Blockchain explained - Is it worth the investment?

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Date: 6 January 2022

Securing transactions using blockchain technology

For professional traders, investors, or business owners looking to make at least 1K daily profit, adopting blockchain technology could be a very lucrative move.

This article will explain what blockchain technology is and why it's something that you should consider for future investments.

Blockchain definition

Blockchain (sometimes also known as DLT - Distributed Ledger Technology) is a form of technology that enables digital assets and transactions to be immutably recorded and protected from alterations, meaning that they are protected and preserved.

This is achieved through what is known as cryptographic hashing (a method of converting data into text or a 'text string') as well decentralised data storage. Instead of being stored in one specific location, it is spread across several locations around the world, and therefore, does not have a single central point with which to be tracked.

For instance, if you were to share a text document via P2P (peer to peer) technology, you would enable several users across the world to have access to it. Therefore, the text document would become decentralised, because it is being stored and spread in several places around the globe.

A blockchain essentially stores information and data in a 'chain', and this protects the integrity of everything contained within. It is also linked together in a date format (ie a chronological order) making it easier to follow and track by the relevant parties.

Blockchain and cryptocurrency

Since blockchain contains a ledger (a space with which to record information and data along with the history of everything being recorded), cryptocurrency uses blockchain technology in order to protect transactions and the crypto itself. The tech provides an open ledger that the public can see, but not access. However, it is important to note that most of the information about the users making these transactions is anonymous.

The benefits of blockchain technology

As cryptocurrency transactions can be seen by users, and records are made of each transaction, they guarantee a high level of transparency. The blockchain ledgers are also extremely accurate and very easy to track. The decentralised nature of the tech also means a high level of security - cyber-attacks are far tricker to mount than when data is recorded on single servers. Decentralisation also means third-party institutions like banks or other financial organisations are not required, meaning transactions are much quicker and can avoid expensive transaction fees.

Some to believe that there has not been more investment from currency and stock investors in the crypto markets because centralised financial institutions are not involved. As things stand, crypto is not currently widely endorsed or accepted by financial institutions and traders.

Adoption of blockchain around the world

Some companies have started to take advantage of blockchain technology. Most famously, Tesla made a huge investment of 1.5 billion Bitcoin in 2021. Tesla have also announced that they may begin to accept it as a source of payment for their cars. Elsewhere, cryptocurrency has already been accepted as a payment source in countries such as El Salvador. Amazon was continually rumoured to be considering crypto payments during 2021, and there have been very recent murmurs that they may even launch a crypto token of their own. 

So, it's clear to see the investment potential of blockchain technology. Its capacity for making transactions and information secure, as well as providing the world with a potentially easier-to-use and safer form of technology for payments and data storage also make it a very attractive proposition.

Copyright 2022. Article made possible by Sarah Hughes, Muve Media & Marketing

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