Whenever you get into a conversation regarding cryptocurrency, the concept of Blockchain always pops up. As one of the primary backbone technical systems behind cryptocurrency, Blockchain is something you can talk about with fellow cryptocurrency enthusiasts for hours and hours. However, some people avoid such discussions for they feel that Blockchain and Bitcoin sound too technical. Other individuals might even think that the terms are intimidating and challenging to grasp. While these two terms can be quite complex, it is not impossible to learn about them. Plus, you are in the right place to learn about Blockchain basics.
Blockchain is a transaction system that involves peer-to-peer management and applications. The system allows users to conduct and handle numerous transactions with freedom from any ruling body or authority. It is a type of DLT or distributed ledger technology that many individuals manage.
A typical Blockchain has numerous properties:
End users can remain anonymous as they use the technology. Some people can also use pseudonyms. The system does not track any private information whatsoever.
More and more individuals are turning to Blockchain, thanks to the improved and efficient security it offers. Any transaction undergoes encryption, making it secure and legitimate.
Each user has an updated copy of the ledger. That means complete information and transaction transparency for each person holding a copy.
Once a Blockchain transaction happens, it remains permanent. There is no way to reverse the transaction or do any kind of alteration or edit it.
Almost every industry that exists utilizes Blockchain nowadays. Here are some of them:
- Video game industries
- Supply chains
- Advertising and marketing
- Insurance and liabilities
- Financial services
- Sports enterprises
- And so much more
The Pros And Cons Of Blockchain
Like most things, Blockchain is not perfect. It comes with a fair share of advantages and disadvantages. Check them out:
- There is no ruling body or authority that monitors Blockchain transactions. Users can conduct their activities with no one bothering them.
- The same concept goes for governments. Not one oversees how Blockchain systems operate. Doing so is too costly and troublesome.
- Blockchain systems are fully automated. Human intervention or interaction is minimal. This concept means there would be fewer risks for any errors.
- Blockchain transactions do not have that many security issues. Computers and programs run the show for this technology.
- Since there is no ruling authority monitoring Blockchain, criminals and entities use it to their advantage.
- The currencies in Blockchain do not have a set or fixed price. The value can either drop or rise, depending on some factors.
- Blockchain systems also have a negative impact on the environment. To run the technology requires high-end computers. These types of computers require more resources to power up and operate.
The Blockchain Variations
Currently, there are four types or variations of Blockchain:
1. Public Blockchain
This kind of Blockchain is decentralized and open for public usage. Users will have access to networked computers if they wish to analyze and validate a transaction. Anyone who validates this goings-on will receive compensation at a later date.
2. Private Blockchain
As the name suggests, private Blockchain requires permission from a governing entity or authority. Unlike their public counterparts, these variants are centralized. That means only one person or entity has control over it. That means they get to decide who can access the Blockchain. The same goes for other services, such as analysis, transactions, and so much more.
3. Hybrid Blockchain
A hybrid Blockchain or consortium is a combination of private and public Blockchain systems. It can have one or more system administrators. In addition, this variation has several perks and other benefits for users.
A sidechain acts as a secondary chain parallel to the primary one. Through this chain, users can transfer or relocate their digital assets from one Blockchain to another. In addition, a sidechain will improve a system’s overall efficiency, speed, and so on.
Working On Blockchain
Would it be possible to work on a Blockchain technology or system from your end? The answer is a solid yes. You have the option to operate and manage a Blockchain. However, it is paramount that you have the skills and resources to do so. Not only that, but Blockchain mandates the utilization of a high-powered computer. Random desktop computers and midrange laptops will not suffice. Do you ever see memes online about computers and laptops burning due to overclocking and usage?
If you do not take the necessary steps, your setup will end up like that. But luckily, you can access online sites and blogs to find out if your computer is up to the task. You can also spend some cash to upgrade your setup for your Blockchain needs. We will mention right now that the endeavor might be a bit costly. But if you have no issues with that, then go ahead!
Moving on, not every one of us has the time and money to learn and work on Blockchain technology. Most of us spend time working and running businesses. Figuring out how to operate Blockchain might be the last thing on a person’s mind. That is why several Blockchain service providers exist. These valuable companies will take care of all the Blockchain aspects for your business. In addition, they offer other kinds of services, such as:
- MVP development
- Smart contracts
- Software development and consultation
- Upgrades to system applications
- Blockchain prototyping
- Blockchain consultation and immersion
It is not that challenging to locate such a company that deals with these kinds of services. It is a neat thing that the internet has tons, including companies like “Rapid Innovation” for anyone to pick from any time. Organizations and companies will vary in terms of operations and payments. So it is a must that you have to do some research before you talk about work.