Blockchain technology – The Story Behind

Blockchain technology was first introduced to the world in 2008 by a man called Satoshi Nakamoto. The thing is, no one knows whether or not this is a real person and a real name. The enigma surrounding the creator of Blockchain has been existing for years, with people attempting to figure out who the real person behind Blockchain is. 

Blockchain technology

He introduced Blockchain as the next big thing in the virtual world, and he was right. One year later, the cryptocurrency Bitcoin would be born and would take over the cryptocurrency market for years to come. Bitcoin is based on Blockchain technology but newer, more evolved variants of the sort have surfaced.

Ethereum, for example, uses an improved version of Blockchain tech that gives it a pretty strong advantage over direct competitors ie. Bitcoin. But what’s the process behind this technology and why is it the perfect choice to base your cryptocurrency on?

How does it work?

Blockchain is rather specific. It’s a free ledger of sorts that anyone can access without any special privileges required. This, on the other hand, has the effect of turning every user into an admin (that can freely modify what’s happening). Keep in mind that there’s no way you can ruin a Blockchain network (at the moment at least) due to how it was conceived. So, everyone is an admin. So what? Well, this means that if one computer gets infected, the whole network will stand (because the info is available with all users).

On top of that, records of every single transaction ever get kept, without the possibility to modify them. This gives the entire network even more security, plus the evidence for transactions. Lastly, Blockchain transactions can’t happen unless both parties agree to the terms. This means that there’s no chance of fraud.

What does this technology mean for the world?

Extra security is always good for everyone and even banks are considering the Blockchain system. The whole process of integrating Blockchain into another business is a bit tricky, but not impossible. Just take a look at Ethereum’s creators – they took the basic Blockchain concept and improved upon it so their cryptocurrency is better than the rest.

Voting is also an interesting topic regarding Blockchain. In the future (if Blockchain voting integration happens), we’ll be seeing a world where voter fraud is almost non-existent (at least in theory). The blockchain is a wonderful piece of technology that has many uses (with many more to come).

The rise and fall of Bitcoin

YBitcoin Logoou’ve probably attempted to get in on the Bitcoin market at least once in your life, or at least thought of doing so. Unfortunately, you probably didn’t become a millionaire or you wouldn’t be reading this article on a finance advisers group website. Bitcoin has kickstarted the cryptocurrency world a couple of years back in the past (almost 10 years ago) and it was the leader of the market for a large portion of that time.

For a time, no other cryptocurrency was available (or there were but were experimental with no real value to them) and people were turning only towards Bitcoin. It was the defining factor of what it meant to own a cryptocurrency. Of course, it wasn’t worth a lot when it started (1 BTC was something meager and not really worth the investment). Most experts and pundits alike didn’t think that Bitcoin would ever become a globally accepted and sought after cryptocurrency, but, it was.

For a time. As time went by and people saw how powerful Bitcoin is, competitor cryptocurrencies slowly started appearing. At the start of this expansion, Bitcoin still ruled supreme, but not for long.

Soon, cryptocurrencies such as Ethereum would enter the market and, even though they were worth less than Bitcoin, a precedent was set. Cryptocurrency creators were constantly on the lookout for ways that would topple Bitcoin from the #1 spot (technology improvements, speed, etc.).

What exactly happened?

The Fall of Bitcoin

Bitcoin is still the go-2 cryptocurrency people think about when mentioning the topic, yet its value plummeted some time ago. If you take a look, it’s still worth almost $8k for a single Bitcoin, but this is far from its previous position of power. This can be attributed to many reasons:

  • Bitcoin as a whole didn’t change a lot over the years. The prime concept still remains and we could blame the unwillingness for change for the decline of its power.
  • Competitors are now more powerful than ever before and Ethereum is the direct competitor to Bitcoin. The value is a lot less than what Bitcoin offers, but the ease-of-access and flexibility on the market give Ethereum a fairly large advantage. More and more people are considering this, instead of Bitcoin.
  • Old technology is the bane of Bitcoin’s existence. You might have heard about Blockchain technology (which Ethereum uses in a slightly modified state). This technology gives its users the ability to complete payments and transfer money with lightning speed. Bitcoin, on the other hand, is relatively slow and not secure (but it still uses Blockchain; albeit an older variant). Just remember how much security you need to keep your Bitcoin wallet safe – not good.

Rise and fall of bitcoin

Final Words

Bitcoin can go two ways – up or down. Currently, it’s on a downward path but it might change in the future – if Bitcoin changes as well. Right now, however, it has a difficult obstacle that needs to be crossed if it is to return to its former glory.