blurttradinghub || Season 1 - Week 2 || Blockchain and cryptocurrency lecture by @ammyy

Hello everyone.
So happy to be back here again, I want to appreciate Prof @zology69 for a well detailed lesson on cryptocurrency and Blockchain. I learnt alot about how cryptocurrency and Blockchain relates and how it has made a big impact on the society today.

Today I will be answering questions laid down by our professor on Blockchain and cryptocurrency.

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QUESTION 1;

In your own words, discuss cryptocurrency and Blockchain ?

CRYPTOCURRENCY: It is created for the medium of exchange but it is a digital currency and it uses cryptography to protect and verify transactions made.
Cryptocurrency are intangible asset unlike other currencies like dollars, cents etc, another thing that makes Cryptocurrency different from other currencies is because it does not need the approval of bank to verify its transactions and most importantly it is not controlled by a third-party or central authority.

Cryptocurrency is gotten through mining which means computer processive power are put to work to solve mathematical problem to earn part of the coin, another way to earn the coin is to purchase from a broker which you can store for future purpose or spend when you like and it is kept in an encrypted wallet.

The value of cryptocurrency is decided/comes to a conclusion by the market force which is originated from the buyers and sellers.

There are two types of cryptocurrency:
A.Stable coin: it can be described as a cryptocurrency that was built to not fluctuate in price and the value of a stable coin is tied to real world assets like pounds, dollars etc.

B.Volatile coins: It has a fluctuating value meaning the price is not stable for example A coin bought at $2 can move to $50 or less than the bought price, changes occur due to the flow of demand and supply of the buyers and sellers.

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BLOCKCHAIN: It can be defined as a digital system which record data and stores information on a virtual ledger which makes it quite impossible to change it or even hack the information.

Each block present in the chain contains the amount of transactions when a new transaction happen on the Blockchain, a record of the same transaction is added to the participant's ledger.

The transactions are recorded with hash (immutable cryptographic signature), if an hacker wants to change the Blockchain system then they would have to change every block in the chain which is quite impossible or hard to crack.

NOTE:
There is a relationship between the Blockchain and cryptocurrency because the cryptocurrency function on the Blockchain where the transaction are kept safely.

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QUESTION 2;

How is crypto and blockchain making life easier today? Discuss giving real life examples.

EASY TRANSACTION: Transfer of funds has been made easy with the help of cryptocurrency. Transaction can take place immediately and it is acceptable works wide with cheaper fee attached to it. E.g there is no need to queue in the bank and wait tirelessly to transfer to someone in addition submitting personal information to verify transaction, in cryptocurrency it is not needed.

NO THIRD PARTY: You can conduct business with people from around the world without a third party involved in your business matters and transactions on cryptocurrency are peer-to-peer transaction. E.g A business man can his deal with his fellow business men without the involvement of a third party which can be inform of government or banks.

24/7: It is available whenever you need it, regardless of the time unlike bank that operate at a particular time.

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QUESTION 3;

What is decentralization. What are some advantages of decentralization?

Decentralization can be defined as a system where no central authority makes a decision for anyone, it is a place where users are granted the freedom to act however they like.

Centralization is a system where everyone is accountable to a central authority that oversee and control the system.

ADVANTAGES.

Quick decision making: Decision about the system are made easier and quicker without the central authority involved.

Freedom: users are granted the right to act freely and express themselves.

Security: The security level is tight which makes it impossible to change the information on the system.

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