What Is Blockchain – A Refresher Course
It is a must!
Yes, we must apologize to many of the readers of the Nasgo Blog. You see, I have discovered that many of our readers just do not understand blockchain technology. And I do understand your plight; it would be like me trying to read a technical manual on rebuilding an engine from a car.
In this post, we will provide you with a basic refresher course on blockchain technology. Hopefully when finished reading this post, you can answer when friends or family ask you, “What is blockchain?”
It all started when a person or group of people who went by the pseudonym of Satoshi Nakamoto created a digital currency called Bitcoin that would be finite and would run on a digital technology called blockchain.
Created primarily to control digital currency, as entrepreneurs studied how the Bitcoin blockchain worked, the realization that this technology had benefits far beyond digital currency, also known as cryptocurrency.
Blockchain is a decentralized technology meaning that anyone can look and study a blockchain code and make changes within that code.
Blockchain allows information to be shared digitally, but it cannot be copied or manipulated.
The best way to describe any information that is in the blockchain is like it was “carved in granite.” You cannot erase it or change it, and it is there as long as that particular blockchain is in existence.
The Basics Of Blockchain
Let me ask you, Do you understand how the internet works?
I doubt it… But you still use it.
The same is true with blockchain. There are very few people who qualify in knowing how blockchain technology works in its entirety. Just knowing the basics is enough.
I really like how BlockGeeks explains basic blockchain.
Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
It is like an Excel spreadsheet that is cloned many times across a network of computers and is continually added to and updated. With the key being that a majority of those computers must agree on any of the updates made to that spreadsheet.
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There are a series of steps that blockchain technology uses:
- A transaction request is made.
- That request is broadcast to a network of computers that are known as nodes.
- Using known algorithms, the node network validates the transaction as well as the status of the user.
- That transaction is combined with other transactions to create a new block of data.
- The new block is added to the blockchain and in such a way that it cannot be altered or deleted.
- The transaction is completed.
This system was used to buy, sell and trade digital money or goods using digital currency as the payment method.
But consider those steps and it is so simple, but extremely complex (please forgive the oxymoron), that nearly anything that requires paperwork and verification can be made more proficient and transparent just by using blockchain.
All because no single entity controls or “owns” the blockchain, it is the most democratic process of all.
Just because Nasgo has a blockchain does not mean Nasgo “owns” that blockchain. No one owns the Nasgo blockchain. In much the same way that no entity “owns” the internet. People can build websites and sell hosting as well as means to use the internet, but Go Daddy, T Mobile, and even Government entities do not “own” the internet.
The same is true with blockchain… You can build dApps, sidechains and tokenize to make money from the blockchain, but neither you or anyone else can claim ownership of the blockchain.
What Are Blockchain Benefits
Now that you have a basic understanding, you should also know the benefits of blockchain… And I am just listing a few benefits. There are many more:
- Transparency – since the data is shared with all network participants, the who, what, where, when and why is all right there ensuring a consistency and accuracy that was not true with bulky paperwork.
- More secure – The possibility of hackers compromising a blockchain data system is nearly impossible. The heavy encryption puts a damper on their goals and if by chance they do get through the encryption, the network will know who they are and where they are.
- The ability to trace issues – A good example is the recent outbreak of food borne illnesses. If blockchain is used, at the first sign, within minutes, the product can be traced to the source and all further shipments can be halted as well as immediate recalls made.
- Efficiency – Anything using blockchain will see more efficiency and the process will be faster.
- Lower costs – Blockchain can eliminate many middlemen and therefore will reduce costs that can be reflected in lower prices.
- Funding – This is an area that many who are using the Nasgo blockchain have found to be huge. Instead of taking a loan or mortgaging their house, entrepreneurs simply tokenize their brand… They essentially create a brand cryptocurrency, and their fans and followers can purchase tokens to fund the business. It is a great way to invest in your favorite brands and support their growth and watch their token gain value which you can save, sell or trade.
We do hope this what is blockchain refresher course gave you some insight.
Many businesses and brands have been getting on the blockchain, tokenizing and seeing huge benefits.
Nasgo is the GoDaddy of blockchain and we are here to help you bring your business into the blockchain era.
So if you have any questions, just post them below. And be sure to look Nasgo up on your favorite social media site. Like us and you will see updates on the Nasgo blockchain. Plus, subscribe to our blog… Just scroll to the top and in the right sidebar, just enter your email and you will be updated to new posts.
Thanks for stopping in and share this with others who may be wondering what blockchain is…
Stay Free With Nasgo!