Greetings to all |
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Hopefully, you all will be well and healthy by the mercy and blessings of Almighty Allah. Welcome here...As we know season 6 Week 1 is at the end. So this post is the participation in the contest organized in the Steemit Crypto Acadmeyand the topic this time is Blockchain Revolution. So let's start...
Many things have changed in the financial world with the step of the digital economy. Cryptocurrency is an electronic and digital form of currency it has revolutionized the economic system in many ways it can be used for online purchasing, trading stores, and many more purposes and help to build the economy more strongly.
Cryptocurrency is a decentralized system which means there is no third party involved in it we can easily and securely perform the transactions. It was first introduced in 2009 when Bitcoin stepped into the financial market and after that many innovations occurred in the crypto market and many other coins are introduced.
With the progress in digitalization, people start trading coins in their crypto wallets and start earning. For trading and making transactions we just need a crypto wallet and an Internet connection and we can make the transactions safely the currencies and coins can be exchanged.
It is an important and worthy factor that we do not need to go to the banks or any central source and perform the long procedure of transactions, but just with some clicks, we will be able to buy, sell or trade the tokens. In this way, we will be able to perform international funds transfer more easily and securely.
We can imagine the importance of crypto through its more attractive features of blockchain technology, security, and many more. Crypto has more potential as compared to fiat currencies which are less secure and have long payment processes.
Privacy is also more in the cryptocurrency as compared to other fiat currencies because there is no third party involved to concern with our transactions we can make payments and buy different goods and services by just accessing our wallets but in the case of fiat currencies, central banks are involved which decrease the privacy.
One more important factor is decentralization and trading without the need for any intermediaries. However, it has a lot of features but still, due to the large number of crypto coins investors need to research before investing in particular projects, this will decrease the risk of scamming, and safely they will be able to get their returns.
It is the revolution for the coming generation because it changed the limited thinking about money to huge dealings and make the mindset towards the digitalization of the economy instead of physical currencies.
Most of the cryptocurrencies are based on blockchain technology that helps to secure or store the transactions performed. So that were some important factors of crypto and their revolution which make it immersive due to worthy features of new technology. It is expected that in the future the progress in the field of crypto and making the economy into a digital form will be better.
Cryptocurrency is the revolution in the financial world. Revolution pointed towards the gradual change that everything keeps changing in the world as technology revolutionized the whole world cryptocurrencies also revolutionized the economic world and it uses the feature of Cryptography for security purposes.
As it has changed the limits of the financial system with its new features of security, fewer transaction fees, easy accessibility, and many more. As it was really difficult to perform international transactions and KYC verification processes were long and also have fees to perform long payments, this problem is solved by crypto in the way that one can just make any kind of payment with their wallets.
There is no involvement of third parties as they are decentralized and do not need to go to the central banks as happened in the case of the fiat currencies. We just need a connection to the internet and funds or digital currencies can be transferred to other wallets.
It is based on blockchain technology and all the transactions we performed are mostly stored on the blockchain system, it is the public ledger system that stores the transactions which are secured by cryptographic elements or tools.
So the blockchain system involved in crypto has increased the security and transparency which increases the trust of the investors that they can easily invest and get rewards from their assets by involving crypto trading.
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With the involvement of blockchain technology, it has become difficult for scammers to scam and the security of the assets has been raised in this way which is quite good for the progress of the financial world.
The blockchain system is used by most of the cryptocurrencies but not all the crypto are based on blockchain technology others may have another factor or contracts involved known as the smart contracts.
As the crypto world progress, market capitalization goes increasing and many institutions have adopted the way but still, there are some restrictions in the implementation of the technology due to some government restrictions and many other factors that people think there will be more scam.
The primary purpose of blockchain technology is to enhance security or to provide smoothness in the working. Blockchain technology has made the cryptocurrency decentralized more securable and transparent and there are many features developed in the crypto world.
Long chains are made by the blocks mined and verified by the validators. The technology keeps growing with every transaction performed by the addition of the blocks in it. Each block mostly consists of the cryptographic hash, time, and the transactions pieces of information and validations.
Miners of the crypto are those that verify and commit transactions on the system and in reward the mined cryptocurrency is given to them. This is the working of blockchain and mostly the top currencies such as bitcoin distinguish between legitimate transactions.
Bitcoin is based on the proof of work mechanism as the complex mathematical problems are solved and then got the reward in the form of crypto coins.
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Blockchain technology is a transparent technology all the transactions are recorded on the open database that takes the decentralization, this technology is used to approve the transactions performed, and also the new blocks are validated and generated to keep the addition in the chain.
It resulted that the creation and validation of blocks is a complex process that is done with the help of the machinery of high quality and as a result of the complexity of approving and creating blocks the mined crypto is earned and the reward is known as the block rewards.
