Apart from being the hottest investment opportunity in the second decade of the 21st century, what really gives the power is the underlying technology, called Blockchain.
“Blockchain Technology” is a term you have probably heard before.
However, most of the people don’t know the difference between Bitcoin and blockchain.
Bitcoin is cryptocurrency that goes up and down.
On the other side, Blockchain is the underlying technology of cryptocurrencies.
For the first time now in human history, people everywhere can trust each other and transact pier to pier.
The trust is established not by some big institution but by collaboration, cryptography and some clever code!
What does the public ledger enable?
We hope the story from the park bench was clear and easy to understand. So, did you see what happened?
1) It’s open source remember? In the beginning, we defined the total number of digital apples in our public ledger. I know the exact amount that exists. Within the system, I know they are limited.
2) When I make an exchange I now know that digital apple certifiably left my possession and is now wholly yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.
3) Because it’s a public ledger, I didn’t need third-party to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice…
Within the system, the exchange of a digital apple is now just like the exchange of a physical one.
It’s now as good as seeing a physical apple leave my hand and drop into your pocket.
Moreover, just like on the park bench, the exchange involved two people only. You and me — we didn’t need the third party there to make it valid.
In other words, it behaves like a physical object.
But you know what’s cool?
It’s still digital.
We can now deal with 1,000 apples, or 1 million apples, or even .0000001 apples.
I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in New York.
How cool is that?
Most of you are not going to send digital apples to your friends. It was an example to understand the point of blockchain technology.
It allows everyone to send to everyone digital cash all around the world without a third party. Excluding the third party will enable us to do it much faster, decrease the risk of losing money and decrease fees.No HTML was returned.
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.