There has been a lot of discussion about Bitcoin and other cryptocurrencies. I admit it took me awhile to understand how blockchain could be monetized. Once I realized that people wanted to have a secure way to send data and stay anonymous, I realized why people put value in cryptocurrency. I can’t explain why the value gets as high as it does but the technology used has value for security reasons.
Imagine this, I can store any information in a secure unforgeable block of data. I can access this data anywhere I have internet access. I can put my money into a cryptocurrency and I can access that money anywhere in the world. All I need to access the money is my private key. I know I oversimplify the transaction process but for this post but I am keeping it as simple as possible.
What to know about blockchain.
- A blockchain is a permanent and unalterable ledger of transactions.
- If a block is altered all blocks after that block become invalid.
- Blockchain records are decentralized and distributed across the internet.
- Data in the blocks are encrypted using a public/private key.
- To see the data in a block a person needs both the private key and the public key.
Maybe this video will explain it better.
For a lighter side understanding of Crypto Currency John Olivier explains.
The Bright Monkey 