When I first heard the term “Blockchain”, I began searching the web for meanings and examples of this term. My first thought was, this is not for me. However, after listening to people talk about Bitcoin, Ethereum, Crypto, etc. I decided to read the information on these topics. That’s when I found that Bitcoin- introduced by Santoshi Nakamoto – and Ethereum are Cryptocurrencies. A cryptocurrency is a form of payment without the use of a “Central Authority” or bank. Again, when I found this information, red flags popped up! Then I read the information on Blockchain. So, what is Blockchain?
Simply put, Blockchain is:
- A digital record system made up of individual transactions called blocks. This ledger is a large, global, decentralized (no “Central Authority”) spreadsheet. New blocks of information can be added to the system. However, existing blocks cannot be changed. Also, each block connects to the previous block; hence the name Blockchain. Blockchain uses “digital wallets”. These wallets send and receive online transfers. Some commonly used wallets are: OMINEX, MyEtherWallet, MetaMask, to name a few. However, we recommend the digital wallet TippingCircle. It is among the leaders in Blockchain compliant solutions.
- A tracker. This keeps records (time-stamps) of digital transactions as they occur. Digital transactions do not have to be coins or tokens. They can also be sets of information.
- A network of nodes. A node is a computer used to receive and validate transactions. Anyone on the internet can access the data. The network also makes it possible to audit the ledger at any time.
Originally developed for Bitcoin, the tech-savvy community is finding more uses for Blockchain. Below are a few uses:
- Finance. Finance makes a strong case for using Blockchain. Money or asset transfers can take place without the need of a centralized unit or bank.
- Supply Chain. Blockchain allows companies to accurately track goods.
- Healthcare. Combining HIPAA with Blockchain is a win-win for the medical field. By doing so, you will be able to safely transfer sensitive patient data from one place to another.
As you can see, there are many new uses for Blockchain. Because there are practically no barriers, the use of Blockchain can become a part of our daily lives now or in the near future. As a result of this, let’s take a closer look at security.
Security offered by this technology makes it difficult for data to be tampered with.
Unlike the World Wide Web which uses “Username and Password” to protect our identity and assets online. Blockchain uses encryption. This encryption includes a “public key” and a “private key”. The “public key” is a randomly-generated string of numerals. It uses the address of the user on the Blockchain. The user’s address is recorded when transactions are sent across the network. The “private key” is similar to a password. It gives its owner access to digital assets. Therefore, protecting your “private key” is necessary. We recommend the Trezor Cold Storage Wallet. Trezor is offline storage of digital wallets.
As you can see, with Blockchain, the Internet (World Wide Web) benefits from a new layer of functionality. If you want to take part in this evolving technology, consider becoming a “miner” of Cryptocurrency. Want to know how you can use your computer to safely “mine” Free Bitcoin? Check out this information on “Smart Mining”.