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Understanding What Blockchain Technology Is, Its Importance And Structure Posted on : Nov 03 - 2018

During the last two years, cryptocurrencies have grown to become quite a large and well-known trend. They rose from being an unknown, background technology to the most talked-about aspect of both, tech and financial world. However, it is not enough to simply know that they exist and how they can be traded.

To truly understand cryptocurrencies and be able to make proper investment options, we need to go deeper and understand the technology that allowed them to exist in the first place. This is, of course, blockchain technology.

The Importance Of blockchain technology

The first thing to understand about blockchain is that this technology holds much more potential than simply being a building block for the crypto industry. While this was its original purpose 10 years ago, it has grown to become a lot more than that in recent years.

It now has numerous real-life use cases, it allows the creation of new projects, and it is likely the technology that will define our lives in the future. This is due to the fact that blockchain serves as a type of database. However, it is different than regular databases due to several factors.

For example, it is decentralized, which means that it has no central authority. It also allows users to claim ownership of the data they record on the blockchain. Not only that, but it is also consistent, which means that data that is being recorded cannot be in conflict with the data that is already there. This prevents data manipulation, deleting information, and alike, which makes blockchain perfect for storing data such as identification documents, and other important info.

At this point, it becomes obvious that supporting cryptocurrencies is not all that blockchain has to offer. Instead, Bitcoin and its altcoins are only the first of near-infinite amount of use cases that blockchain has to offer.

Some countries that did not share the initial (and in some cases: current) skepticism toward cryptocurrencies started researching blockchains a long time ago. This has allowed them to already gain some valuable insight into this technology, and start using it for storing medical records, making plans to use it for voting, and even make property agreements that would be recorded on top of it. View More