Taking Blockchain to the Next Level: What Role can You Play?
Every time that you go to a bank or initiate a transaction to send money, the process takes long and is also expensive. As if that is not enough, personal transaction details, such as names, bank balances, and financial statements are available to multiple third-parties, from bank management to cashiers. The good news is that the new blockchain technology is helping to address all of these challenges. For example, instead of waiting for days to process payment, blockchain and cryptocurrencies can help to complete that instantly.
However, this technology cannot advance without the involvement of more people. In this post, we will demonstrate the role that you can play in helping to take blockchain technology to the next level.
How Does a Blockchain Network Operate?
The first blockchain, Bitcoin, was developed by Satoshi Nakamoto and launched in 2009. A blockchain is a public ledger that is decentralized to help people run transactions without involving third parties. Instead, it relies on impartial nodes spread in the network to validate transactions. So, if you want to send money through a blockchain network, the transaction is completed instantly on a peer-to-peer basis.
After initiating a transaction, it is taken by the nodes that follow back to confirm that your address has enough coins to send. They also confirm the recipient’s public address is available, and if everything is okay, the transaction is completed. The details of the transactions are captured and added into the next block, which is added to the growing “chain-like” network.
The nodes that confirm the transactions replace the centralized authorities, such as banks, and are rewarded for the job. If the blockchain network is using proof of work (Pow) protocol, like Bitcoin, the nodes are required to solve complex mathematical problems to get a chance to find the next block. This method is also used to release new cryptos into the market. Unlike PoW protocol, proof of stake (POS) consensus mechanism requires one to have a stake in the respective blockchain to get a chance to confirm transactions. The reward can be new coins or part of the transaction charges.
Why the Blockchain Technology Needs You
Now that you know how blockchain networks work, we will now tell you why you should get involved:
- Helping with Blockchain Governance
Because they are centralized, blockchain networks are not owned by anyone. For example, the Bitcoin network is owned by those who hold the coins. Therefore, buying cryptocurrencies means that you are part of it and will be eligible to vote on the blockchain’s matters. For example, developers on the network cannot add new features or initiate a fork without the node of coin owners.
- Increasing the Use of Blockchain and Cryptos
The slow growth of blockchain technology has largely been attributed to the poor uptake of cryptocurrencies. When people do not buy the coins or only a few businesses use them, developers are discouraged from using them. So, buying the coins and using them can help to demonstrate their advantages and persuade others also to join. This progressive use is demonstrating that blockchain is indeed not bad as some initially thought.
- Supporting New Services and Products
The blockchain network has opened avenues for new products, from crypto loans to non-fungible tokens (NFTs). When you join the preferred blockchains and buy selected cryptocurrencies, it becomes possible to take advantage of these services. For example, you can now stake your coins to earn more or use them to take crypto loans.
As you can see, blockchain technology is here for all, and your involvement is needed to help take it to the next level. The good thing is that it has loads of benefits for getting involved. So, which blockchain do you join and how do you buy crypto coins?
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