Blockchain is the technology that powers Bitcoin, hence plays a massive role in making sure that this cryptocurrency maintains its stability and continues to thrive with each passing day. Blockchain was introduced with Bitcoin’s establishment back in 2008 and since then, it helped Bitcoin rise to heights that none of us thought is possible.
Blockchain even has the potential to be the future of the financial industry because it is very efficient and effective in what it does. But what exactly is blockchain? That is exactly the topic that we are going to discuss in this article. We’ll be taking a closer look into this revolutionary technology and get familiar with it. Let’s dive into the details.
What is Blockchain?
In layman’s terms, a blockchain is a log that stores all Bitcoin transactions. It is updated daily by Bitcoin users, which is why this cryptocurrency has been labeled as highly decentralized and self-sustainable. Mining is a crucial part of it as it makes sure that each transaction is updated into this log.
Mining is Part of the Blockchain
Miners are people that participate in mining. In layman’s terms, mining requires miners to solve various complex puzzles. Each complex puzzle that they solve means that they have successfully recorded and verified a Bitcoin transaction. After a Bitcoin transaction is verified, it becomes a block and is integrated into the blockchain.
If a block is a notebook page, the blockchain would be the notebook itself. Thanks to mining, Bitcoin is updated daily. Not only that, but mining plays a crucial role in making a profit with Bitcoin. How? For every transaction that Bitcoin users verify, they receive Bitcoins as a reward.
Then, they turn to reputable trading sites such as Bitcoin Code to sell their Bitcoins and make a profit. Platforms like Bitcoin Code can help users maximize their profits by providing them with a very crucial service – AI analysis of the market.
AI systems that are able to predict the future fluctuations of Bitcoins supply traders with their results. In doing so, traders have intel on when is the best time to sell their assets and maximize their profits. Thanks to advanced services such as this one, there may be as many as 100,000 millionaires in the world who collected their wealth by trading with Bitcoin.
Blockchain vs Banks
At their core, blockchain and banks serve the same purpose – they process transactions. The blockchain processes transactions with Bitcoin, while banks process transactions with regular payment methods. But, which method is superior? The answer is blockchain and here’s why.
First of all, banks are far slower in processing and approving transactions. It may take up to 7 business days before a transaction made through banks is completed. That is not the case with blockchain technology. Since there are thousands of people who do these tasks daily and Bitcoin is fully optimized for online use, every transaction made with it is instant.
And if that is not enough, here is a little extra. When processing transactions, banks are known for charging various fees. By using Bitcoin and its blockchain, users do not have to pay any added or hidden fees. The general fees are also much lower than the ones of the banks. So, blockchain technology allows its users to save money with each transaction.
Finally, banks have a working time and are not always available. Bitcoin’s blockchain is operating 24/7/365.
Conclusion
As you can see, blockchain technology has tons of great advantages. Considering the fact that it is far more efficient than banks, it is easy to see why it should be considered as the future of online payments. Online payments are set to be the future, and blockchain is fully optimized for that.