Showing posts with label Cryptocurrencies. Show all posts
Showing posts with label Cryptocurrencies. Show all posts

Sunday

What is Blockchain and how does it work?

Posted By: Arin Dey - February 28, 2021
Blockchain and Cryptocurrencies are trending topics across social media and the web. Even people who have never heard of cryptocurrency, let alone understand how it works, are talking about them. And for weeks now, some of my colleagues and friends have been bugging me to explain these terms. Everyone, it seems, is eager to learn more and so I’ve penned this explainer on blockchain technology -- using almost no technical terms for those looking to attain a more general understanding of what Blockchain is and how it works.

What is Blockchain and how does it work?


Instead of finding solutions or use-cases of Blockchain technology, let us first understand the problem that Blockchain can solve. 

Let us imagine a situation: Dave is your friend. He is travelling overseas, and on the fifth day of his vacation, he calls you and says, “I’ve been robbed. Could you please send me $2,000 so I can buy a plane ticket home?”

As a friend, you assess the situation and agree to send the amount requested. So, you reply, “Sending right away, Dave.”

You may call your bank and raise a request, “Please transfer $2,000 from my account to Dave’s account.”

Your account manager replies, “Yes, I will do that now.”

Your account manager opens your bank register, checks your account balance to see if you have enough balance to transfer $2,000 to Dave. You have plenty and, thus, he makes an entry in the register like the following:

February 28, 2021

#--------------- Transferred------------ $2,000------------- Dave


You may call Dave and tell him, “I’ve transferred the money. You may withdraw the amount $2,000 now from your bank.”

In this example, you and Dave both trusted the bank to manage and transfer your money. In this process, there was no hard copy of bills used to transfer the money, just an entry in a register. that neither you nor Dave controls or owns.

This is the “problem” of the current system: we depend on individual third-parties to establish trust between ourselves. But, you might say, we’ve been depending on middlemen to establish between different parties for ages. Why is it a problem?

The problem here is that they are one, and only one, authority here. Anytime that single point of contact may go corrupt without your knowledge. Imagine these situations:
The register in which the transaction was logged becomes corrupted.
The bank mistakenly writes $4,000 on the register instead of $2,000.

So, with that in mind, let’s think out of the box now! Is there a way to maintain the register amongst ourselves instead of someone else doing it for us? Or, put another way, Is it possible to find a system where the transfer of money will happen without needing a bank? is the answer to this question. It is a method to maintain that register among ourselves instead of depending on a bank or another third party to do it for us.

Thursday

Facebook Launches Libra Coin – A New Digital Currency

Posted By: Arin Dey - July 11, 2019
Technology has improved the world around us, it is easy to send text, pictures and documents but why not money. What if we made the money truly global, stable, and secure. What if everyone has invited to the Global economy with access to the same financial opportunities.

Facebook Launches Libra Coin – A New Digital Currency

This thought laid a pavement for Introducing LIBRA a new global currency designed for the digital world, backed by the belief that money should be fast for everyone from any corner of the world.
Its powered by Blockchain, making it safe, accessible, no matter who you are and where you’re from. Let's have a look at the below infographic from MrBTC to know more about this.


Libra - Cryptocurrency By Facebook

Friday

How Blockchain Work [Infographic]

Posted By: Arin Dey - March 30, 2018
Blockchain is a type of data structure that identifies and tracks transactions digitally and shares this information across a distributed network of computers, creating in a sense a distributed trust network. The distributed ledger technology offered by blockchain provides a transparent and secure means for tracking the ownership and transfer.


 Below is a simple flow diagram that shows how blockchain works.

Source: Bitcoin: A Peer-To-Peer Electronic Cash Systems

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