What is Cryptocurrency?, What is Bitcoin?, What is Blockchain?, Blockchain Security, Benefits of Blockchain Technology

WHAT IS BITCOIN

1. Bitcoin is a digital currency, primarily used for payments. Bitcoin uses a one-way blockchain technology, however, the blockchain can be used to record and transfer anything of value. not just financial transactions.
2. Bitcoin, on the other hand, is still only being used for digital payments, While Bitcoin is gaining in popularity with its price continuously hitting record highs, it is designed primarily as a method of payment.
3. Bitcoin is blockchain-based system. The blockchain is not a Bitcoin-based system.
4. To view the all transactions visit https://www.blockchain.com/explorer

WHAT IS CRYPTOCURRENCY?

1. A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
2. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.

What is Blockchain Technology

1. To put it simply, a blockchain is like a database; it's way of storing records of value and transaction. Unfortunately, that simple definition won't excite people and will leave many people thinking  "so what? all that type for a new type of database?"
2. When transferring money or paying for goods and services, people trust credit card companies and banks will take the correct amount from their bank account and deposit it into the account of the seller. The seller trust that the credit card company will pay them the money and if there is any dispute or fraud on the transaction it will be handled through the credit card company.
3. In the past when any asset of value or transaction was recorded in a database, people relied on a third party like a bank, government or company to record this information. People trust that banks won't steal their money as the government regulates them. If a bank fails, people trust that the government will ensure their deposits of money are safe.
4. If a buyer at a store is paying with cast, the seller trusts that they can take this piece of paper with a number on it that is backed by the government to another store and exchange it to pay for other goods and services. The seller also trust that if they take the note to a bank, they can convert it into a digital cash balance in their bank account that can be used to pay for purchases using credit cards & debit cards or online transaction using internet banking.
5. The blockchain is like a database, it is a way of storing records of value and transactions. Almost anything can be recorded on the blockchain. Blockahin technology removes the need for an intermediary, allowing people to transact directly with each other.

Blockchain SECURITY

1. Data entered onto a blockchain is immutable, meaning it can't be altered or changed. Every block of data on the blockchain can also be traced back to the first.
2. Throughout history there have been countless cases of fraud and manipulation of data. Often when fraud is committed, the trail leading to the occurrence of fraud is altered making it difficult and time-consuming to investigate. The trail of data may have been altered so much that it's impossible to trace the transactions and fraud.
3. With a blockchain-based system, past transactions can't be altered leaving a clear trail of what has occurred on the blockchain. As mentioned in the decentralized section of the blockchain, altering an existing transaction would require controlling over 50% of the computers on the network at the same time, which is almost completely unfeasible. If this did occur, it would also be quickly spotted by the other computers connected to the network anyway.

BENEFITS OF BLOCKCHAIN TECHNOLOGY

Decentralization:

1. The decentralization of a blockchain database is a key component of how intermediaries can be removed while at the same time increasing transparency and trust. Blockchain are maintained on a single shared ledger, instead of multiple ledgers that are privately managed by different institutions. People and companies do not have to give up control to a single institution when using a blockchain. This makes collaboration between parties faster and easier to manage.
2. To use the example of a group of banks transferring assets between each other, in the current structures and systems each bank would maintain their own ledger and transaction record separately. By using a blockchain-based ledger, they would only need to reconcile transactions to one shared ledger that all banks would have access to and agree on the correct record of transactions.
3. The decentralized structure of the blockchain is an advantage to companies that may be competitors but are working together as part of an industry group or consortium. A company may be wary about handing over data or collaborating on a database that is owned by a competitor.
4. Centralized database are prone to hacking, data loss, and corruption. The blockchain has no central database that is a point of failure, manipulation or corruption of data. All computers on the blockchain network have a copy of the blockchain, reducing the risk of data loss. To manipulate the data on a blockchain requires "hacking" over 50% of the computers on the network at the same time, which is almost completely unfeasible.

HOW BLOCKCHAIN TECHNOLOGY WORK DIAGRAM

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