I’m sure you may have heard about Bitcoin in recent news, especially in the world of investing. Bitcoin is known as a cryptocurrency, a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operation independently of a central bank. For those of you that aren’t tech savvy, it essentially means that currency will not be controlled a central authority such as federal banks or the government.
Imagine being able to transfer money or making payments without having to deal with transaction fees, with guaranteed anonymity for payments, and secure transfers. That is the goal of cryptocurrencies, to decentralize wealth and give individuals more control over their money. We have seen several market crashes in the past decade such as the Dot Com bubble in 2000 and the recession in 2008. There has been movements to bring attention to this like the “We are the 99%” Occupy Wall Street. People are tired of having the economy controlled by huge corporations and want alternatives.
That is where Blockchain technology come into play, which is a digitized, decentralized, public ledger of all cryptocurrency transactions. Transactions are recorded and added to ledger and allow market participant to keep track of digital currency transactions without central recordkeeping. This is primarily used to verify transactions within the global network and then verified by the network using nodes (computer connected to the network). The most popular cryptocurrency is Bitcoin, however there are thousands of different cryptocurrencies developed in the past few years.
I encourage you to learn more about this because it will eventually be used for a variety of practical applications. Here is the website for Bitcoin: https://bitcoin.org/en/