Steemit Crypto Academy Contest / S6W1 - The Blockchain Revolution.
Hello friend, I am pleased to have you here today. How are you doing with your loved one? Today I am here to discuss Blockchain Revolution. Blockchain, which began in 2009 with a digital currency called Bitcoinhas brought a lot of positive changes to the world.
Explain in your own words how cryptocurrency has brought a revolution to the digital economy.
Cryptocurrency has brought a lot of revolution to the digital economy, as cryptocurrency is seen today as the most revolutionary and disruptive innovation. that we have in the world of finance today. Cryptocurrency has shown the potential for transforming our financial sectors and the digital economy, with notable advantages for countries with lower incomes in creating well-developed emerging markets.
As it stands, cryptocurrencies are a new form of digital money and a digital economy that are helping to remove and minimize the barriers to trade between different currencies, and they are also creating opportunities for market integration around the world. Beside that, cryptocurrencies have brought a revolution in the digital economy by providing the following benefits:
Provide blockchain technology.
It is through cryptocurrency that blockchain became so popular, and blockchain provides cross-border transactions among financial institutions. The benefits of cryptocurrency on the digital economy are also seen in the use of blockchain technology, as cryptocurrency is mostly digital money that is used to pay for transaction fees, gas fees, and the rest using blockchain technology.
Provide transparency
The benefits of cryptocurrencies in the digital economy are the transparency they provide. Our financial institution has no transparency in keeping our money, and thereby we have been seeing illegal financial assets with a clear audit about the transaction. Cryptocurrencies offer everyone a distributed ledger that keeps track of every transaction that occurs in a blockchain network.
Job creation and financial freedom
The revolution of the digital economy has brought about a lot of jobs around the world. With this revolution, millions of people are now earning their living from the trading of digital assets, and some are working as blockchain developers.
How is cryptocurrency a revolution, and what technology is used to run the process?
Cryptocurrency is a revolution due to how it has impacted our financial institutions and the world at large through its technology.
The technology used to run the cryptocurrency process is called "Blockchain technolgy." The most well-known cryptocurrency, known as Bitcoin, is the one for which blockchain technology as we know it was developed. As we all know, a cryptocurrency is a form of digital currency that is similar to the US dollar that controls the creation of new units of currency and employs cryptographic techniques to authenticate the movement of funds.
Participants can confirm transactions using this technology without the need for intermediaries or a central authority. Blockchain technology is a very powerful technology that is used to run the process of cryptocurrency or any digital asset.
What is the main purpose of blockchain technology, and can this technology work without an internet?
Sharing information among all parties who access it through an application is the main purpose of blockchain technology. Also, the creation of greater transparancy and the creation of digital assets known as cryptocurrency through a decentralized environment is the main purpose of blockchain technology.
In a blockchain technology, since the shared information is secured against alteration, any alteration would be noticed quickly. This is because blockchain is well safeguarded. Blockchain cannot work without the internet.
Blockchain technology requires the use of the Internet to work properly. When it has to do with things that are digital, there's a need for the use of the Internet, of which blockchain technology is not an offline technology but an online technology that requires the Internet to work properly.
Explain in your own words how blockchains generate cryptocurrency. Is all cryptocurrency based on the blockchain? Explain
Blockchains generate cryptocurrency through a process known as mining. The process of adding transactional details to the current digital or public ledger is known as "mining." Mining is what is used to refer to blockchain technology, and it's through mining that cryptocurrency is generated from a blockchain.
Mining includes generating the hash of a blockchain transaction, which is so difficult to formulate, thereby ensuring that a blockchain network is highly secure. Blockchain works in the following ways:
- When a user has requested a transaction
- The requested transactions will then be broadcast over a P2P network involving computer nodes.
- The transaction will then be validated on the network node.
- Thereafter, the transaction will be completed and a new block will be added to the existing blockchain.
Yes, all cryptocurrencies are based on the blockchain. Any cryptocurrency that is not based on the blockchain is regarded as not being a cryptocurrency. Although Central Bank Digital Currency (CBDC) is built on blockchain technology, it is not regarded as a cryptocurrency.
Explain some of the challenges faced when implementing blockchain technology.
When implementing blockchain technology, there are some challenges that are faced both during and after implementation.
Lack of Adoption:
Lack of adoption is one of the major challenges that we face when implementing blockchain technology. Without adoption, blockchain technology will remain ineffective and unscalable. There is a lot of discrimination by the government when it comes to the use of blockchain technology, which is part of what is affecting cryptocurrency.
Regulations:
Lack of regulations is another challenge that is faced when implementing blockchain technology. There is a lot of market manipulation and scammers going about scamming people via the use of blockchain and cryptocurrency, which leads to global discrimination. As a result of this, cryptocurrency has been getting lots of negative views from people all over the world.
High Energy Consumption:
The fact that Proof of Work, the most popular consensus algorithm, consumes a lot of energy is another cause for concern. This makes it difficult for ordinary users like you and i to access PoW networks, promotes the creation of massive mining pools, prevents decentralization by pressuring users to join large mining pools, and creates environmental issues.
Thank you for reading my post. I am inviting;
@yakspeace
@temitopef
@preye2
A well explained and well managed post. You have discussed every point with great research work and good approach.
You have a very good knowledge about the Blockchain technology and the Cryptocurrencies and you have proved that in this post.
Yes, you are very right here. The fluctuations in the prices of the cryptocurrencies are a very good source of earning for many of the crypto traders.
Thanks a lot for sharing your precious post with us and wishing you a very happy contest ahead.
I sincerely appreciate your time here.
It's always my pleasure.
I must commend that you have tried in tackling the questions been asked in this contest dear friend. Of a truth, blockchain technology is changing the way we do business and interact with each other in numerous ways, from digital identity management to supply chain management to global finance and banking system
Yes, given the fact that some manipulations and illegal practices have taken place through this systems, alot of countries are finding it hard to regulate the system.
Thanks for sharing friend, and goodluck in this contest. #steem-on.
I will appreciate if you equally engage on Mine
Thank you for contributing to my post sir.
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You have said a wonderful point that captured my heart which is Transparency. With transparency in the blockchain, people started embracing it. Yes the financial institutions just like the bank and other sectors have difficulty in transparency and that is why an individual can embezzle money without being caught.
But in the blockchain, everything is recorded and it can hardly be tampered with. You have done well, goodluck to you.
Hello @jasminemary
You mention the lack of adoption as one of the challenges, and in particular I think it has a lot to do with a lack of education in this area. I also think that Blockchain based platforms are not always that easy to use, that may keep some people away from adoption a bit, don't you think?