In the present article, we at Zuflo Inc, intend to inform you about the fundamentals of each of these terms in simplest way possible, (i.e. Blockchain technology, cryptocurrency, and Bitcoin) so you will feel empowered enough to take a dive into such flourishing business of crypto-currency worldwide and to register profits.
Think About This Way:
- Internet comprising websites are a digital technology intended to disseminate all sorts of info,
- Internet rely upon search engines (and so are the users) to use such web-centric technology,
- Google is the most regarded instance of a high-end search engine,
- Blockchain refers to a tech-framework which is widespread and where info is stored into data blocks,
- Crypto-currency is the most prestigious way to utilize blockchain,
- Bitcoin is the primary and widely prevalent example of crypto-currency,
The Concept Of Blockchain:
At length, the design of blockchains is attempted in such a way that there is a digital ledger that is decentralized and is widely distributed too. Or, blockchain comprises a digital (electronic) form of ledger which we see in paper to store account info, and hence transaction-records are kept out there.
Precisely, in a blockchain, there is executed linear blocks like a chain which are inter-connected and are safeguarded through cryptographic proofs. Besides, the technology of blockchain is so versatile that several other activities that are otherwise devoid of financial activities, also regard it, while the nature of crypto-currencies is basically to retain transactions’ records which are confirmed.
To harp upon the concept of Distributed and Decentralized, let’s invoke the case of banks (ATM withdrawals), public records or Amazon statements mentioning items sold during a given month, clearly, such records are kept in a centralized ledger. In this scenario, such ledgers are accessed and controlled by one organization, such as a bank, a Government agency or by the senior management of Amazon for that particular country. Further, there shall be the main statement, i.e. a ledger, covering all such crucial info as an official record and in this way, traditionally ledgers are centralized since such are made and managed by a main single enterprise and where only a single set of records, act as a master database.
Conversely, in case of blockchain, this is an entirely different scenario altogether, where the operational framework is made to function through a distributed ledger, meaning only ONE ledger copy is not there and NO centralized authority or control is thereby any dominant group or agency, rather a blockchain is purely decentralized in design and implementation. All users who link to blockchain network with professional designs in mind access an electronic copy containing blockchain data which is always updated to include the latest set of everyday transactions.
In the grander scheme of things, for the purpose of maintenance, multiple users (or network nodes) from multiple locations of the world, collectively contribute to the blockchain system. Needless to mention, but every single transaction is being verified and validated, strictly as per the rules laid down by the system. Such an approach leads to a scenario where decentralization occurs with NO Single authority in control.
Outlook To Practical Implementation Of Blockchain:
BLOCKCHAIN, the term is derived from the practical scenario where records are stacked, which is, a linear chain-like pattern of blocks that are inter-linked. A Block can be defined as a unit containing crucial data which is orderly series of transactions, in the form of entries. Such blocks, replete with transactions’ info, are pre-declared public and everyone on such a network, can view these but then, such records cannot be tampered with or changed even for a comma. Next, with the creation of new blocks, the addition of such blocks is done to the chain which is similar to a paper ledger with multiple pages to record the future transactions. Such is the simplest definition of blockchain but then, owing to digital impact, such process is a bit complicated and it is extremely hard to alter the data contained inside these blocks, once such blocks are placed to the Blockchain network.
Thanks to cryptographic technique, the blockchains are digitally designed too tough to accomplish any change by anyone howsoever be learned or tech guru. For creating new blocks, such activity calls for in-depth computational activity which is regarded as mining and those into this (or miners) take the responsibility of ensuring the safety of such transactions and its verification and to organize these into blocks which are created recently and are added to Blockchain. The role of miners is pretty broader as they have to unleash new coins also, to the Blockchain framework, which is simply a kind of reward given to them, in return for their service diligence.
What Is Crypto-Currency:
To put it simply, such as a digital version of money and like money, such is put into use as a medium of exchange, within a given Blockchain arrangement comprising users. In banks, where transactions are verified through the banks’ stamp and executive’s signature, Blockchain transactions are tracked by digitally charged ledger which is secured through high-end computing and where, such transactions take place directly among users without needing any intermediary, since Blockchain is designed to be a peer-to-peer network.
In simple words, the term “Crypto” itself suggests premium cryptographic techniques that are implemented to secure the economic system in a bid to ensure that when new units of any crypto-currency are created, their validation and verification could be accomplished smoothly.
Besides, this is also worth mentioning that all forms of crypto-currencies are not designed to be mineable but still, a fistful of them, (like Bitcoin) relies upon the process of mining and hence such are in limited supply and a bit scanty in circulation. As mining is the way to create new units of such Bitcoins, risks of price-hike are not there which fiat currencies are under constant threat of and which are regulated by governmental measures.
What Is Bitcoin?
Bitcoin is actually the most primary and the most commonly used, widely prevalent and hence the most prominent form of Crypto-currency. The credit for its innovation goes to Satoshi Nakamoto who developed it in 2009, while he cherished the idea of creating a sophisticated payment framework, which would be digital, decentralized, secured and which would never be under command and control of any centralized authority, i.e. independent.
Even though scores of crypto-currencies are there with unique features and transactional mechanisms but still, Bitcoin enjoys more sheen than any other form of crypto-currency. Apart from this, it is worth mentioning that most of the crypto-currencies are not supported by their respective Blockchains, a few of crypto-currencies were designed to be operational over an already existing blockchain network but then, we have crypto-currencies which were created from the very basic digital systems.
As is a widely known fact, the Bitcoin is made operational on a protocol which is open-source and anyone can access it to examine and even to copy its source code. Across the world, scores of passionate developers put meaningful efforts towards its growth, security, profitability, and popularization.
Like any other crypto-currency, the supply of Bitcoin is limited, meaning that no more Bitcoins can be generated once the set target-limit is obtained. Even though, such a scenario differs from one project to another, but still, the maximum supply limit of Bitcoin is declared to be at 21 million units.
However, when it comes to knowing about the overall supply, this is a type of public declaration and on the creation of crypto-currency, the overall supply limit is defined. To know about the supply and Bitcoin’s latest price level, there are scores of prestigious portals for such purposes, such as ours Zuflo Inc.