I have a serious question to ask you today. If your mum approach you and ask? What are blockchain and cryptocurrency? How will you explain it to her understanding?
The concept of Blockchain and cryptocurrency can be very tedious to understand by some people, including the elderly ones.
But because these technologies are here to stay for a more extended period, it’s your responsibility to explain it to her in a way she will understand to aid her decision-making in wise investments.
The concept of Bitcoin and cryptocurrency makes Blockchain technology very popular.
Explaining these technologies and concepts to your mum will furnish her with valuable information and act as a foundation for her to make wise investment decisions in the future.
With this in mind, here is a quick overview of how you can explain these concepts to your mum in the fast and simplest possible way.
Defining Bitcoin
To foster her understanding, you need to start with the known to the unknown style of explaining things. Bitcoin is already very popular.
My guesses are she might have already heard of Bitcoin; that’s why she is interested in blockchain technology.
Simply put, Bitcoin is a digital currency that can be bought, sold, and used to purchase goods and services.
Just like in the real world, where we use different types of currencies as a medium of exchange, in the digital world, Bitcoin is the first and most popular currency as a medium of exchange but only in the digital world.
Benefits of Bitcoin
- Bitcoin is decentralized, meaning it’s not controlled by any government or any group of people. Therefore, users do not have to worry about external interference.
- Bitcoin has no risk of inflation, unlike regular currencies, which is why individuals hold their coins for trade.
- Bitcoin can be used anywhere in the world and can be used in purchase anything over the internet from anywhere.
- Blockchain is the technology of use for Bitcoin, which hides the identity of the users against identity theft.
Since Bitcoin is a virtual currency, people can only use it in the digital world. Also, just like we have other currencies in the world example, USD, EURO, etc.
Companies have created several other coins aside from the most popular Bitcoin currency in the digital world were created in 2009.
That is where the term Cryptocurrency comes from:
Defining Cryptocurrency
A cryptocurrency is a digital money that runs on Blockchain technology.
This cryptocurrency can be transferred from one user to another without passing through any intermediary like a bank as traditional banks because it uses blockchain technology, which any bank or government does not control.
Today, there are thousands if not millions of cryptocurrencies and many coming out daily in the digital world.
The ability to study and keep track of the market, knowing which to buy, sell and swap at every point in time, is what cryptocurrency trading is about. Though it can be a very profitable business, it also has a high market risk.
Defining Blockchain
The most crucial concept and by far the most confusing one is Blockchain technology. If you can explain this to your mum, then you have done a great job.
Blockchain is a decentralized public ledger that records all the public transactions made with any cryptocurrencies across many computers.
The transactions and other information stored in the blockchain ledger are distributed across all the computers connected all over the internet, and there is no central point of control.
That’s precisely what decentralized means.
In a system where there is no central control, if the information stored a computer A is compromised, the rest of the connected computers are notified in real-time because all the data are accessible to all participants at the same time.
Aside from the regular storing of transactions, other data can be stored on blockchain technology. You can see the blockchain as a decentralized public database where eligible information can be stored.
As stated above, Blockchain can record other different types of information, including but not limited to money, identities, music, and even agreement between people.
Blockchain technology eliminates distrust as all the information is captured, and if someone tries to change the data, it spoils the code, and all the users will be notified. This accounts for the accuracy, convenience, and reliability of blockchain technology.
Further Reading
There are unlimited opportunities for people with Blockchain knowledge, from Blockchain content creators to Blockchain experts.
Below is a list of courses and content that I recommend to my readers who want to explore the endless opportunities in the blockchain industry.
Become a Certified Blockchain Developer
Learn how to start trading in Cryptocurrencies
Become a Certified Bitcoin Expert
Become a Certified Smart Contract Developer
Conclusion
As stated above, Blockchain can record other different types of information, including but not limited to money, identities, music, and even agreement between people.
Blockchain technology eliminates distrust as all the information is captured, and if someone tries to change the data, it spoils the code, and all the users will be notified. This accounts for the accuracy, convenience, and reliability of blockchain technology.
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Are you for real?