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Greetings everyone and welcome again bro my assignment post for this week's Beginner class with the topic Blockchain and cryptocurrency from lecturer @zology69
In your own words, discuss cryptocurrency and Blockchain.
INTRODUCTION
When you hear the word Blockchain for the first time, it sounds weird because how do you chain a block. This was my first reaction when I first heard of the word Blockchain.
Blockchain can be said to be a system where data is recorded in such a way that it is almost impossible to change or be attacked so you trust its accuracy.
It is essentially like a ledger on which Information is stored, and this data is the same across the whole network so every user is accessing the same information over the network.
Its gain in popularity is its usage in the development of cryptocurrencies.
Before going further, I would be giving a groundwork of what a cryptocurrency entails, and then we can see why it is important when we mention the word Blockchain.
CRYPTOCURRENCY RELATION TO BLOCKCHAIN
A cryptocurrency or sometimes called digitalized money is money but one which is digital, meaning that you cannot hold it physically but only online. At this point, we begin to see a correlation between cryptocurrencies and Blockchain because there is the identifying factor of it being online.
In a bid to create a financial system of exchange that was different from the one in existence, Satoshi Nakamoto Bitcoin creator created a system of transacting which required only the transacting parties to be involved thus eliminating the Involvement of third parties.
Cryptocurrencies are aimed at bringing about financial freedom by involving only the transacting individuals.
By being a system with which can be used to store irrefutable data, transactions in cryptocurrencies are encrypted on a block and every information about it is then added to the previous block in such a way that it cannot be tampered with or reversed. On and on it goes, thereby becoming a blockchain of data.
Today there are a lot of cryptocurrencies in the market and a lot more in the development stages. Being the founding fathers, all other cryptocurrencies are called alternative coins when relating them to bitcoin. Then the alternative coins or altcoins as they are popularly called can also be subdivided into those which fluctuate and those which maintain a stable price like the tether.
Although there has been a lot of use of blockchain technology, its success has been with the usage in the development of cryptocurrencies.
How are crypto and blockchain making life easier today? Discuss giving real-life examples.
The possibility of improvement which cryptocurrencies use in blockchain technology has continued to increase and I don't see stopping anytime soon.
• FINANCIAL TRADING
This is perhaps the most obvious of all the advantages which have been impacted by the crypto world. By removing the stressful and slower transaction time of regular financial institutions, what we see is a faster system of transacting.
An individual in Nigeria transferring money to another party in Ghana has to first go through his bank, and after approval, the bank connects the transaction to the bank in Ghana and approval has to also be before the second party has access to the money. Cryptocurrencies eliminate all this stress by using blockchain technology, both the Nigerian and Ghanaian transact directly and the fund is transferred immediately relieving both parties of the stress which would have been involved.
• ADVANCEMENT IN SCIENCE
This is another situation where this usage has started to gain traction. Blockchain technology opens us to a wide range of possible ways in which scientific data can now be accessed without barriers.
This improves the rate at which information is shared amongst the scientific community and the possibility of making groundbreaking innovations continues to increase as such.
Using Blockchain technology which is like a field of Information that is continuously being added to, a researcher from Japan can easily access data being shared by a researcher from Germany on the same topic. This eliminates time wastage in improves community relations.
• FINANCIAL FREEDOM
One of the main characteristics you will find about cryptocurrencies is their decentralized nature.
All of this means that you and only you are in control of your funds and only you can choose to properly manage or mismanage it all aiming at giving individuals the freedom that is not otherwise present in centralized ones.
What is decentralization. What are some advantages of decentralization?
Decentralization is simply not centralized. Decentralization means that the system is not in the control of anybody or a system of government. This is perhaps the most notable in the usage
in the crypto world.
Centralized systems are most notably known for the fact that the system is in control of certain authorities who have the power to make rules or forms of modifications.
As mentioned in my earlier example sending funds in centralized situations involves a third party to facilitate it, placing all authority and access in the hands of the third party. They can choose to handle it in whatever way they deem fit.
With decentralization, this problem is eliminated since there is no need for transacting individuals to have any real-life information making it favorable as one user does not have the upper hand over another since they are sharing the same accessibility.
ADVANTAGES
Some of the important advantages which can be linked with decentralization include the following
AUTHORITY
Decentralization offers a sense of freedom as the system is not in the control of any authority or affected by government change.
The fact that it is not tied to any country has improved its acceptance amongst users.
SECURITY
Decentralization creates a secure system that is not as prone to cyber attacks as we have with centralized ones. By being a system of networks online, information cannot be tampered with as all users are accessing the same data thus making it hard to be tampered with.
Remarks
You have done in-depth research on the homework assignment.
In the last question, you could’ve given more advantages of decentralization. Give at least 3 points anytime you’re asked a question without limits from now on.
You wrote homework in your words and haven’t plagiarized. We at blurttradinghub, are trying our best to produce original quality content free from plagiarism. Good job and keep it up.
You have exhibited a fair knowledge of markdowns, but you can still improve. For example, you use lines to seperate homwork questions from answers and you could also bold certain important terms too.
Your content is easy to understand and has been written in simple language.
Your home work has been reviewed by @zology69 the above are your results. I look forward to grading your work next time.