The basics to learn blockchain technology are simple. It is basically a series of blocks that are connected through cryptography.
This chain is seen as a ledger of sorts that holds information in each of its blocks.
By its nature, blockchain is highly resistant to modification of data. It is like a ledger that records transactions between two parties in a verifiable manner.
What Is Blockchain Technology?
This digital ledger is a chain of records, which does not exist in one place. This makes blockchain technology a truly public and verifiable digital record keeping system. There is no central version of this type of ledger for hackers or anyone else to corrupt.
The data is hosted on millions of computers and other systems around the world that are part of a network that works together to form the blockchain.
By storing information in block form across a network where each block is identical makes it a very secure informational database. The blockchain cannot be controlled by any single entity nor can it fail at any single point, or in this case block.
How Does Blockchain Technology Work?
Here is a breakdown of how the decentralized network operates and runs. It basically works on a basis of community monitoring and engagement.
This sort of technological system is capable of checking in with itself every few minutes in a sort of self-auditing process. The network will check the validity of every transactions within a short interval period.
Each transaction that takes place on the network is called a block.
The two properties that result from a block transaction, include getting data embedded into the network and no altering any other unit of information on the blockchain. This constitutes a key rule to learn blockchain.
Every participant that wanted to learn blockchain mining is connected by a node to the larger network. These nodes connect the blockchain together with its contributors.
What Were Nodes Used for Before?
In the original application of the technology, nodes were meant to learn blockchain mining. Every node has an incentive to participate in the network because they all have a chance of winning Bitcoin tokens.
The more people that use the platform and contribute, the more value is built for the cryptocurrency tokens. There are over 1600 cryptocurrencies, which are exchangeable token values, in circulation.
The idea of gaining value with more people is a consistent trend across all the cryptocurrency platforms.
The 2008 technology is the product of Satoshi Nakamoto, who is either an unknown person or an unknown group of people in the tech community. However, this technology has involved quite a lot since the original release by Nakamoto.
There have been new developments, updates, currencies, and much more to offer the world since the original release almost a decade ago.
Blockchain technology allows users on the network to distribute but not copy information. While it was originally designed to trade and hold the original digital currency, Bitcoin, the world is finding other ways to use blockchain technology.
Having some basic background on the way this technology works can show you why it is considered to be so revolutionary in 2018. The likelihood of the technology being adopted even further is rather high.
The applications of blockchain technology are being rapidly applied in healthcare, education, government, and many other areas of society on a regular basis.
What Is the Decentralized Network
By its nature, it is useful to learn blockchain to help build this technology that forms a decentralized network. There is no one dominant force on the network, so whatever happens on the network is due to the blockchain and its users as a whole.
Due to the security and verification on the network, there may no longer need to be developments in verification techniques for traditional commerce activities. However, this is unlikely to be the case at this point. It is more so wishful thinking.
Nonetheless, there are many applications that make blockchain a key part of digital society. The block chain technology is capable of making stock market transactions simultaneous to making government records fully public online.
The global network of computers manages the database of transactions of information whether those happen to be Bitcoin or raw documents. This means that the database is managed by the network and not by any one central authority, such as an individual or a node.
The community oversight makes it hard for any one party to take advantage of the network at any given time. In fact, many economists and blockchain enthusiasts think it is impossible.
Key Areas to Apply Blockchain Technology
You do not need to know about the specifics to learn blockchain. The technology can still prove to be very useful in your life.
Finance has almost always been the best use case for this sort of technology. In fact, you can probably imagine how much financial technology has grown because of it.
The mining of the digital tokens alone is proof enough of blockchain’s push forward. There is a lot of room to teach and learn blockchain. The cryptocurrency and blockchain enthusiasts can learn about the possibilities of applying this technology further.
It is also the classic example, which has driven cryptocurrency forward across various other fields of interest, including medicine and education.
Using Blockchain In the Mainstream
Anyone can learn blockchain and how to use it properly due to the release of a graphical user interface (GUI) in the form of digital wallets. These wallets can store, trade, and spend cryptocurrencies from one blockchain user to another.
There is also an identity associated with users having a wallet, which makes it easier to conduct transactions online. This identity management will likely grow as blockchain applications and other GUIs start to develop further.
The blockchain technology’s do-it-yourself approach to transacting and mining has captured a lot of people’s attention.
Blockchain For Enhanced Security
Storing data across the network eliminates many risks associated with storing information centrally. The network lacks centralized points of vulnerability, since the information is diversified and spread out.
Additionally, blockchain’s additional security methods like public and private keys use encryption technology for support. The public key can be seen as the blockchain user’s address on the network while private keys are more like passwords.
The added security on blockchain may eventually be effective and popular traditional financial institutions and surpass Wall Street expectations. Even Goldman Sachs has pointed to blockchain technology holding great potential to optimize the financial industry and potential save over $6 billion a year on resources.
Creating A New Internet
The learn blockchain technology approach for users has effectively introduced a new and more secure internet in some sense.
The number of jobs offered in blockchain technology development have shot up significantly in the last two years. The shift in numbers from 2016 to 2017 represented a 207% increase in job within blockchain focused industries.
