Controlling Your Golden Nuggets
Howdy partners, it’s time to saddle up and take a ride into the Wild West of Cryptown once again. But don’t fret! Because you have the CryptoBanditz posse here ready to help make sure you have a smooth ride off into the sunset.
You’ve probably heard this many times, what came first, the chicken or the egg? It’s a question that has puzzled even the most level headed gunslingers due to its philosophical complexities. Any lesser posse may have fumbled and folded at the mere sight of such a similar dilemma in this space, but here at CryptoBanditz, we’re not your average posse.
The chicken and egg question is similar to the questions about the differences between the blockchain and bitcoin, but not as identical as you’d think. With the chicken and the egg, it’s a matter of debate as to what came first as we don’t have any first-hand accounts. With bitcoin and the blockchain, one could not exist without the other and we know we also have first-hand accounts. So can you guess what came first?
If you said Bitcoin then, unfortunately, you are wrong, but I can guarantee you’re not the only gunslinger who guessed incorrectly. Bitcoin is the showpiece of the crypto space, so when bitcoin moves to the upside it takes all other ALT’s in the opposite direction, so of course, it gets the glory and so it should. However, the real party piece is the technology that makes bitcoin possible, the trustless, decentralised, peer-to-peer system known as the blockchain.
For the creation of bitcoin (BTC) to be created, blockchain technology had to be invented first, and we can thank the great Satoshi Nakamoto for both of these. The two were fatefully intertwined from their inception, but the key difference is that bitcoin needs the blockchain to operate, so if the blockchain fails (which is an impossible task) then bitcoin will too. But, if bitcoin fails, the blockchain will still exist as it has many uses other than just the creation of cryptocurrencies.
Think of it as a games console, if one game stops working, the games console is still useful as you can play other games on it and even do other things such as surf the internet or watch movies. In this case, the console is the blockchain and bitcoin is just the best game ever made. Even if your favourite game (bitcoin) is no longer current or useful, the console (blockchain) still has a use as others will develop new games or even use the technology to create a new console (forked). This is what’s happening with blockchain technology as we speak, developers are finding new uses for the blockchain by developing decentralised apps (DApps) or smart contracts on the blockchain.
What is a blockchain?
A blockchain is an encoded digital ledger that stored on multiple computers in a public or private network. It comprises data records, known as “blocks”. These blocks of data are collected and connected into a chain, and they cannot be changed or deleted by a single actor; instead, they are verified and managed using automation and shared governance protocols.
The bitcoin data records are financial transactions on the blockchain and when a transaction is received onto the blockchain, it is turned into a hash value (numeric value of a fixed length that uniquely identifies data) to increase anonymity. Each block is built on the previous one and has included in it a record of every other block, making it impossible to go back and change any values (double spending). The blockchain technology is very secure, as multiple users run it on various computers. There’s no single point of failure, further increasing the security credentials of the blockchain.
So, the blockchain creates or collects a record of whatever we enter into it. In bitcoin’s case, the blockchain is recording financial transactions, and some of the benefits of using bitcoin such as anonymity and control over your assets is a result of using this system.
Other uses for the blockchain include:
The blockchain is transparent as everyone can see past data inputs and transactions. It is a peer-to-peer network, so when we stop voting the wild wild west way and start voting using this system, it should eliminate voter fraud. Russia, for example, is using the blockchain to allow its people to vote for changes to the country’s constitution.
Supply chain management
We can trace goods by entering the movement of assets onto a blockchain which will allow companies and customers to track the entire journey of their products. For example, the global delivery of a vaccine for Covid-19, 20% to 30% could be lost during transit and storage. By using the blockchain properly, this can reduce lost of shipment and can be tracked to reach higher-risk countries first for the vaccines ensuring equality in the distribution.
Improved data management
As the blockchain turns data into hash values, governments and other agencies can use this system to create a more secure and tamper-proof way of holding sensitive personal data. The world economic forum recently released the Blockchain Deployment Toolkit, which is designed to help organisations utilise blockchain technology to prepare for the fourth industrial revolution.
In all truth, the potential uses for the blockchain are endless. From recording the authenticity of artwork to decentralised data storage, the blockchain has the potential to disrupt every primary industry on the planet. Understanding it today will give you an advantage in tomorrow’s world as the benefits of the blockchain are boundless!