Crypto Currency for dummies - What is it? What is the blockchain?

satchmo (64)in #blockchain • 7 years ago

So what the heck is a crypto currency and more importantly what is a blockchain?

Well first off what is the blockchain - the blockchain is a tool to transfer some sort of value to anyone, anywhere at any times. It is hyper encrypted and offers a new level of security to the cyber age. Each added block alters the state of the previous block, therefore rendering brute force attempts at hacking next to impossible.

So what is a crypto currency?

No its not some nefarious tool for nefarious dealings, at least thats not the intent. It is a new method for transferring value.

A common misconception is that it was bitcoin and then the blockchain. Bitcoin was just the first application of blockchain for the purpose of facilitating transactions.

Simply put, each crypto currency is also generated as a reward to those contributing to the sustainability of the respective blockchains through computing power. This is where crypto mining comes in. This level of instant, effortless, accessability requires massive computing power, and understandably so.

So what does the future hold then? I dont know but at some point we need to start questioning the sustainability of mining as currently to profit from mining the mainstream coins one needs a bitcoin mine the size of a server farm.