Every Cryptocurrencey uses the Blockchain |
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Not Every cryptocurrency uses the technology of the blockchain as I have discussed earlier some cryptos work on other smart contracts and an example of it is Etherum which did not use the blockchain technology and uses the proof of stake instead.
It can be said as pos is a partial blockchain technology and the process of flow of stake is the main difference between them. So most of the cryptocurrencies use blockchain technology but some of them use other contracts also.
Blockchain technology is an immersive technology and there are many purposes and reasons that cryptocurrency required this technology. The most important factor is the transparency of the transactions we performed, this fact increases the trust of the users and investors can easily make their transactions without any fear of being scammed.
Security is another major factor of blockchain technology as it uses cryptography as its security tool so every transaction we perform is completely recorded by the blockchains and can not be deleted or edited later so it can be said that blockchain technology has enhanced the security feature for the cryptocurrency.
As blockchain technology is decentralized so it does not involve a third party and the removal of the third party and performing your transactions by yourself give and enhance the trust of the users.
Every organization and institution is involved in corruption, the step of blockchain technology helps us to be away from scams and illegal works which is an important factor for traders or investors.
Although a lot of features are there but still some adoptions are required for the technology to work better. Mostly many blockchains run on the presence of the internet.
Can blockchains run without internet. |
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Not every blockchain runs on the internet only but there is the involvement of the internet to some extent as the transactions and trading can be done which are validated and approved in the presence of the internet there are some private blockchains that can run on this procedure without internet. These private blockchains are less approved and trusted by organizations than public ones.
Many challenges are faced in the implementation of blockchain technology and some of them I will discuss here.
Not Globally Accepted |
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The technology is not globally accepted as many countries have banned cryptocurrency in their countries . Government approval is the major issue in the implementation of blockchain technology globally.
Scalibility |
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Low scalability is another issue in the implementation of the features although it has more security and decentralization still it is an issue.
Expensive |
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There are so many coins in the market that are very expensive and create a challenge in the implementation of the technology as it needs some blockchain developers that need the concerned amount or tokens.
Scams and Frauds |
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Some illegal works or transcations created restrictions in the implementation and people think its implementation will be the way towards the scams of our assets.
Lack of knowledge |
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Some people are unaware of the use and make transactions on the blockchain system. So they consider the fact currency is better as compared to a digital one.
Cryptocurrency has revolutionized the whole financial world and blockchain technology will be quite good due to its security, and transparency the revolution of blockchain technology has made the economic system and world better. There are some restrictions in the implementation of the technology and I hope in the future that will be solved.
At last I would like to invite @temitopef ,@chant,@liasteem to participate in the contest.Thanks
Regards
@mateenfatima
A well explained and well managed post. You have a great knowledge about the Blockchain technology and the working of the cryptocurrencies.
The Blockchain technology was introduced very older but the implementation of this technology in the development of the cryptocurrencies proved to be a very impressive factor in the growth and development of the Blockchain technology.
Yes dear, this is one of the most impressive revolution in the financial realm that is bought by the implementation of the Blockchain technology. The cryptocurrencies can also provide a lot of earning opportunities for the traders as well as the large investors.
The volatility of the crypto market allow the traders to take advantage of it and they can make impressive returns from their trades by understanding the situations and the trends of the market.
Thanks a lot for sharing your beautiful article with us and I wish you a very good luck for the contest.
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Thanks for your precious words.
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I must commend that am impressed with your general presentation and points shared. You would agree with me that blockchain-based transactions are immutable and irreversible. Once information has been written onto the blockchain and confirmed by the other nodes on the network, it becomes an indelible part of history.
Distributed ledger technology is secure, permanent and unchangeable because it's spread over many different computers. A distributed ledger stores data across its network, instead of on just one computer. This means that there is no central point of failure, so the information can't be hacked or lost due to a computer malfunction.
Generally, you have presented a good article for us this week friend, and I wish you goodluck.
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Thanks a lot for your valuable words.
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You have spoke so well concerning one of the problem about the blockchain which is the acceptance of it. It is in no doubt that the blockchain is not accepted everywhere and as such, there are restrictions to which the blockchain can be used.
But it is of a truth that the blockchain decentralized system is revolutionary, it has made our economy and othe infrastructure more better. Places like the hospitals now make use of the blockchain to store data and information about a patient so easy which can be accessed in no time. You have done well my friend. Greeting!
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Thanks for your visit.
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It was a good read. you have rightly said that these digital currencies have brought a huge revolution in this world and the digital economy.
for sure there are restrictions and especially in our country it will take time for this technology to prevail but hoping for a better future.
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Thanks a lot for your visit.
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Hi mateenfatima, certainly cryptocurrencies are revolutionizing the current financial world, in fact they are considered the biggest phenomenon after the Internet.
I also think that Blockchain technology can be very much more useful than now, but it must first overcome the challenges you well describe. from my point of view, education is an important part to work on in the future years.
Greetings and much success.
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Thanks a lot for your valuable comment.
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