With the rise of decentralized currency and platforms, there is a need to understand the technology behind it which is called a blockchain.

Back to the beginning…

Before crypto, we had traditional banks (third parties) that enabled us to make financial transactions. We had to trust banks with our information to help us send money to whoever we wanted and also keep track of financial expenses or transactions. The bank was controlled by a single authority that had the right to change details or even approve transactions. The rise of a decentralized system came up to encourage individual autonomy within the monetary system.

Blockchain — The decentralized technology

Many people still don’t understand what a blockchain is, hence the purpose of this article. Just like the name implies, it is a chain of blocks. Just imagine unlimited small blocks, chained and connected together. These blocks contain digital information about each transaction that has been made with Bitcoin.

Bitcoin was the first cryptocurrency to be hosted on the blockchain. Each block contains transactions that have been done within a certain period of time while the whole blocks contain the summary of transactions that have been made since the inception of bitcoin.

Blockchain is NOT a programming language.

Blockchain is NOT a cryptographic codification.

Blockchain is NOT an IA or Machine Learning technology.

Blockchain is NOT a Python library or framework.

Blockchain is not a cryptocurrency. — Telmo Subira Rodriguez

Where are they located?

Essentially, blockchains are networks of computers located around the world. The more computers, the stronger the blockchain.

Types of Blockchains

There are two types of blockchains which are listed below:

Public blockchain: As its name refers, it is open-source software that people can easily join and has a global foundation. It is also decentralized. A popular public blockchain includes Ether (ETH) where other cryptocurrencies build their tokens.

Private blockchain: This type of blockchain is similar to the blockchain. It defers in the sense that it is not open-source and it runs a centralized pattern and is hosted on private servers. Here, creators can track personal transactions specific to their business.

Benefits of Blockchain technology

There are numerous benefits of blockchain technology which include:

• It provides the method of recording and transferring data in a transparent, trusted, and secured way.
• It removes the need for intermediaries or third parties.
• It provides financial services to the unbanked and encourages transparent financial transactions for the banked.
• It makes data storage safer by removing failure points.
• IoT (Internet of things) devices can share information directly with each other.
• It is decentralized and offers lower transaction fees.

In conclusion,

The advantages of blockchain technology cannot be overemphasized. Blockchain is an evolving technology and who knows what the future has in store for us.