Steemit Crypto Academy Contest / S6W1 - The Blockchain Revolution
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Hello everyone, how are you doing, I hope everyone is doing great, I welcome you to week 1 season 6 of the engagement challenge, and here I shall be participating in the contest discussion of "The Blockchain Revolution".
On this topic, I shall discuss the revolution of blockchain, how cryptocurrency uses blockchain technology, and as well its involvement in the financial world, Happy Reading!!
Cryptocurrency is not a new conversation in the financial realm any longer, this technology has been in the digital economy ever since 2009, and we have seen a couple of financial institutions acknowledging this adoption and as well the cryptocurrency is well dominating the financial market, where we have seen a total capitalization of $832.40B, where Bitcoin is dominating most of the volume with 38% followed by Ethereum.
Cryptocurrency is a digital currency that is used equally like any money in the financial realm, this currency does everything money can do, and it has more knowledge accompanying it, it can be used for buying and selling, it can be used to secure bids, and many more.
The revolution this has brought to the financial world is not hearsay, this has brought lots of independence to most companies and users, it is decentralized, many projects have come into existence ever since the introduction, and there has been more economic dependence on a lot of users all around the world.
For example, let's take social media and steemit for example, these are digital channels where people interact, but social media are centralized and censored around its founders, whereby they capitalized their platform and generate money with it, but here is a decentralized platform like steemit which uses the digital currency, whereby it is not only decentralized, it also gives it users the chance of generating income by blogging on its platform, this is a large revolutionary between the social media and the economic world, as many wouldn't have thought there could be a chance where this could happen, but through cryptocurrency revolution, this has been able to come to pass.
Cryptocurrency is the future, despite the big shakes in recent days, the digital economy still stands firm, this is telling us there are still many more ideas and opportunities yet to pour into this technology, everyone is adopting this technology, and it's fast approaching the globe as well, so its no doubt that there has been a great revolution in the digital economy ever since the adoption of cryptocurrency.
When we said Revolution, it means changes, Revolution is a constant change or a gradual change that is happening in an institution or a human world on a particular aspect.
Cryptocurrency is a revolution to the world economy in the sense that Digital currency is spreading fast to all parts of the world, and this has proven more comfortability to all users at large.
It is revolutionizing in the sense that it permits interoperability, which means it is operable with any platform, unlike the financial world where there was a limit and users in different countries may not have the chance to make transactions with each other simply because there is no interoperation between them, but cryptocurrency has bridged this gap, it permits you to send to anyone in any part of the world, and this is done due to its technology that permits everyone in the end part of the world to be able to transact to each other using this same technology.
Mode of Comfort: This is a big revolution as well, it brings comfort and safety, with cryptocurrency, your asset is in your power, and the technology is decentralized meaning you have full control of power over your money, and this is accessible in a way that the technology is always active 24/7, you can choose to transact at any given time and any give day from the corner of your home, and this is something the commercial economy lack, as they are controlling your assets and putting limitations on the amount of money you could own or transacts at a given time.
Cryptocurrency has bridged a lot of gaps between the rich and the poor, it has become a safety for the masses, and it has revolutionized by giving everyone the power to own as many assets as they had wished, and this is on total decentralization, this is a huge success to many individuals, and this is a great revolution in the financial world today.
Blockchain Technology - what makes cryptocurrency possible is its technology, the blockchain technology is a digital database that allows the transaction of digital assets, this technology stores its transaction on the open ledger where it is transparent and visible for everyone to see, the blockchain technology is what brought decentralization and security to the cryptocurrency world.
Just like I have said, blockchain technology is what gives birth to cryptocurrency, blockchain technology is used in approving cryptocurrency transactions, and the technology is as well responsible for its safety.
Blockchain technology is transparent meaning it records all transaction on the open database, and this is what brings decentralization to technology and differentiate between web 2 and web 3.0, this technology Is used to approve transactions and validation of new blocks.
Although other cryptocurrency platforms depend on other modes of transactions, regardless most of them are linked to blockchain technology, which is the technology that records the activity of blocks and their validation.
Blockchain Technology is also what made crypto mining possible, this technology is used to validate new blocks, and in return, it confirms the nodes and the miners are automatically rewarded for their effort in securing the network.
Can this blockchain work without the internet? - Yes, Blockahin can very much work without the internet, and an example of this is the Private Blockchain, in blockchain, the transactions are validated through a shared ledger, which afterward gets updated to the internet on the regular basis, but the private blockchain is such that is within an organization, and they are being carried out in a closed network, but this doesn't have much power as the public network and they have some restrictions as they are only used within the organization alone, which means they are just for voting or proof or ownership.
