With the world evolving at an incredibly fast pace and technology leading the charge, people are adopting the usage of these new systems to make life easier. Some technology is used profusely by millions while others are disregarded and forgotten to time. We know from historical data that those that were revolutionary in nature have made a really huge impact on our lives. More than half the people in the world are internet users and 3.81 billion people use social media as part of their daily routines. You couldn’t probably imagine life without social media or the internet right now but few years back, such a world did exist.
It’s a very fascinating thought that technology can change our lifestyle to such an extent that we begin to revolve our lives around it. But such an innovation doesn’t come around often. In the case of our main topic of the day; Blockchain, is being heralded as the next internet. Can you imagine that? If you find yourself asking the question, what is blockchain? Don’t fret and just click that hyperlink. In this article, we will be going through the basics of Blockchain and some important terms that come with it so you know exactly how Blockchain is going to revolutionize the whole world.
To get us started, lets look at the definition of Blockchain and 10 common terms that are normally associated with the newfound technology.
A digital ledger where computers in different places can store information in permanent form which gets synchronized. The activity done on blockchain cannot be edited or modified and it can only be added to making it very secure. Have some questions about Blockchain that need answering? Click THIS BUTTON.
Encryption refers to the practices that aim at making ciphertexts from plaintexts. Plaintexts are the texts that can be read and understood by third parties while ciphertexts are scrambled texts that cannot be understood by any third parties making encryption a very useful feature in modern day security.
A cryptocurrency is a type of currency which uses digital files as money. Cryptocurrency use decentralized control which means they can’t be controlled by one entity.
In case you have been living under a rock for the past 10 years, you will not be scratching your head asking this question; What is Bitcoin? If you are one of those people, we will just briefly explain it. Bitcoin is the first cryptocurrency to ever be created and the first platform to use blockchain technology.
Ethereum is a decentralized open source blockchain featuring smart contract functionality. Ether is the native cryptocurrency token of the Ethereum platform. It is the second-largest cryptocurrency by market capitalization, behind Bitcoin.
Cryptocurrency mining is the procedure in which transactions between parties are verified and added to the blockchain public ledger. By mining, you can earn cryptocurrency without having to put down money for it. Side note, it costs a lot of resources so DYOR (Do your own research) before getting into it.
A node is a computer that connects to a cryptocurrency network. The node supports the network through validation and relaying transactions. All miners are nodes but not all nodes are miners. Blockchain fact right there.
Tokens are units of value that can be acquired through blockchain. They are also used to acquire goods and services. Want to see a token in action? Try buying one and growing your portfolio on Tyslin Exchange.
A hash is a function that transforms an input of letters and numbers into an encrypted output of a fixed length. A hash is created using an algorithm and is vital to blockchain management in cryptocurrency.
Not talking about the exact utensil here but more about the shape of the tool. A fork happens when a blockchain diverges into two paths forward or there is a change in protocol. This one is a bit tricky so look up the example of Ethereum & Ethereum Classic.
So, there you have it: the top 10 most important terms when discussing Blockchain. If you are interested in knowing more about this technology, you will have some place to get started. In the meantime, why not look at some interesting applications of Blockchain?