support bitcoin now power dozens of
other cryptocurrencies and developers
are seeking to integrate the technology
into sectors such as health art and
banking
understanding how blockchain works why
it has value and what distinguishes it
from other internet technologies would
help you grasp the rising interest
disclaimer i'm not a financial advisor
the video is for informational and
educational purposes only
hey everyone welcome to crypto trends in
today's video we'll talk about
blockchain so make sure to subscribe to
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of our videos so without further ado
let's get into it
what is blockchain
a blockchain is a digital record of
transactions that is maintained by a
network of computers in a secure manner
that is impossible to hack or modify
the technology enables individuals to
transact directly with one another
without the use of an intermediary such
as government bank or other third party
cryptography is used to connect the
expanding list of records known as
blocks
each transaction is validated
independently by peer-to-peer computer
networks time stamped and contributed to
a growing data chain the data cannot be
changed once it has been recorded
while popularized by the increasing
usage of bitcoin ethereum and other
cryptocurrencies blockchain technology
has promising uses in legal contracts
property sales medical records and any
other business that requires the
authorization and recording of a
sequence of activities or transactions
how blockchain works here's how
blockchain also known as distributed
ledger technology works using the
bitcoin system as an example
bitcoin transactions are entered and
broadcast to a network of powerful
computers known as nodes this global
network of thousands of nodes competes
to confirm the transaction using
computer algorithms
this is referred to as bitcoin mining
the miner who is the first to
successfully complete a new block
receives bitcoin in exchange for their
efforts
these benefits are paid in the form of
newly minted bitcoin as well as network
fees which are passed on to the buyer
and seller
fees might vary based on the amount of
transactions
the sale is added to a block on the
distributed ledger once it has been
cryptographically validated the
transaction must next be confirmed by
the majority of the network
using a cryptographic fingerprint known
as a hash the block is permanently
connected to all previous blocks of
bitcoin transactions and the sale is
completed
blockchain technology first appeared in
academic publications in 1982 in a
dissertation on the architecture of a
distributed computer system that may be
built maintained and trusted by mutually
suspicious organizations however it was
a 2008 article titled bitcoin a
peer-to-peer electronic cash system by
the pseudonymous satoshi nakamoto that
moved an academic idea into real-world
practice blockchain technology pros and
cons
using bitcoin as an example below are
some of the pros and cons of blockchain
technology when used with
cryptocurrencies
pros
decentralization transparency combined
with anonymity accuracy and security
blockchain applications both public and
private
possibilities for the unbanked
cons crypto is popular with criminals
cryptocurrencies based on blockchain
technology are extremely volatile
the use of cryptocurrency is still in
its infancy it requires energy to mine
bitcoins the bitcoin blockchain is quite
sluggish
the future of blockchain technology
while the bitcoin system is the most
well-known implementation of blockchain
technology many other cryptocurrencies
are based on this new technology and you
must note that blockchain technology has
already been adopted by several big
corporations
while it remains to be seen if bitcoin
will succeed in supplanting other types
of traditional payment systems
blockchain technology applications are
expanding rapidly and enthusiasts
believe they will result in profound
changes across sectors
what are your thoughts about blockchain
technology is it capable of disrupting
established banking institutions let us
know in the comment section down below
with that being said here we come to the
end of our video i hope you like this
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till then take care thanks for watching
you