In the last ten years, if there is one thing that took the world of investing by storm, it is blockchain and cryptocurrency. However, a lot of it is still unclear to many as there is a huge amount of information available on this topic. So here’s everything one wanted to know about Blockchain and Cryptocurrency.
What is a blockchain?
To understand blockchain, one needs to know what is a database. It is a storehouse of information stored in the electronic format. Blockchain is the database that stores information in data blocks. After all the available space on a block is used up after the entry of new pieces of data, it is chained to the previous block.Thus, these blocks are chained in the chronological order. Several types of information can be stored on blockchain but so far, it is being used as a ledger.
Uses of cryptocurrency
- a) Cryptocurrency: It is the foundation stone for popular cryptocurrencies such as BitCoin, Ethereum etc. It gives power to the cryptocurrencies to operate without the interference of a central authority. It reduces the risk of getting one’s private details hacked but also removes the annoying expenses such as transaction and processing fees. It is a boon for the countries that have unstable government. It gives one the freedom to have business relationships with international players.
- b) Health care: it enables the hospital administration to securely store their patients’ data. It aids in the generation of medical records and keeps them private.
- c) Property records: if one has been to a real estate agent’s office, then one knows how chaotic it can be in the office. Blockchain brings order and makes it easy for the person to keep the records safe from the prying eyes. It is cost-effective and more secure than the traditional ways of maintaining the records.
Role of blockchain in cryptocurrency
As mentioned before, the cryptocurrency exists solely due to the blockchain technology. The online wallets such as Tezbox wallet exists only due to this database. It decentralizes the transactions, therefore eliminating the risk of one person ending up with the complete control. It aids in carrying out the secure transaction in places that have volatile currencies and unstable monetary dealings.
Just like the digital points, one can use to buy stuff online, cryptocurrency is a type of digital money that one can use for various purposes. The cryptocurrency one uses to keep the information gathered during the transaction safe and does not require any kind of disclosure. Some of the popular ones are Bitcoin, Ethereum and Tezos. These cryptocurrencies have their wallets that the users can use to make transactions such as Tezos has Tezboxico wallet.It gained popularity over the years because it follows a decentralized system and does not require any form of disclosure by the user.
These are the important facts one must know if one is looking to understand the blockchain, its functions and its relevance in the world of cryptocurrency.