Remember the days of the internet? When it was first introduced, even some of the worlds' billionaires said its just a trend that will die in time. Today, just a few years later, we can't seem to function without the internet! The exciting part is, the internet is the stepping stone to even more intense and exciting technology that will revolutionize the world, namely, blockchain technology.
It took time for people to widely accept the internet and comprehend how it works, and so it is with blockchain technology. What is blockchain technology? Here is the absolute simplest explanation available, and why you need to understand how it works. This could make you wealthy some day, so read on…
What Is Blockchain Technology?
Probably one of the biggest reasons cryptocurrency and blockchain technology is not as accepted among many is the lack of knowledge about how it works, and what it is capable of doing. But before we discuss exactly what blockchain technology is, there are a few things its important we understand, to better comprehend the real potential behind the future of the modern technology.
The Basics of Blockchain Technology
The blockchain technology is basically a public ledger that is available to multiple parties. The ledger is stored on multiple “nodes”, or computers, across the world. Now before we go any further, I'm sure some of you reading this are wondering either “what is a ledger?” or, “what is a node?”. Both are great questions.
A ledger is simply a list of transactions recorded. Your bank account transaction history is an example of a ledger. The difference between your bank account ledger, and the blockchain ledger is that your bank has total control of the ledger. We simply trust their business ethics that what they report on our ledger of our bank transactions is correct.
Rather than being controlled by one company or entity, the blockchain ledger is decentralized meaning its stored across multiple computers and locations, making it difficult for anyone to hack. The computers that make up the blockchain network are in more than one location, and are not controlled by one central authority like a bank. These computers that make up the blockchain network are referred to as nodes, or full nodes.
An example of what we mean by decentralized, is the internet itself. The internet is accessible through millions or even billions of computers worldwide. For one to destroy the internet, one would have to take down every computer in the entire world, a task that would be impossible to do.
But what if there was just one computer that controlled access to the entire internet, that if taken down would destroy the internet network? This, on the other hand, would be entirely possible, if not probable, to hack the entire internet access. All one would have to do is target the one computer that controls the network.
Why blockchain technology is near impossible to hack
Just like the internet is hosted by billions of computers, blockchain technology is hosted by multiple “nodes” that store the blockchain ledger database. In order to hack the blockchain, one would need to hack the majority of the nodes that store the data.
The way the nodes work, is through a consensus approval of each transaction recorded on the blockchain. For example, when one person makes a purchase of bitcoin, the transaction first needs to be approved by the majority of the blockchain nodes, in order for that transaction to be verified and posted on the blockchain ledger.
Transactions are approved on the blockchain nodes through complex algorithms being performed behind the scenes by “miners”. Miners are simply the people powering the computers and performing the complex algorithms to verify each transaction posted to the blockchain network.
Once the majority of the nodes have approved the transaction, it is then posted on the distributed ledger as a “block” or transaction, thus the term “blockchain”.
In order for the entire blockchain network to be hacked, one would have to hack into the majority of all the nodes that store the blockchain data. This is a task that is near impossible, making the blockchain the safest ledger available.
Cryptocurrencies are just the beginning of blockchain technology
You may be familiar with bitcoin, or cryptocurrencies. They are simply a digital currency that uses the blockchain technology. They are the first entities and organizations that began using the blockchain technology. By simply purchasing bitcoin through your cryptocurrency account, your transactions are first approved by the majority of the bitcoin nodes before the transaction is finalized and added to the blockchain ledger.
The future of blockchain technology is the purchasing of more than just cryptocurrency. You will be able to purchase and confirm other transaction such as real estate, vehicles, and even access medical records through blockchain technology.
Although this concept may be difficult to understand in the beginning, it will soon become widespread and well understood by the general public, just as the internet was in its beginning, and now is in modern history.
Still having trouble understanding the concept of blockchain technology?
Why blockchain technology is the future of the internet
As you can see, blockchain technology has the potential to speed up common transactions that many people do each day, and reduce the amount of fraudulent activity being performed. Not only that, but record keeping as we know it will now be quicker, safer, and near perfect accuracy.
