Guide To Blockchain, Proof-of-Work And Proof-Of-Stake Explained

in #hive2 years ago

What is Blockchain?

Blockchain is a distributed ledger technology that can maintain a record of ownership and transaction. It's composed of blocks, each block containing data like the sender, receiver, and amount. Hive is a blockchain and also a crypto token. This is confusing too many new users, including me at first. A token and a network with the same name is the simple answer.

Blockchain is not just for cryptocurrencies like bitcoin or hive. There are many other use cases for blockchain outside finance, such as in supply chains or in intellectual property. These use smart contracts and once you create one, the blockchain will enforce the rules of the contract, sounds cool.

The blockchain will create immutable records that cannot be tampered with or altered easily. It can help automate processes and cut down on paperwork while also making them faster and more efficient. Unlike banks that still require one or two days to transfer some money or pay a bill.

What Are The Differences Between Proof of Work And Proof Of Stake?

Proof of Work and Proof of Stake are two ways that a cryptocurrency’s come into existence, or mined. How this works in real life is a system where people donate their computer's processing power to solve math problems in order to verify transactions on the blockchain.

Proof of stake is a system where the people holding coins in a cryptocurrency wallet can "stake" them by locking them up and letting their weight in the network determine how often they get to mine new coins. By voting on content, you are mining new coins.

Blockchain Explained in 10 Minutes or Less

Blockchain is a continuously expanding database that contains information on every transaction of the cryptocurrency. We do not store this database on just one machine, but copied too many servers throughout the world. Each time we added a new block of data to the chain, it gets encrypted and distributed to all the machines in the network.

The first known use of blockchain technology was by Nakamoto Satoshi in 2008 for creating an electronic payment system using digital currency, which he called Bitcoin. The Guru's behind Hive development as far as i know is the team @blocktrades

The idea behind blockchain technology is like that of a ledger with records of transactions being added periodically and maintained over time through verification by consensus.

Does Blockchain Have Any Disadvantages? What are they?

Blockchain has many advantages, but it also has disadvantages. The following are some disadvantages of blockchain technology.

  1. Bitcoin mining costs too much electricity.

  2. Bitcoin is difficult for the non-technical people to understand

  3. Blockchain is slow and expensive to transmit data.

Conclusion

So now that you know a bit more about this tech that we use every day, hopefully you will have a bit more confidence in this new so called magic money that gets air dropped from somewhere, watch out for a new airdrop coming from a new project made by @theycallmedan and his team. I think it's a game. I love blockchain games.

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This was really good.

Something something Ragnarok something.
Should be good. Switched on dudes with deep pockets and a clear example of what works.

I am sure the announcement will be epic.

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