Hi everyone . welcome to this trading course. this me your technical analysis teacher. Today we learn about block chain technology.
So let's get start .
Block chain technology in a nutshell , block chain technology enables users to transfer digital goods (.e.g. Money and intellectual property) securely, transparently, and quickly.
Note ; it is the core technology behind most . if not all, crypto currencies.
In the world of digital transactions , blockchain technology help us combat issues like double spending this referred to as spending the same money more than once .
Q#1 So how does blockchain technology work?
We have come up with an analogy on how a transaction recorded and stored on a blockchain.
Say you have a chocolate bar . you give that a chocolate bar to your friend , Kate.
You no longer have that particular chocolate bar , but Kate does .
But how certain is Kate that the chocolate bar is hers to own?
Well you physically handed it over to her . and she has full access to it visually and physically.
Therefore, by literally handing over the chocolate, you lose your rights to own it and Kate can see that she owns it because she actually possesses it .
Now , suppose you have a digital chocolate bar you would like to send to Kate .
But you decided to make copies of it first to send to your other friends .
Or you sent it to Kate but attached Ben and jerry to the email for them to download as well .
How does Kate know whether she will receive original ( and only copy of ) chocolate bar you promised?
The simple answer to this is , she can't.
Consequently, the third party a layer perhaps , is needed to control the transaction and make sure the receiver and sender fulfill their ends of the bargain .
Since anything digital can be replicated again and again , it is very difficult to implement a digital paying system. That was the main problem that crypto currency developers aimed to solve . This problem is referred to as double spending.
The solution to this is make a common ledger a book of all transactions , public. Thus , if Kate is receive the chocolate bar from you , she view the ledger and see what you transferred how much and to whom . This the promise of block chain technology. Please follow me for informational and educational blogs . thanks