Blockchain: The Technology Behind Cryptocurrency

By Stan Peterson
Published August 25, 2021 Updated August 30, 2021
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Blockchain: The Technology Behind Cryptocurrency

By Stan Peterson
Published August 25, 2021 Updated August 30, 2021

Since the inception of cryptocurrency, it has become a dominant investment choice, especially among the younger generation. The crypto revolution started with the desire to do away with third-party financial institutions; the innovation that made this possible was blockchain technology cryptocurrency.

What Is Blockchain Technology?

Blockchain is a digital ledger/database of transactions that cannot be changed once registered. As a transaction occurs, its data is copied to every computer on the blockchain network. 

What does this achieve?

Consider that your teacher marked your copy, but you somehow change the F to an A on your sheet. However, the teacher has already got a record of it in her notebook and her computer. So, even if you change the grade on your copy, the system still knows the actual score. You can try mischievously accessing her workstation and notebook as well. But the teacher might get so paranoid that she is now registering all the scores on everyone’s copy. So, now she has hundreds of copies of your grades. That is her using blockchain on paper.

Similarly, even if a hacker gains access to one computer on the network, the record on other participating computers remains the same, making the blockchain ledger immutable and secure.

How Does It Work?

When a new transaction occurs, it is sent to a P2P (peer-to-peer) network of computers. The computers then solve a computational puzzle to verify the authenticity of the concerned transaction and register the transaction in a block which is then added to the front of the blocks of the previous transactions. It creates a sort of chain of blocks of transactions, hence the name Blockchain. This chain cannot be changed by anyone as the ledger is copied to every computer on the network. If a computer has an inconsistent record of transactions, the blockchain network rectifies it by syncing it with others.

Advantages of the Blockchain Technology

Blockchain is a revolutionary advancement offering a lot of advantages to its users. Some of the key benefits are:

  1. Secure
  2. Anonymous
  3. Immutable
  4. Distributed and Transparent
  5. Unanimous
  6. Time-stamped

Bitcoin and Blockchain

Blockchain was first conceptualized in 1991 to create time-stamped records that cannot be tampered with. In 2009, Bitcoin founder Satoshi Nakamoto used the idea in a real-world blockchain cryptocurrency for the first time. Bitcoin began the use of blockchain to maintain a transparent yet secure record of transactions. After that, several cryptocurrencies inspired by bitcoin, such as Ethereum, Litecoin, and Ripple, emerged with their own nuances to the implementation. What remained foundational to date, however, was the blockchain.

Blockchain Technology Applications in Real Life

Blockchain finds widespread applications given the creativity enthusiasts have introduced to create digital solutions. A few of such applications are:

  1. Cryptocurrencies
  2. Fair Elections
  3. Smart Contracts
  4. NFT Marketplaces
  5. Secure transfer of critical data
  6. Intellectual Rights on Original Content

How Zebpay helps its users benefit from the technology

Zebpay is one of the leading crypto exchanges in the world. One can use Zebpay to buy cryptocurrencies, trade-in them, or pay someone using crypto money. As a facilitator of crypto trading, Zebpay enables its users to make money by investing in a potentially high return crypto asset. The vision is to achieve financial inclusion by serving the underbanked, underserved and undervalued.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
592 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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