What is Blockchain: The technology behind cryptocurrency?

Timothy Nguyen ’23

In 2020, the concept of cryptocurrency has once again experienced an immense growth in popularity. Phrases such as “Dogecoin to the moon” have played major roles in Cryptocurrency’s exponentially increasing interest in modern-day society. And with this newfound interest in cryptocurrency comes the question, what makes cryptocurrency a reliable currency in the future? To answer this question, I would like to explain to you what Blockchain, the technology behind cryptocurrency, is. 

Blockchain is a digital ledger, or in other words, a program that records economic transactions. It is a system of multiple blocks that each contain an individual’s record of transactions. Furthermore, each block is “chained” to another block, which grants every block the information that is gathered from all of the other blocks. This allows for the Blockchain system to notice any unauthorized transactions, or tampering from a hacker. Another amazing quality of Blockchain is its transparency towards their users.

Due to the fact that each block is technically owned by multiple individuals’ devices, it permits all of the users of the blockchain access to the knowledge of where every single currency was to be exchanged. This means that if someone really wanted to, even though it may take hours, possibly even days, he or she could track a coin by going through the numerous transactions made with that coin. But most importantly, this transparency makes the user feel included in the whole process of the transaction, and not worried about any hidden fees.

All in all, Blockchain can be regarded as the reason why Cryptocurrency is so enticing as a possible future currency. With Blockchain, the way we make transactions will be completely revolutionized. If you would like to learn more about Blockchain, please check out this article from Investopedia: “Blockchain: Everything You Need to Know”. It explains in great detail how Blockchain compares to our modern-day banking system, and further explains the decentralized nature of Blockchain.

SR~Dailey