Think back to the 70s when email was first invented. Back then, the thought that more people would send mail via email more so than via the post office, was a ludicrous thought to say the least. Now days, nearly 205 billion email messages are sent per day.
How about the 90s when the internet was just born? Even top billionaires of the world like Bill Gates didn't believe the internet would flourish. Now, the average American spends nearly 24 hours per week online! (and that's just the average, take into account the amount of time we spend on smartphone apps and that number skyrockets).
Aside from the overwhelming statistics of past technology advancements, think about it this way. The Pentagon that stores some of the most sensitive data in the US, could be hacked into and the entire data could be altered and stolen. Banks, which hold sensitive financial information, if hacked into, could have billions of dollars stolen and the lives of millions would be dangerously affected.
If there was a technology available that fixed this loophole of the potential danger of centralized sensitive data being corrupted, don't you think that every major company and person at some point would want to adopt this technology? YES! And many of the big banks and public companies already are!
Some of the biggest companies today that are supporting blockchain technology include companies like Bank of America, IBM, MasterCard, Fidelity Investments, Dell, TD Bank, Microsoft, Qualcomm, Google, Cisco Technology, Hewlett-Packard (HP), and many many more.
How to profit from the rise of blockchain technology
You may be familiar with Bitcoin, Ethereum, and other cryptocurrencies like Litecoin, Bitcoin Cash, etc. These cryptocurrencies, starting with Bitcoin, are some of the first entities created around the blockchain technology. Where Bitcoin may have originally been made to have a decentralized currency, whose value was based off of basic economic laws like the law of supply and demand, the technology used to monitor and store these ledgers is being adopted in many industries today.
You might be wondering how you can potentially profit from this technology revolution in the early stages. The easiest way is through buying and investing in some of the main and most well-known cryptocurrencies like Bitcoin and Ethereum.
Yes, it is a volatile investment, but so it is with any new and growing technology that has later been adopted worldwide. The best advice for investing, is only investing an amount in which you wouldn't be devastated if you lost entirely. Whether this be $1,000, $500 or even just $100, the most trusted place to begin is through Coinbase, a cryptocurrency wallet that allows one to buy and store the 4 main cryptocurrencies which are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The best part is, if you invest up at least an accumulative amount of $100 within 180 days of opening your account, you will receive $10 for free when using this account setup link here.
Alternative ways to profit from Blockchain technology
Other ways that one could profit from blockchain technology include investing in companies that have plans to, or already have adopted the blockchain technology. As of recently, an ETF (exchange traded fund) was recently created to allow one to invest in Bitcoin through the stock market. The ETF symbol is BLCN, The Reality Shares Nasdaq Blockchain Economy Index.
Companies like Nvidia, Overstock.com, Advanced Micro Devices, and Microsoft (to name a few) are great places to start if you are looking to invest in the stock market and take advantage of the blockchain technology revolution.
To start investing in companies adopting the blockchain technology, I recommend these guys for a quick setup, great service and respected reputation. Setup is free.
The best place to educate yourself on Blockchain technology
Lets face it, new technologies are often hard to comprehend in the beginning. Blockchain may still sound like a complex technology that you just don't understand yet. You're not alone! So it was when email was created, and when the internet flourished.
Investopedia Academy has put together one of the only cryptocurrency beginner courses to teach you the basics in depth. Their credibility is second to none in the investment and cryptocurrency space, and so is their course. Their “Cryptocurrency for Beginners” course is geared toward educating anyone interested in the blockchain technology and cryptocurrency revolution. The course explains in the simplest forms possible, exactly how cryptocurrency, cryptography and the blockchain technology actually work.
The next phase of the internet
Blockchain technology is the next phase of the internet, and the next technology that will change the way our economy and businesses operate now and in the future. It will speed up transactions, lower business operating costs dramatically, improve and nearly eliminate fraud, counterfeit currencies and merchandise, and enhance our monetary systems worldwide.