Are crypto currencies the new age , newly discovered, internet back in the 90’s?
After all , why is every body talking about all of the great features and possible use cases of this technology , it’s just a way to have faster , easier and more secure financial transactions with low costs and no middle man involved? Or is it?
If you think that’s all this space has to offer them you’ve never heard of DeFi , metaverse , DeApps before . You’ve just scratched the surface of what’s there to come in the decentralized future that lies ahead of us.
Well , you might ask how is all of this possible with this one invention?
This is only possible because of the under lining technology behind all of the ideas and projects involving CryptoCurrencies called “The Blockchain”.
The blockchain is a newly used term ,the original being “time stamps” , which is based on two important concepts which are : lack of fungibility or in other words being “noninterchangeable” , and the “consensus mechanism” , which lay the ground work needed for building fully decentralized platforms and applications that can replace any centralized system or organization on the planet.
That is how NFT’s or Non Fungible Tokens are made possible and that is why tech giants nowadays are looking to combine AR(augmented reality) and VR(virtual reality) to create decentralized virtual worlds called “The Metaverse”.
The technology is named blockchain because the data or the transactions are actually being put into a block structure and given a unique hash so that the data is noninterchangeable , secure and also the hash of the previous block (Except the first block which is the Genesis block meaning no blocks come before it) , so that the transactions would form a chain like structure and if the data in each block gets modified it would result in the hash of the modified blocks and all the blocks coming after it would change and there for would break the chain of all the blocks.
The last peace of the puzzle is the consensus mechanism in which the data gets authenticated and verified by the nodes (Miners and their mining devices) which provide the computing power needed to find the right hash for each block that gets verified and there for successfully put in the blockchain.
That’s the reason mining costs electricity and many countries that have big mining pools are facing electricity problems , it’s because mining is essentially putting a lot of computers in your backyard and giving it a very hard and complex math problem to fix.
Parham Beikmohammad Delivand