Blockchain Tech and Crypto Payments

In this post I will be explaining about what is Blockchain Technology and Cryptocurrencies associated with it, how it works and how disruptive it is for traditional centralized systems. To begin with, blockchain tech is focused on privacy, transparency, decentralization, and carrying out transactions on network in quick and efficient manner.

Blockchain got popularity with Bitcoin which was created by Satoshi Nakamoto (An individual person or maybe a group behind that is still remained as unidentified in the General public).

Blockchain consists of number of blocks which is distributed across different peer to peer networks can be termed as chain. This allows any person to view the transaction recorded in each block and that cannot be modified or deleted once the transaction is processed in the ledger. It is one of the transparent records keeping tech which one can be sure of, as no central authority is present and the control of identifying and validating transaction is done by the miners who are located across the globe and have their own system to validate, by this it ensures once a block is created it cannot be destroyed by anyone, which gives importance to transparency and accountability.

Who Powers the Bitcoin blockchain? The most popular way is proof of work (POW) that is followed in the case of bitcoin where the Miners around the world do mining with help of ASIC miners which is a powerful equipment which calculates complex codes, mines and validate a block, however lot of electricity is consumed in this process and the cost of power may vary according to different regions. So, a question might come in mind how do the miners earn, its simple the more the powerful mining capacity they would have a greater number of coins will be generated as per the computing power deployed to mine such blocks and later on sell those bitcoins in open market as per the profitable rates.

Other popular cryptocurrencies such as Ethereum, Monero, Dash etc can also be mined by using a gaming graphic card although the coins will not be minted as much but it serves the basic foundation of decentralization network were the more the number of peer networks involved the greater the distribution of power.

One of the most popular use cases of blockchain is payments system were people from one point of the world can transfer any amount of money (No limits imposed) to other part of world with a mere small transaction fee, that also without any help of Bank or other financial intermediaries. The Transaction can be processed in a range of 10 to 30 minutes depending upon network load (For bitcoin). Also, there are other crypto currencies which can process Hundreds of transactions in a minute (E.g., Ethereum, Litecoin, Ripple etc).

Due to huge processing fees by banks and other documentation work, people have resorted to the use of Crypto Payments which make transaction at ease. Also, merchants have started accepting crypto currencies as the merchant fees imposed by bank gets some portion out of their revenues which seems costlier for merely processing a transaction.

To conclude, this tech is still in a development and adoption stage with lot of rules and regulations are yet to be decided by governments of different nations. Some governments perceive crypto currencies as threat to national Integrity and some not. However, use of blockchain without cryptocurrencies is being recommended in the areas such as File storage, Land title registration, KYC and Political elections. It seems blockchain will transform the digital world as we move towards accountability and transparency in overall system.