Blockchain technology is among the emerging technological developments scheduled to take the lead in the next industrial revolution. Even if the technology was built over ten years ago, understanding how it works is still difficult for people who aren’t tech gurus. If you want to follow the technological train, you need to have some knowledge of blockchain technology and its applications in the real world.
Blockchain Technology The Internet Of Value
A blockchain is defined as a distributed database that uses several storage devices across networks without relying on a common processor. It was created in 2008 by an anonymous tech guru who is only known as Satoshi Nakamoto. The fact that it doesn’t use a common processor makes it decentralized. So, no single institution has total control over the network, making it immutable. Those with rights to a blockchain can only edit the parts of the blockchain they have access to and not the entire system.
The application of technology is more or less limitless. For example, blockchain technology can change the way the internet works by giving power over data back to the end-users. With the unlimited supply of information online and with tech giants manipulating this information in a bid to make a profit without the consent of the users, a shift to decentralized technology is more important than ever.
To edit a blockchain, a user must have access to a private key. This private key, that is based on cryptography, ensures that everyone within the blockchains community agrees with the proposed edits. Without community consensus, no changes can be made on the blockchain. The only way a single institution can enforce changes on the blockchain without the entire community agreeing is when that institution has more than 51% of the total processing power on the network. It is commonly called a 51% network consolidation account.
Bitcoin – The First Financial Application Of Blockchain Technology
After creating blockchain technology in 2008, Nakamoto started working on the first application of the technology. This was achieved with the creation of Bitcoin in 2009. Among other things, Bitcoin is a digital currency that is created on a blockchain. All Bitcoin transactions are stored on a distributed network. It can serve as a store of value and as a means of exchange. It is important to note that the common double-spend error which hindered the progress of digital currencies was solved by Bitcoin. Since there is no single authority controlling the network, it’s impossible to duplicate Bitcoin and spend it twice.
Bitcoin solved the double-spend error with a peer-to-peer network and a timestamp server that allows autonomous decentralization. Since after the creation of Bitcoin, it has been sold on exchanges like fiat money. A lot of people have become billionaires because of their investment in Bitcoin. In the beginning, it wasn’t worth much. Shortly after, the cryptocurrency started to increase in value. Toward the end of 2017 and the beginning of 2018, Bitcoin experienced a significant rise in price almost reaching $20,000. All the other cryptocurrencies that were created after Bitcoin increased with it during the best crypto bull run in the history of the blockchain.
Join the Bitcoin Train: How To Buy And Trade Bitcoin
Even if the creation and circulation of cryptocurrencies isn’t the only application of blockchain technology, it is the most popular one so far. If you want to invest in cryptocurrencies, you’ll be happy to know that it is not too late. Many key analysts in the cryptocurrency industry have projected that the 2017/2018 bull run is nothing compared to what is coming to the cryptocurrency industry. So, there is still time for you to start investing in Bitcoin. If you want to invest in Bitcoin, you can either buy and stash in a cold wallet or you can start trading on a good exchange.
After joining a cryptocurrency exchange, you can start trading Bitcoin. If you already know how to trade fiat money, trading Bitcoin isn’t going to be too challenging. You just need to keep in mind that the cryptocurrency market is far more volatile than the regular forex industry. Keeping this at the back of your mind will help you manage your expectations.
If you don’t have any knowledge of trading, your best bet to making money from trading Bitcoin would be through a trading bot like Immediate Bot. Immediate Bot is an automated platform that allows users to earn money from trading cryptocurrencies on the go. All you have to do is make the deposit and set the parameters. The bot will handle everything else for you.
Now that you have a basic understanding of how blockchain technology and Bitcoin works, you can decide if you want to invest in the crypto sphere or not.