What is blockchain?

Τι είναι το blockchain και τι είναι η τεχνολογία blockchain γενικότερα;

What is blockchain?

Hi, I’m John and I’m the founder of Puppy Coin and Kryptohodlers and at WEWE Success we want to help you understand all about crypto and this new technology.

But before you start reading my article you should know that I am not a financial advisor. If you’re looking for financial advice, you should talk to a financial advisor about investing, crypto, and whatever else you want.

I think many of you have discussed or been interested in crypto, cryptocurrencies, and some big sites like Coinmarketcap.com.

Coinmarketcap.com is one of the biggest sites for Binance exchange and many cryptocurrencies have their blockchain. Some of them are the following:

  1. Bitcoin,
  2. Ethereum
  3. BNB
  4. Cardano
  5. Solana
  6. XRP
  7. Polkadot

All of the above have their blockchain, but many of them are based on the blockchain of other cryptocurrencies, such as Ethereum, and you can create your token on the Ethereum blockchain or the Binance Smart Chain blockchain.

As I told you before, I have created my token, cryptocurrency, Puppy Coin on the BNB blockchain running the Ethereum Virtual Machine (EVM).

It is compatible with many other blockchains that have the smart contract feature of the Ethereum virtual machine.

But let’s get back to basics.

What is blockchain and what is blockchain technology in general?

blockchain
What is blockchain technology?

 

 

 

 

 

 

 

 

 

 

 

 

 

Blockchain is a distributed ledger, a database shared among the nodes of a computer network.

This means that we don’t have a central computer like a banking system that has loans, assets, and who owes who, and we have to evaluate that computer by providing our information.

For example, we have to do KYC (Know Your Customers) and we have to prove our identity to bank with these institutions that are centralized.

Some of these institutions are HSBC, Barclays, and all the other banks you know that have been around the world since the old days of functional banking.

Decentralized databases, blockchain technology, and blockchain system store information in digital form.

This means that each note stores system-wide information and must be in agreement with the other notes for the transaction to go through.

We need some notation to say that a transaction is legitimate to proceed with all transactions.

This system is permissionless, we don’t need to prove our identity.

We only need to have our wallet or be one of these notes.

We need a crypto wallet, as I told you before, like the MetaMask Wallet that doesn’t need any proof of who we are.

MetaMask doesn’t require KYC and anyone can use as many wallets as they want

I have my wallet on my mobile phone or computer, you can download MetaMask Wallet or any other wallet like Trust Wallet.

 

When did blockchain start?

The blockchain started as far back as 1991 as a research project and cryptography technology has made huge progress in the past 2 decades, but Bitcoin first took place and started as a widespread application in 2009, by a crypto guy, a cryptographer who no one knows who he is It’s true.

His name is Satoshi Nakamoto, he lived in the San Francisco Bay Area and created the first 100% decentralized blockchain-based currency, Bitcoin.

I think today you all know what Bitcoin is.

Also, Bitcoin was the first successful decentralized currency to be listed.

It is the money itself, it has store value, but it has a big drawback: it cannot be used as a cryptocurrency in everyday life.

You can’t pay with Bitcoin today because blockchain and Bitcoin are too slow, so we need something faster, like Visa and Vitalik Buttern had the idea of ​​Ethereum in 2013 to introduce some of the smart contracts that are decentralized applications, DApps, and Web 3.0 technology.

Some key points about blockchain technology

Can I create my blockchain?

Anyone can create their blockchain, so the question is can I create my blockchain?

The answer is yes, but you need to have at least some computer knowledge.

What is a compute node?

A computer node is a computer server running on Linux technology and you must have special software to get validation for other notes.

Everyone can run their node and could connect to everyone else with an algorithm.

The most common that Bitcoin and Ethereum use today is Proof of work, but the most effective is Proof of stake.

These algorithms are like a computer program that agrees with everyone else, that this transaction is legitimate, that we have the funds, and that we can proceed with transactions on this blockchain.

Transparency

A big advantage of blockchain technology is transparency.

Blockchain technology offers tremendous transparency to blockchain explorers.

Bitcoin has its own blockchain explorer, Ethereum has its own blockchain explorer, ETHer scan.
Binance Smart Chain has its blockchain explorer, Binance Smart Scan or BSC scan, and many other cryptocurrencies have their explorers where you can see every previous exchange that happened in the past.

It’s a ledger that shows what’s being sent to whom, at what address and time, and what other exchanges were made, like at Nike, a cryptocurrency for PancakeSwap which is a decentralized exchange.

Also you can buy some Puppy Coin for PancakeSwap.

Is blockchain secure?

To date, we have not had any problems with blockchain hacking.

We had problems with another layer 2 contracts and smart contracts because the code wasn’t that good, it wasn’t well written or well tested and hackers took advantage to steal some coins, some Ethereum, some Bitcoins, and other coins that people had.

But, in general, Bitcoin is a safe technology because you need to spend at least 51% of Eth gas fees to attack the Ethereum blockchain.

We have to spend a huge amount of money, energy, time, and resources to hack the Ethereum blockchain and make everything else legal and rule the whole system.

This means we need a huge amount of money which is not sustainable to hack the entire blockchain.

What are the applications of blockchain?

How are blockchains used today?

1 Provision of banking services to non-banks

Some of the best applications of blockchain technology are banking for the unbanked.

Many people do not have a bank account, even here in Greece where we live today many cannot open a bank account for many reasons.

Many people do not have a bank account, even here in Greece where we live today many cannot open a bank account for many reasons.

This has many applications in the economy, especially in third countries such as Africa or Latin America.

Unbanked people are almost a majority there rather than a minority they are in Europe.

Blockchain systems can provide payments and banking services to the unbanked.

Take Defi system, PancakeSwap, MetaMask Wallet for example.

You can make payments with cryptocurrencies or even the private exchanges that are centralized exchanges like Binance can trade with you by providing KYC and they also give you a BNB based cash card.

But you can still have banking services, they can provide banking services to you.

Transaction fees are lower than bank fees in some areas and transaction speed is better than some other banks.

For example, if you want to send money abroad, it would take me 1-2 days to do it, but with the Ethereum blockchain I could have sent the money in 10-15 seconds, it depends on how much the gas fees are and how much congestion that the network has.

One of the best uses of blockchain today, aside from Defi, is NFTs.

2 Secure your online identity

You can build an NFT or use NFT Real Estate instead of having actual property ownership and documents to own your home in NFT and sell the NFT.

The use will spread to daily use, such as for tipping activities, buying small things, etc.

Also, big use of blockchain technology is in the healthcare system, that hospital records could help there for transparency and privacy.

And property records can be kept there, for example, ID, and driver’s license and you won’t need to carry your papers, you will only need to have a crypto wallet or an NFT wallet.

What do you think about blockchain technology?

Will our lives be different in 10 years because of blockchain?

Do you own cryptocurrencies like Ethereum or Bitcoin?

Would you ever invest in any of these?

Contact me through this Contact Form. I will be very happy to answer you and if it is easy to help you with what you need for WEWE Success.