Written by content writer of The Arsenio Buck Show – Jiun Ting Yong
What is blockchain?
Blockchain was a technology to power the Bitcoin back in 2008. You’re hearing about Blockchain now because Bitcoin boomed since the recession of 2008. The boom is caused by Japanese and Chinese investors. The concept is simple, but when you look deeper, it is a little bit complex.
Blockchain was built based on peer to peer network where every transaction is recorded like banking, medical, purchasing and others. Every data will be recorded, and a new block is created and added to the chain — thus giving it the name blockchain.
Unlike records that you’ve come along both online and offline, blockchain will encrypt the data so that no one can hack or steal from you. However, it can be complex each time a transaction happens, it requires to solve a complicated math problem. People who solve this problem will be rewarded with cryptocurrency through ‘mining’.
If you own a cryptocurrency, you will have a private key (a long password) as an address to the blockchain. With this key, you can withdraw your money for daily to daily expenses. However, when you lose the key, then you cannot access your money.
Information of the blockchain will be publicly available and it is decentralized. This means it doesn’t rely on single player or computer network to function. Therefore, any transaction will be available to anyone and visible to the public.
Blockchain is a public ledger
If you have Bitcoin and use it regularly, that information will make available to the public, but rest assured, the other party wouldn’t know your identity because of encryption. However, both parties know the value of the transaction.
Many people considered the blockchain as an alternative to the traditional banking and middlemen for money transfer like Moneygram and Western Union. With the transaction verifiable by blockchain that would disrupt middlemen like Western Union and Moneygram as well as the banking institution.
This is very interesting to say at the very minimum. First, I want to say BIG THANKS to my content writer for writing this, and it seems extremely complex, too. If the security about blockchain can become even more secured, that way your identity or wallet isn’t jeopardize because of the exposure, there’s an excellent chance that banks will go away.
China’s ministry of industry and Information Technology released its public blockchain ratings, ranking various blockchain projects like Ethereum in the global cryptocurrency sector based on three criteria: technology, application, and innovation.