Do you know what blockchain is? Nowadays, digital currencies, the changes and development they have brought are invading international portals. However, it is not uncommon that even after reading entire articles, we still do not understand how technology really works.
Blockchain,sometimes referred to as Distributed Registry Technology (DLT), has made the history of any digital asset immutable and transparent through the use of decentralization and cryptographic hashing.
What you will read:
- A blockchain is a database that stores encrypted blocks of data and then binds them together to form a single chronological source of truth about the data;
- Digital assets are distributed rather than copied or transferred, creating an immutable record of an asset;
- The asset is decentralized, allowing full real-time access and transparency to the public;
- A transparent registry of changes preserves the integrity of the document, which builds trust in the content.
What is Blockchain?
Blockchain is best known for supporting cryptocurrencies like Bitcoin, but technology versions are rapidly making their way into many aspects of daily life, from vaccine passports to finance, video games and international payments.
A simple analogy to understand blockchain technology is a document in Google. When we create a document and share it with a group of people, the document is distributed instead of being copied or transferred.
This creates a decentralized distribution chain that gives everyone access to the document at the same time. No one is restricted in waiting for changes from another party, while all document modifications are recorded in real time, making the changes completely transparent.
Sure, blockchain is more complicated than a document on Google, but the analogy is suitable.
Blockchain is a particularly promising and revolutionary technology because it helps reduce risk, eliminates fraud, and brings transparency in a scalable way to countless uses.
Example: When a girl needed to show vaccination proofs to attend a folk-pop concert in Bogota in September, she pulled out her phone and launched her VitalPass app, which uses blockchain technology to generate a code (QR) that allows a site to verify a user status.
A digital passport is more reliable than a paper vaccination card, which can be easily counterfeited because there is a blockchain technology behind it.
The market for blockchain technology and services is projected to grow to $ 67.4 billion by 2026, up from $ 4.9 billion this year, according to researcher MarketsandMarkets.
In its simplest form, blockchain is a shared database where digital information is recorded and stored in “blocks” that are effectively immutable, making the data in the chain secure and verifiable.
The software code called smart contract allows blockchain to take over some functions of a bank or a game without any human involvement.
The most popular (and perhaps most controversial) use of Blockchain is in cryptocurrencies. Cryptocurrencies are digital currencies, such as Bitcoin, Ethereum or Litecoin, that can be used to purchase goods and services.
Some key areas where blockchain is revolutionizing:
One frustration among players is that they can not get their characters from one game to another and sometimes can not easily sell the weapons they win or buy. Blockchain gives players the opportunity to take advantage of their skills.
Axie Infinity is played by more than 1 million active users every day, most of whom pay to play, who earn digital coins by defeating rivals, and who produce delightful monsters like immovable land, or NFT, blockchain-tracked assets that they can sell on cryptocurrencies. Some people in developing countries say that such games have already become their main source of income.
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Traditional video game companies are entering the arena. Ubisoft Entertainment SA, the French maker of titles like Assassin’s Creed, has invested in Animoca and Ubisoft, CEO Yves Guillemot says he wants the company to be a key player in blockchain games, which he sees as a growth driver for the industry. However the risk of fraud is high.
People who send funds from the US to relatives abroad are accustomed to giving big cuts to intermediaries like Western Union Co. That is changing In October, Facebook’s parent company, Meta Platforms Inc. launched a pilot program to allow consumers in the US and Guatemala to send money internationally for free.
In support of the service is the startup Paxos Trust Co, whose so-called stablecoin operates on the Ethereum blockchain and whose value does not change much from day to day. Blockchain infrastructure is also expected to make settling payments and commercial transactions faster and cheaper.
Below is an explanatory video of Blockchain.
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