24 C
Lagos
Tuesday, July 14, 2020

Understanding the Technology Behind Digital Currencies

- Advertisement - data-full-width-responsive="false">

Digital currencies and assets have become more popular of late and the reasons for that are multiple. Some people just want to be part of the crypto movement, while others are heavily reliant on digital currencies to protect their wealth, such as unbanked populations and those using Bitcoin to seek refuge from hyperinflation.

This popularity has led to more businesses and service providers to accept them as a form of payment. From KFC to Canadian tax authorities, the number is continually growing and further businesses are set to get involved.

- Advertisement -

Some businesses are waiting for the market to be more popular and regulated before offering to accept cryptocurrencies, within the online casino market, RoyalVegas CA is one such example.

Digital Currencies Using the Blockchain

The technology behind such a revolutionary trend is not as confusing as you may expect. Many digital currencies, including Blockchain the most successful to date, rely on blockchain technology.

The name blockchain derives from the words block and chain – exactly what a blockchain is. It is a chain of blocks, each block representing an item of data.

When a transaction is made with digital currencies like Bitcoin, the transaction is authenticated and verified before being added to the blockchain.

These chains of information are in the public view and cannot be adjusted, meaning they are present, public and permanent.

So, Who Verifies Payments?

Miners must record payments on the blockchain and verify them. This is now usually done by supercomputers on large mining farms. The work done by these computers takes over the work done by banks.

Due to no central authority being involved like at a bank, this is what makes digital currencies decentralised – and it is also what makes them a radical and revolutionary product on the current financial landscape.

Is the Technology Safe?

As mentioned, blockchain technology is exceptionally secure. Once a payment is made and it has been verified on the blockchain, it cannot be altered under no circumstance. It will forever be stamped within the chain and remain available for anyone to see.

Advertisement
data-full-width-responsive="true">

This has not stopped people from losing money by investing in digital currencies. More often than not, this is because of a poor investment strategy or insecure goings on elsewhere.

For example, the exchange platform – a place where you exchange fiat currencies and digital currencies – and the wallet you keep your coins in could be insecure or hacked.

This technology may have flaws but there are ways and products that will keep your digital coins safe.

Are Blockchains Only for Digital Currencies?

Just like an acceptance of cryptocurrencies is spreading to fast-food chains, government departments and online casinos, so are blockchains.

Different industries are implementing blockchain technology for their own benefits away from financial means.

For example, some cars are communicating with a blockchain to record its accurate history and reduce odometer tampering and seller fraud. The use of blockchain, just like these digital currencies themselves, is rising.

- Advertisement -
- Advertisement -

Trending Now

Top 4 Cars of 2018 in the Hit List

At present, you can find a lot of cars according to your needs and budget. The ranking of car doesn’t depend on its make...
- Advertisement -

Startimes Subscription Prices, Packages and Channels List in 2020

StarTimes Nigeria is one of the popular cable TV providers in Nigeria. This service is a subsidiary of a Chinese based company called Startimes...

10 Best Places to Download Bollywood Movies

Do you spend hours watching Bollywood movies as I do? Have you been in search of the perfect sites to download the best Hindi...

GB WhatsApp Pro, OG WhatsApp Pro V8.10 (GB OG Replacements) Latest Version

Good day peeps, the latest GBWhatsApp is here... and it is called the GB WhatsApp ProRemember earlier, GB Mods the maker of GB WhatsApp...

GB WhatsApp, WhatsApp Plus and OG WhatsApp Tips and Tricks

Checkout the new GB WhatsApp Tutorial.Hello, welcome to WhatsApp Plus, OG WhatsApp and GB WhatsApp tips and tricks. For the sake of this article,...

Best Low Size PC Action Games For Your Old PC/Laptop With Low Specs

Gaming time is one our favorite time and nothing beats the ability to play high-quality games on our PCs but like some of our...

How to Fix Home Key, Recent Key and Notification Bar Not Working?

There is a bug in the Android OS that dates back as far as the Lollipop Version and it is one of the most...

7 Best Offline Racing Games for Android Users in 2020

Are you a real gamer? If you are one, then you will know how exciting it can be to experience the adrenaline rush that...

5 Best Blood Pressure Apps for Android

Blood pressure is the pressure the blood applies that on the walls of the vessels they use in travelling. There are two conditions relating...

5 Best Under 15,000 Naira Smartphones in Nigeria

Smartphones are currently like the way of life today, and everybody needs one of them devices. The need to stay up to...

Screen to Body Ratio: 22 Smartphones With the Highest Screen to Body Ratio in 2020

Screen to body ratio on a smartphone screen recently turned into an important thing to consider when comparing smartphones. It became more important after...
- Advertisement -

Related Posts

Google Glass Comeback: Finally Finds An Ideal Use Case

The Google glass as we all know has joined the ranks of gadgets which failed to build a reputation among the consumers because of...

Most Essential Gadgets and Widgets for Bloggers in 2020

All it takes is a ladder and a deep commitment to the rooftop. The heat from all the blogging competition was supposed to die...

Vivo V17: Meet The Smartphone With Hexa Camera

Vivo is busy this month trying to set the pace for other smartphones to follow, and this is evident in the Vivo V17 smartphone....

Top 5 Blogging And Social Media Cameras With Wi-Fi in 2020

Anything can be achieved with the right imagery and whatever does not have the hands of nature in it is dead. Are you a...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.