The meaning of crypto currency and blockchain


As crypto currencies and blockchain technologies are becoming very popular these days, most youths and teenagers are queuing into it. Some of them have a glimpse of what the Crypto market hold’s for the future While some of them don’t… In this article you’re going you’re going to find out what Crypto currency and Blockchain is and what they hold for the future.

Let’s get started…

What Is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

KEY TAKEAWAYS

A cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.

Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.

Many experts believe that blockchain and related technology will disrupt many industries, including finance and law.

Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.

Understanding Cryptocurrencies

Cryptocurrenciesare systems that allow for the secure payments online which are denominated in terms of virtual “tokens,” which are represented by ledger entries internal to the system. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

BLOCKCHAIN IS MOST SIMPLY DEFINED AS A DECENTRALIZED, DISTRIBUTED LEDGER TECHNOLOGY THAT RECORDS THE PROVENANCE OF A DIGITAL ASSET.

What is Blockchain Technology?

Blockchain, sometimes referred to as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralization and cryptographic hashing.

A simple analogy for understanding blockchain technology is a Google Doc. When we create a document and share it with a group of people, the document is distributed instead of copied or transferred. This creates a decentralized distribution chain that gives everyone access to the document at the same time. No one is locked out awaiting changes from another party, while all modifications to the doc are being recorded in real-time, making changes completely transparent.

Of course, blockchain is more complicated than a Google Doc, but the analogy is apt because it illustrates three critical ideas of the technology:

BLOCKCHAIN EXPLAINED: A QUICK OVERVIEW

Digital assets are distributed instead of copied or transferred.

The asset is decentralized, allowing full real-time access.

A transparent ledger of changes preserves integrity of the document, which creates trust in the asset.

Blockchain is an especially promising and revolutionary technology because it helps reduce risk, stamps out fraud and brings transparency in a scaleable way for myriad uses.

How Blockchain is Revolutionizing Content Distribution

The revolutionary technology blockchain began with cryptocurrencies like bitcoin but has since expanded beyond the worlds of finance and banking. With a slew of new businesses and applications built on the technology, these industries now represent a mass decentralization that will soon impact the whole world. Blockchain helps distribute the cost of running a platform to its various participants, but rewards them for it in equal measure.

This decentralized model is already relevant for blockchain-based solutions such as cloud storage, payment processing, and cybersecurity. Increasingly, however, the technology also plays a key role in the content distribution arena.

To many, this is a better deal than the old ways, which saw control and profits stay in the hands of content hosting companies rather than the content creators themselves. Blockchain can significantly disrupt this imbalanced status quo, and seeks to put the power back in the hands those who create and consume content.

KEY TAKEAWAYS

Though blockchain technology began with cryptocurrencies, it has expanded into other industries and areas, including content distribution.

Flixxo is an example of a decentralized content distribution service in which users earn cryptocurrency tokens for sharing videos across the network.

The traditional model of content distribution tends to favor distributors over creators; blockchain technology may eventually level the playing field.

Turning the Tables

In return for security, hosting and distribution, users of services like YouTube allow the company to profit from their content. While YouTube stars can earn a healthy living from attracting viewers to their channel, there is no doubt that many of the profits don’t end up in their pockets. It might not seem like a bad deal to some, however. YouTube is an immensely popular destination on the internet, and gives creators a reliable, high-volume platform for free. They also handle the logistics required for creators to simply focus on what they do best.

Blockchain is turning the tables on this model. Flixxo, a decentralized content distribution platform, allows creators to offer their content to very specialized audiences, who pay cryptocurrency tokens to fund and enjoy their projects. To earn Flixxo tokens, participants in Flixxo simply make the videos on their computer available to the network, much like the peer-to-peer service BitTorrent. Whether these are the indie favorites of the filmmakers they’ve subscribed to or triple-A titles is irrelevant. This decentralized crowdfunding and hosting solution is offloading the costs of running the network on the users, but also making it more lucrative and rewarding to take part.

Blockchain-based solutions also have all essential security needs covered. Because of its networked nature, blockchain is impervious to hackers who can only reach a single node and not affect functionality for a whole network. Thanks to decentralized hosting and encryption, the system is entirely self-sustained.

I hope this article was informative to you ? … If yes please leave a like and a comment on the comment box… Thank you

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Published by Ernest I.

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