Blockchain technology can provide users value and authentic information in a digital age that holds a lot of mistrust toward a lot of industries.
Here are some of the areas that blockchain can revolutionize moving forward.
Building Smart Contracts
It is important to learn blockchain and cryptocurrency operations are built on protocols, which are enabled depending on various situations.
The decentralized network can store and activate contracts in an effective manner via blockchain technology. Depending on the situation, a contract’s stipulations of distribution, whether of funds or information, can be put into effect simply.
However, the application in the legal and financial space to this degree is still quite experimental. Nonetheless, smart contracts do seem quite a plausible next step for blockchain technology moving forward.
Building A Sharing Economy
Learning blockchain technology can open the doors to a truly decentralized sharing economy where direct peer-to-peer interactions are enabled.
This sort of application can cut out middle companies offering specific services such as Uber with ride sharing options. Using blockchain technology allows you to directly interact with other parties in an open, share economy.
The added benefit is that there is no additional transaction fees or convenience fees added on to using the blockchain technology – at least for the time being.
Building Out Crowdfunding Opportunities
Blockchain technology allows people to have a direct say in product development. The technology supports outside funding and can also support more diverse venture capital funds by its nature.
One example of this capital funding is Ethereum’s Decentralized Autonomous Organization (DAO) raising over $200 million in just two months using blockchain technology.
Using DAO tokens would allow you to vote on smart venture capital funding, for example, as one more application of blockchain technology. This technology has the ability to bring a new angle to economic cooperation and best community practices.
Building Up Governance
The transparency and veracity of information on blockchain technology platforms allows for clean elections and polling results.
Decisions and answers can be distributed through tokens to the blockchain, which will record them in respective blocks as the answers start flooding in.
Company governance can change quite a bit too. By becoming fully transparent and verifiable, digital assets, stocks, and other financial holdings can become a lot more secure on the network.
Building Supply Chains
The veracity and transparency on the blockchain technology platforms and the network, again, help with bulding trust in commercial products.
The commercial products can be audited for quality and price. It would be near impossible to get away with fake commercial product sales and price gouging practices on the blockchain platform.
Building Up File Storage
It is easier and more streamlined to store information on the blocks in a blockchain platform.
The network can help organize and access the information without having any of it disrupted easily. Everyone on the platform will have access and a say in how the information is used.
Building Predictions to Markets
There is an element of profitability to this development to learn blockchain technology.
A reward system can be put in place through blockchain protocols that would reward the user on the network that suggests or votes for the correct predictions. These predictions can be about the stock market to natural disasters.
Building Protections for Intellectual Property
The likelihood of duplicating research or other works that should be protected as intellectual property is extremely difficult under the constraints of blockchain technology.
The transparency of the system allows users to see when information has been duplicated or infringed upon. The entire network would be updated about a chain to the nature of the blockchain.
In short, the blockchain technology platforms can help protect intellectual property rights and contracts whether it is for individuals or multinational corporations.
Building Identity Management Services
There is definitely a need for better identity management online. Every site and customer service section requires you to verify your identity. Well, blockchain technology can help with that.
Learn blockchain and its uses in this regard because it could end up being one of the fastest seen developments to enter the digital sphere.
Many blockchain companies are already putting together tools and services to handle identity management for companies as well as websites. The transparency given on blockchain platforms is a useful source to confirm user identities.
Building on Data Management
Blockchain is a great tool for handling data management services too. The amount of space available to save data and retrieve it securely is unparalleled.
Many different blockchain companies have looked into the applications of providing data management service packages to multinational and local companies.
There is apparently a lot of space to play around and innovate in this area of development.
Final Thoughts to Learn Blockchain
Clearly, there are a number of areas where blockchain technology can be applied and used with significant impact. From data management services to trading on the stock market, the technology has the potential to change the world we live in completely.
However, the basics are still rather hard to grasp unless you start thinking of this technology as a uncrackable digital ledger. The blocks are the foundation of this ledger as they store all the information in chunks based on available space in the chain.
Various blocks hold information of certain types depending on the use of the blockchain technology and its protocols. Every blockchain has protocols in place to control the operations that are allowed to be handled on the network.
All users need to abide by the rules of these protocols if they are going to use the blockchain technology platform.
What Are Some Ways to Keep Learning About Blockchain?
There are a number of ways to keep on top of this trend that is taking the world by storm.
First, there are a many, many blogs to follow on the subject matter. You should not fall short of reading material if you try signing up for press releases from some of notable blockchain new outlets such as Coindesk or the Crypto Daily.
Podcasts are a great source of information too. A senior editor from Forbes produced Unchained, which offers a ton of details on the cryptocurrency and blockchain space.
If you are looking to explore these trends further then Twitter is always a great source of information. The fire hydrant of information tends to lead to new avenues, so keep an open mind and try to find some other enthusiasts in the blockchain field. There are tons of niche areas that blockchain is revolutionizing on a daily basis.
Lastly, Meetups are a great way to connect with blockchain enthusiast communities. You will also find developer communities that are relevant in the blockchain space. If you are interested in honing your IT skills while building your blockchain knowledge then these groups are going to be great finds.