You may have heard of blockchain – a new technology that is taking the world by storm. What makes it so powerful and innovative? This article will provide you with a beginner’s blockchain guide to help understand what it is all about.
There is no doubt: blockchain is an ingenious invention that is changing the world and the potentials of the internet as we know it. It is a mysterious concept made by a group of people known by the pseudonym Satoshi Nakamoto. After the initial technology was launched, it has come a long way and is evolving into something bigger, bolder, and greater at an exponential rate. If you have been wondering what it is and how it works, you’ve found the right place.
We are here to give you a blockchain guide for beginners that will ensure you get a hold of what is going on at the cyber world’s frontiers. From investors to music listeners, daily shoppers, and gamers — blockchain is useful for almost everybody involved in the web. What blockchain has to offer concerning general data security and the immunity from hacking attacks. This is intriguing for users and developers alike. With no further ado, let’s get started and dive into our blockchain quick guide!
The Complete Blockchain Guide for Beginners
Originally, the blockchain technology was intended to be used exclusively for digital currencies such as Bitcoin. Most blockchain dummy guides will tell you that this is all it can be useful for. However, the tech community of our times, being handy as they are, found a whole lot of other potential applications for the technology.
To get a basic idea, blockchain is an endless list of data sets. These are allocated to and managed by a wide number of computers not owned by one single entity. Every block of information is secured and interlinked between all units by cryptographic principles. This is where the “chain” gets its meaning. It sounds simple enough, but you may find yourself wondering why such a system is raved about by many people. If there is one big breakthrough that blockchain allows for, it is a decentralized system of information.
Blockchain has no single authority that can manipulate it in any way, shape, or form. This is so because it is a data chain shared by a wide network of computers, and the info is accessible to each and everyone involved. This way, blockchain is completely transparent and safe from any fraud. Everybody can see each and every action, and thus, everyone is directly accountable for their operations.
Another fantastic benefit of blockchain technology is that it carries no transaction costs. When one party initiates the moving of a data block, it is almost instantly verified by a large number of computers all around the web.
Further on, the unit of data is added to the main chain stored on millions of devices. This means that each data set has a unique transaction history. Falsifying one of them would mean that it would have to be tampered with on millions of devices, which is pretty much impossible. This precise model of information movement is applied when dealing with cryptocurrencies such as Bitcoin. At this point of our blockchain quick start guide, you might realize how it could be used in many other ways, too.
This immensely upgraded security that blockchain brings to the table when it comes to exchanging data packets has a big potential for daily online activities. For instance, online gaming is known to have security risks associated with it, as gamers make for ideal hacking targets. The improvements could secure not only the essential data packets that run from a gaming computer to an online server but also in-game purchases of various kinds.
These spending habits have seen a great rise in popularity recently. Gamers are incentivized to unlock new items and skills via in-app purchases, which they happily do. Bitcoin could make this completely hacking proof – thereby eliminating the number one security liability in online gaming.
How could blockchain affect daily activities used by the majority of the population? Take, for example, an airline company. When one wants to buy a flight ticket online, the credit card company often takes a piece for merely processing the transaction. If blockchain technology was employed, bank fees would be a thing of the past. This applies to almost every industry that uses credit card transactions. Following our example, a flight ticket could be turned into a blockchain data unit.
That would render it unique and safe from any falsification. It would also have the benefit of keeping flight tickets, the busyness of certain routes, and other pertinent info in an easily accessible system, open to anybody. The most significant potential advantage of the blockchain system is that it keeps transactions free. It could eventually replace all business models that rely on charging money for a transaction. It may sound trivial, but considering how many times one uses a credit card in stores, as well as online stores, the numbers add up quickly.
If our guide to blockchain has not surprised you yet, check this out. We have established that blockchain transactions are free – that is all nice and good. Where this really makes a difference is for making tiny deals. When we speak about cutting out intermediaries for transactions, it does not only stop at bank fees. By being able to charge, say 1/100th of a cent for a given service, the technology can apply to things like reading articles and streaming music. Why pay New York Times a monthly subscription fee when you could be paying a minuscule amount for every review you read directly?
In another pertinent example, let’s take a streaming service like Spotify. If you have been up to date about what is happening in the music industry, streaming is taking over the game. Such a monopoly allows streaming services like Apple Music and Spotify to allocate money how they want, adhering to no moral standards.
