If anyone wishes to learn why bitcoin or any other crypto asset fluctuates, they need to know the basics of the underlying concepts of blockchain
If you have heard of bitcoin, you would know that it's a cryptocurrency. And when you hear about cryptocurrency, chances are you would know that it is a type of digital currency. It has no physical form or tangibility.
A similar term called cryptography is also read, heard and used when we try to look for information about bitcoin. It may sound a bit technical, but bitcoin and other digital assets run on blockchain technology powered by the notion of cryptography.
If anyone wishes to learn why bitcoin or any other crypto asset fluctuates, they need to know the basics of the underlying concepts of blockchain. In this blog, we will talk about the four concepts that are making blockchain and cryptocurrencies possible.
The four principles are:
Decentralized governance: Blockchain comprises two very simple and easy to understand terms, block and chain. A block is nothing but a set of transaction data. Then, multiple blocks of transaction data are linked sequentially to form a chain. Imagine this to be a physical ledger where the students' records are registered, and one page is linked to another page to create an entire ledger book.
Blockchain works on the basic concept of 'decentralized governance'. Wait, what? Unlike a bank, which has the sole authority to maintain and generate the account statement, the blockchain doesn't have a head, party, country, or group as the authority. It is public, and the governance is distributed. Hence the basic concept of blockchain is that it is decentralized.
Continue reading: https://www.entrepreneur.com/article/429349
If you have heard of bitcoin, you would know that it's a cryptocurrency. And when you hear about cryptocurrency, chances are you would know that it is a type of digital currency. It has no physical form or tangibility.
A similar term called cryptography is also read, heard and used when we try to look for information about bitcoin. It may sound a bit technical, but bitcoin and other digital assets run on blockchain technology powered by the notion of cryptography.
If anyone wishes to learn why bitcoin or any other crypto asset fluctuates, they need to know the basics of the underlying concepts of blockchain. In this blog, we will talk about the four concepts that are making blockchain and cryptocurrencies possible.
The four principles are:
Decentralized governance: Blockchain comprises two very simple and easy to understand terms, block and chain. A block is nothing but a set of transaction data. Then, multiple blocks of transaction data are linked sequentially to form a chain. Imagine this to be a physical ledger where the students' records are registered, and one page is linked to another page to create an entire ledger book.
Blockchain works on the basic concept of 'decentralized governance'. Wait, what? Unlike a bank, which has the sole authority to maintain and generate the account statement, the blockchain doesn't have a head, party, country, or group as the authority. It is public, and the governance is distributed. Hence the basic concept of blockchain is that it is decentralized.
Continue reading: https://www.entrepreneur.com/article/429349
