Hello everyone, I believe you must have heard about the blockchain technology and Cryptocurrency but wondering what it is all about. You may even be a bounty hunter, working as an influencer (just like affiliate marketing but much simpler), and not have an inch of an idea of what it is all about. Well, you have come to the right article to get a foreknowledge about what Blockchain technology and Cryptocurrency is all about. This will only be a preamble and I will leave you to do all searches and post knowledge by yourself.
First of all…
Sure, you won’t be gaining any kind of knowledge like this if not for the work of a man of great vision (Jedubass) who created the platform Jedun. Sincerely, apart from the fact that I noticed the website on twitter and it got me interested, I have never met him physically to talk over the innovation. Apart from this portion of the website, I’d advise you to make the most use of this innovation and be an early adopter and benefactor. Bitcoin, as it is today, is enjoyed the most by those who knew it earlier (I only got to know about cryptocurrency on Facebook in the fall of 2017- so you can imagine).
Let’s dive in
So what the Heaven is Blockchain?
As simple as it sounds, blockchain came from two words ‘block’ and ‘chain’. A blockchain is a system of financial transaction details which are arranged according to their time of occurrence. Take each block (ledgers) and connect them together, you have a chain of blocks called the Blockchain- simple! The blockchain is a distributed ledger, which means that all transaction details are distributed across different computers scattered all over the world. This is to prevent network takeover. All transaction details are split into several parts and each part is stored on different computers all around the world- this is called Decentralization. The first blockchain technology was that of Bitcoin which worked on the principle of Proof of Work.
Proof of Work?
This is like a consensus or something that determines the behavior of an algorithm. Proof of Work means that a computer that wishes to confirm a transaction will have to perform some series of hard calculations before they can be counted genuine.
Ok… Let’s break it down
You must have heard about World War 1 and 2, when Adolf Hitler ruled Germany. At the time, Germany needed a way to send messages over a long distance through radio which cannot be hijacked by the enemies. So they formed enigma codes- these codes have a key which changes from time to time. That means if the enemies hijacked a call from Hitler and were able to decode the message they won’t be able to do so again in the next 24 hours as the code would have changed.
It means the original receiving party has to perform a series of calculation to decode a message if it truly belonged to them- Get it?
Now that is what proof of work is all about. The encoded message is the cryptocurrency.
Cryptocurrency came from Cryptographic Currency. Cryptography is a way of sending secret messages securely between a sender and a receiver. The codes to get the message unraveled is known to only the sender and the receiver. The Enigma code in the Germany example above is a kind of cryptograph. Cryptocurrency can also be seen as a smart contract which is like a normal contract only that it doesn’t involve any intermediary.
A Smart Contract is an agreement between two parties which is executed and governed by algorithms or codes. A smart contract doesn’t need any intermediaries or witnesses to enforce the terms written in it- it is self-executing. For example, if A and B agreed through a smart contract to pay a sum of money to B after B has rendered a service within a time frame. After the service is rendered therefore fulfilling the terms of the agreement, the smart contract is automatically executed and B gets paid even with ease. But if not, the smart contract will not be executed- just as simple.
These smart contracts can be sold as an asset to Mr. C who likes the basis of the agreement. Mr. C wants to serve as an assurance that B will do the work and deliver as at when due, so He pays B beforehand to take possession of the smart contract so that at the end of the service delivery, Mr. C is paid instead of Mr. B. The smart contract can be split into different parts and sold to different people who wished to be part of the whole process. The smart contract is the cryptocurrency that we all know. Bitcoin is a cryptocurrency.
In conclusion, whenever you hear Blockchain and cryptocurrency, you should at least have gotten a glimpse of what they are about. There are many blockchains and Cryptocurrencies out there as you will get to know subsequently, but Bitcoin was the first and the most popular.
Announcement for bounty hunters
You should see a list of good and running bounties in the Jedun Cryptostocksreviews forum.
About the Author
I am Ayobami Abiola, the owner of Cryptstocksreviews. I like to dive into the innovations that exist on the blockchain technology (the wonders of the blockchain) especially startups, for the purpose of enlightening my readers. Any of the articles written by me should in no case be seen as a piece of financial advice- only for information and education purposes.
Be sure to reach out to me and give your suggestions through the comment section below.
I can’t believe I still do not fully understand the principle behind it after reading this article.
Anyway, I’m sure catch up after reading a few more articles in this group.
Wow so so much interesting