In the most recent years, you’ve most likely heard the term ‘blockchain’ technology. It sounds complicated, but in reality, this digital currency is easier to understand than it sounds.
Blockchain is based on digital information (known as the blocks) and is stored in some sort of public database (known as the chain). This is where the term ‘Blockchain’ comes from.
Blockchains store different types of information on a public database. This information will range from; transaction date and time, who participated in the transaction, transaction fees, your own digital signature and it’s own generated hash code.
The entire blockchain network has the same method of generating a hash code for that specific transaction, a hash code can look like this: “4bbj3390ozlk1mjd401jqra00nzz32s34dlowp35”
Each hash code will be unique in its own way, but you purchase from the same website and in a small time frame from the previous transaction, the hash codes will look very similar.
For blockchain to work, there must be a transaction and must be verified. On top of that, the transaction must be stored inside a ‘block’ of information and given its own hash. This happens very quickly. If we take a look at bitcoin’s blockchain (created by Satoshi Nakamoto), we can see that their blockchain is not private, so you can see the transaction data along with the time, where and made by.
As intimidating and off putting as this sounds, it is extremely hard to manipulate. The reason for this is that there are so many (millions of) copies of the blockchain that are fairly identical. This means that the chance of the blockchain being distributed is near to impossible. If a hacker wanted to do something so malicious, they likely would have had to manipulate every identical blockchain, this is what is known as a blockchain being a “distributed ledger”.
You can get a ‘Crypto Advisor’ to give you advice on cryptocurrency and blockchains to send you in the reliable and right direction. It’s not easy to become an expert at this particular thing as you have to be into it all the time and understand the market, this is where Crypto Advisors and really help.
Christian Ellul is a Founding member of the European Blockchain ‘Think Tank’. ‘Think Tank’ is a non-profit organisation that brings many respected blockchain experts across 15 different countries to talk on the current ‘EU Token Regulation’. Their main goal in mind is to provide recommendations to make amendments to the policy to the EU, and allow a regulated ecosystem regarding these digital assets.
This organisation will help bring easier cross-border scaling and help combat anyone taking advantage of the price difference in different markets around the world.
Think Tank is a great organisation with the goal to make blockchain transactions more fair, setting us up for the future.