Cryptocurrency is cryptographic money, and different blockchain consensuses are accustomed to the generating of new crypto, and this method is referred to as mining.
There has been a lot of consensus for generating new blocks such as Proof of work, proof of Stake, Proof Brain, and many more.
This technology is based on Blockchain technology, for instance, the Proof of work, this is done with complex and high-tech machines, this is for the safety of each block on the network, and therefore to generate new blocks, a group of miners competes against each other to reach a consensus or solve a complex algorithm, whichever miner that came first wins the consensus of that block, whereby this is done with a lot of effort, and in returns, they get paid in the cryptocurrency they generated, and this method is called Block reward.
This is the technology that is used for mining cryptocurrency, and the same technology is used for securing crypto assets as well.
Not all crypto is based on Blockchain, some use a smart contract which is a partial blockchain technology, and some as well users layer security to secure new blocks, just like the ETH that uses PoS, which means the miners don't necessarily need to solve complex number before they can reach consensus, instead they could stake higher coin, and whoever takes the highest wins the validity of the next block.
There have been some common challenges in blockchain technology known as Blockchain Trilemma.
What makes up a blockchain is the decentralization, security, and scalability, this is the common challenges faced by many organization regarding the technology, as it is difficult for a blockchain to possess all these three unique qualities.
Some blockchains have more decentralization and security, but the scalability might be low, which caused the network to transact at a very low speed.
And there have been some similar situations where a network has more scalability and decentralization, but the network is not as secure, and this has caused a great trilemma to most networks, whereby many organizations are having problems choosing which of these challenges is more convenient for them.
When the introduction of bitcoin came into existence, this is not an issue as the bitcoin network runs smoothly with full decentralization, security, and less scalability, but the scalability becomes a problem when there are millions of users adopting this method, I guess the networks weren't prepared for much power at first, but as times goes on, the scalability has been getting solved with the adoption of other methods to improve transactions whereby they divide the workload between nodes, and this challenge has been drastically reducing bringing more positivity to the blockchain technology as well.
The Blockchain revolution has been greatly improving since the last decade, cryptocurrency is a digital asset that has proven total decentralization, and this is what exactly the digital economy needs as it gives individuals full control of power over their funds, and the uniqueness of cryptocurrency is that it allows individual users to own as much as they see fit without limiting their cash flow, and as well this has been a great improvement to the world financial system at large.
Thank you, everyone, for coming, and I hope you have a great day, I hereby invite @solexybaba, @josepha, and @Sahmie to participate in the contest as well.
TEAM 5 CURATORS:
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Curated by: @goodybest
Thanks a lot for the support.
As you have said cryptocurrency has dominated almost 38% volume of trading Market. It is true cryptocurrency will keep on wining. Nice write-up.
You have witten so powerful my friend, your have given a concised answer to this topic. Indeed blockchain is revolutionary. The decentralized system of operation alone is epic to talk about.
Thank you foe inviting me, I will surely participate.
Your explanation about the cryptocurrencies and the revolution of blockchain technology are quite good.
The Blockchain technology gain more popularity when it was implemented in the cryptocurrencies. There are number of innovations that are bought in the financial realm due to its benefits. But still there are some drawbacks that, we hope, could be solved in the future.
Yes brother, you are very right here. The creation of new crypto tokens in a blockchain are dependent on the consensus protocols that are being used in that blockchain. The mining process actually refers to the creation of new cryptocurrencies.
Thanks a lot for sharing your precious post with us. Good luck ahead.
Blockchain is a highly innovative technology, but it has its limitations. For one thing, blockchain requires a high-speed internet connection in order to function effectively. This means that many people in developing countries will not be able to use this technology.
There are concerns about blockchain's ability to process transactions quickly enough to compete with more traditional payment methods.
Generally, you have done well in this contest, and I wish you goodluck.
Actually, it's not about the internet speed that affects the scalability, scalability is when a network is able to process a transaction faster, like we have TRx that process transactions at 4000t/s, but not all network had this uniqueness.
Well, according to the transaction speed I don't much agree because in our country we use UPI which is terribly fast and also I know some international applications which are fast too, but I like thing the most and it is it's decentralized nature.
It doesn't matter the country or the internet speed, scalability is how a network is able to process a transaction fast, some network go as fast as 4000 transactions per seconds, while some can only process at 10t/s.
Which is why some are adopting other layers of scalability to improve there transaction speed.
@badmus-official You have explained various concepts but the most eye catching was this.
You explained the cryptocurrency as cryptographic money relating it to consensus mechanisms, as the use it to form new cryptos. This was the easiest and most important way to explain mining, you correlated three concepts in explaining this. This was really an expert insight. #steem-on