- What is blockchain?
In simple terms, blockchain is a shared, immutable ledger which facilitates the process of recording transactions. It also keeps track of assets in a business network. An asset can be tangible like a house, a car, cash or land or it can be intangible like intellectual property, patents, copyrights etc.
This means almost anything of value can be tracked and traded on a blockchain reducing risk and cost involved for all stakeholders. - How does it work?
Think of a blockchain as a network which hold all the information for all the parties involved in a transaction. In a general scenario, this information can be really challenging to validate and may need a lot of paperwork from different stakeholder’s policies. - Real world use cases
Social Media: Decentralization of Social Network. No governing body to block or shut down creators on social media. Steemit like medium
Biggest use can be Supply chain:the problem to be solved is the authenticity of products. Hard to do it in current environment. Examples are VeChain which is already starting to pick up with major partnerships in China and France
Art industry: NFT is the answer for artists as they can monetize it through selling digital art.
Cryptocurrency: The hyped market which we all have been hearing about since start of this year. Yes, you heard it right. Cryptocurrencies are a use case of Blockchain technology. Blockchain is the underlying technology for most of the cryptocurrencies like Bitcoin.
4.How crypto works
Cryptocurrency is a medium of exchange just like regular FIAT currencies like US Dollar, British Sterling Pounds, Chinese Yuan just to name a few. They are completely decentralized unlike Fiat currencies. There are no banks or middlemen to take their cut for any transaction. Blockchain solves the problem of inflation as money printed by banks every year brings the value of fiat currency down. In cryptocurrencies this is solved by having a limited supply to these currencies which makes their value go up in the market.
People also believe in cryptocurrencies as they are more transparent and cost less than other traditional methods.
