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The technology of blockchain has taken the world by storm in recent years. Everyone has been talking about it and why wouldn’t they? It has completely changed the way you used to do business. The methods of transactions and taxes have turned upside down. Plus, the practice of storing money and having complete control over it has certainly motivated people into finding out more about it. This is probably why you have clicked on this article. Well, we are not going to disappoint you.
In this article, we have mentioned everything you need to know about blockchain as a beginner. So, without much further ado, let’s get started!
The Basic Requirement
One of the most basic requirements of successful mining in the blockchain is that you must have a reliable and high-speed internet connection at all times along with an excellent computer. If the internet dies, you will not be able to receive or send any cryptocurrency. Similarly, the internet also helps you in storing said crypto in a digital wallet. Therefore, you cannot trust just any provider in delivering you a dependable connection.
You can, however, use the internet connection of companies like Xfinity since it is not only high speed but reliable as well. You can learn more about its state-of-the-art connectivity by visiting Comcast Xfinity en Español (for Latin Americans) to get in touch with its sales agent for your own internet plan.
The Operation of Blockchain: How it Works?
Essentially, blockchain lets a whole network of individuals share valuable data in a tamper-proof way. The data you share depends on the industry of blockchain and its purpose of it. Take, for instance, cryptocurrency-based blockchain. It basically helps store information on the transactions of crypto. This includes information about traders, recipients, and the amount of currency exchanged.
The Process of Blockchain
Blockchain is a system containing a record of transactions and blocks. Every block contains a hash of the cryptography of the block prior to it. In this way, it starts creating a chain. This hash takes the data from the block that came before it and then turns it into a string. The user or miner cannot predict which string is going to follow it. The process takes place in the following way:
- You request a transaction and the blockchain network authenticates it.
- To represent the transaction, a new block is created.
- Said block is sent to every node (participants).
- Every node proceeds to authenticate the new block.
- In exchange, nodes receive a reward.
- As a result, a new block is added to the blockchain.
- The update is then forwarded across the network.
- Hence, the transaction takes place.
Advantages and Disadvantages of Blockchain
The technology of blockchain has several pros and cons. Let’s take a look at some of them separately.
Advantages of Blockchain
The technology of blockchain gained massive popularity mainly due to its feature of decentralized currency. If you have a cryptocurrency, then you won’t need an intermediary (such as banks or the state) to authenticate it. This is why most people choose to keep it in order to have complete control over their assets.
The decentralized nature of blockchain makes it easy for the network participants to verify it and record it into the blockchain. This is why people trust this technology, as opposed to the traditional method of transactions.
Blockchain allows you to keep a check on your transactions by creating an irreversible trail of auditing. Because of this, you can easily keep a track of any changes that take place on the network.
Disadvantages of Blockchain
Speed and Performance
Since the technology of blockchain carries more operations than the traditional database, it is much slower. It first requires signature verification of transactions, and it requires every node to equally play its part in verifying and storing the transactions. As a result, the process takes up a lot of your time.
The entire process of the blockchain (mining) is not environmentally friendly. Several miners work together in order to earn cryptocurrency. What’s more, only one of them ends up receiving it. However, in the process, miners continue to use heavy computers that can pose dangers to the environment.
The technology of blockchain does not allow you to easily modify the data, once it is recorded. If you still want to change it, you will be required to rewrite the codes for every block. The whole process can turn out to be quite time-consuming and expensive.
Well, there you have it! This is everything you need to know about blockchain as a beginner. Now that you have a clear idea of what this technology is, how it works, and what are its potential advantages and disadvantages, we hope that you can make your decision on whether it is your cup of tea or not.