At this point, you’ve probably heard of blockchain technology. Blockchain is basically a public immutable distributed ledger, which is a fancy way of saying that it saves every item change, purchase, and sale on an encrypted platform. Blockchain technology is making waves for many reasons. Some see it as vital for the future and others view it as an impediment to the structure of our society. Whether you are excited about the future or are afraid of what might come, below is everything you should know about blockchain technology.
Immutable Ledger
The only way minted digital files as tokens are safe is because the information is encrypted in an immutable digital ledger. That means that no one can edit the details of the transactions. Even if there was a mistake that had to be corrected, both the mistake and the correction are listed on the ledger. Of course, nothing is truly safe on the internet but the level of hacking skills and dedication to hacking are extreme to get into the ledger. Even then, they would only be able to change the way it appears on that person’s device. The encryption closes the channel otherwise. It’s no surprise it is being used by non-tech businesses too.
Fungible vs Non-Fungible
To create a blockchain asset, a digital file needs to be minted using smart contracts in a ledger. Then, a digital wallet is needed to store the asset. Minted tokens come in two forms. First, there is the fungible minted token, which means that it can be replicated. On the other hand, non-fungible tokens, commonly known as NFTs, are completely unique. It’s also possible to mint a digital file like a photo or video and make it a fungible token, but NFTs are usually valued for their rarity and uniqueness. However, just because a token is fungible doesn’t mean it’s not valuable.
Cryptocurrency
The most common form of fungible tokens that utilize blockchain technology is Crypto Certification. Cryptocurrency is an encrypted currency that is completely decentralized. This is viewed differently by the powers that be. It opens the doors to trade, buy, and sell internationally without government regulation, taxes, or interference. It also enables black market purchases. Even though cryptocurrencies are not related to state currencies, they can be converted into local currency and even withdrawn in cash. Cryptocurrencies come in many forms. Some are more reputable than others. But one thing is for sure—crypto is here to stay.
NFTs
Non-fungible tokens, which are commonly known as NFTs, have made a huge splash over the last few years. Some people managed to make a lot of money on them, but most dismissed the idea of NFTs entirely. NFTs are tokens that cannot be replicated, minting them into a unique digital file that is proven by a distributed ledger. Just about any digital content can be minted into a token People have done with a unique copy of a record or a common meme that they can prove ownership of. Whatever you think about NFTs, they pose an interesting question about the ownership of digital content. When an NFT is minted, the ownership of a digital file is established.
Economic & Political Impact
Obviously, the ability to buy, sell, and trade digital content with very little oversight is causing waves of controversy. A lot of governments, regulators, and financial institutions are not happy about the advent of blockchain technology, immutable ledgers, and digital assets. A few governments have embraced it, even creating their own cryptocurrency but these are few and far between. The economic and political impact of blockchain still remains to be seen.
When it comes to blockchain technology, it isn’t as hard to understand as some think. It’s a public ledger that proves ownership over digital assets. Digital assets are minted into tokens that are either reproducible or not. They are bought and sold, while the transactions are always recorded. Whether you are interested in blockchain or just want to know what it is at all, there is a learning curve, but it’s not that hard to understand, like Crypto Courses available in the crypto industry.
The overall impact of blockchain could be societal. It could change the world in significant ways for the better and the worst. Whether you are supportive or not, there’s no stopping blockchain and its advancements. It’s better to understand and go forward with knowledge.