There has been a lot of criticism recently on the low rates that Spotify pays musicians per stream, whereas the company makes ungodly amounts for itself. Blockchain could make selling recorded music profitable again, putting money in the pockets of those who truly deserve it. Theoretically, songs could be stored in online data clouds that are part of the blockchain in itself.
Every music stream would then become a direct transaction from the listener to the artist. The same can apply to ebooks, making giants like Amazon a thing of the past. Authors could get substantial amounts of money for their hard work, not mere royalties with sums decided by industry enterprises. If blockchain was implemented on a full scale, it would make most financial institutions obsolete. After all, their services are mostly built on transaction fees for facilitating the process. Such a new world would have no more need for bank accounts; stock changes would operate differently, as well as loans and insurance contracts.
All in all, it would allow for industry gatekeepers to be put on the sidelines, making payments for various services fast, safe, and efficient. If there is one thing to take away from this blockchain guide, it is these potentially world-changing benefits that the technology has to offer. So how does one get into making these changes a reality? That is up to developers.
The Blockchain Guide for Developers
If blockchain technology is to become a practical aspect of our day-to-day lives, a working infrastructure for it must be created. In this part of our blockchain guide, the developer aspects and requirements will be outlined. Essentially, there are two types of blockchain devs: the core blockchain developer and the blockchain software developer. A core blockchain developer is responsible for creating the architecture for a new blockchain system and ensuring its security.
The blockchain software developer builds upon a designed architecture to create a functioning app, which the public can use. Any blockchain developer has to find ways of producing innovative solutions to whatever problems have to be faced in the areas of design, testing, analysis, development, and debugging. It must be noted that while IT development knowledge is crucial, the development of blockchains requires a specialized, quite particular set of skills.
As blockchain is an innovative technology that is based on out-of-the-box thinking, it requires equivalently geared minds to work on it successfully. Anyone who wants to get into blockchain development should have a good grounding in its use for cryptocurrencies. That is where the technology is rooted in. However, making it work for other services is still in its primacy, and there are many issues to find solutions to. Space Dogs and Cryptozombies are courses that teach developers Solidity Code use, which is essential for anyone eager to get into development.
The Blockchain Investors Guide
Blockchain technology looks to be promising for its developers, and the same applies to investors. According to sources, the technology is going to blow up in the coming years. So how should one go about making money from it? Firstly, learning about how the practical aspects of blockchain work in alternative uses other than for cryptocurrencies will be of benefit. Online blockchain wallet guides and blockchain spending guides should be good starting points to begin your investment research.
As an investor, your best bet will be to invest in startups who are exploiting blockchain technology. It should be noted that it is less risky than cryptocurrency. There are no high fluctuations involved, and opposed to various small-level cryptocurrencies that tend to run out of steam quickly, blockchain is just starting to take off.
Your main job will be to find startups who look promising, so your investment is well placed. A thing to look out for is that a given company deals with bitcoin’s implementations into as many services as possible. Some examples who are doing just that, attracting much attention, would be BTCS, Space Corporation, and Global Arena Holding. These surely could be good for investment, but you could try to look for others operating on the same principles.
An alternative investment option is Hive Blockchain Technologies. It is involved in building and developing a usable blockchain infrastructure that is universally applicable – exactly what you would want as an investor. That said, their stocks may fluctuate, but their aspirations are promising long-term.
Another company to keep an eye on is BAT, Basic Attention Token. The token that was built by BAT is centered around the working of the Ethereum network. The latter operates in the Brave browser but is quickly expanding to include other variants.
Their ambitions are quite broad: to eliminate all types of fraud that is possible to happen between users, publishers, and advertisers. These are some good blockchain startup investment options, but with a little time and effort, some further digging may find you many more interesting options. The technology is fresh, and the market is driven; thus, new startups may appear daily!
We hope that our simple guide to blockchain technology helped get an understanding of what it can achieve. With adequate development, we may be looking at something as significant and groundbreaking as the internet itself. Blockchain has the potential to eliminate all kinds of intermediate companies and save regular users a lot of money by doing that. Moreover, it has incredible safety standards and operates rapidly. Is there something that you may dislike about it?
If you have any comments, insights, or blockchain guide books to share, please leave them in the section below. We are excited to see what you think!
Chris Delgado is a Junior Copywriter with high ambitions and an undivided passion for cybersecurity and cryptocurrency. He is currently studying to get his degree, and his future prospects revolve around crypto trading and financial writing. In his spare time, he is a dedicated volunteer at a local cafeteria for homeless people.