As I opened the door to my balcony in the early hours of the morning, a gush of cold winds swept across my face, and every bit of my lazy senses awakened, and I was ready to embrace the new day.
Standing on the balcony, as I watched the pretty flowers and leaves of my plants sway to the morning breeze, I felt a little relaxed and allowed myself the time to soak in the beautiful morning vibes. I was lost in my thoughts and was almost about to believe that life indeed was just this simple when my father brought me back to reality!
He is all set to start investing in cryptocurrency and is ensuring that all of us are equally enthusiastic about it.
(P.S.: ever since the budget has been announced, my father has immersed himself in the experimental phase).
My mother is not. She has been taunting him with the experiences he has had with online fraud.
My siblings do not even want to listen to anything remotely related to cryptic or currency.
I was not given a choice.
My senses were scarred!
The blockchain-cryptocurrency dilemma
When I asked my father what cryptocurrency was and how it worked, he said many things that went straight over my head. Which I guess must have happened with many of you when you first heard about it. So, I asked him to slow down and explain it to me in a way that I could decipher and, most importantly, associate with.
My initial confusion was that we already use online transactions, so how does cryptocurrency make it different. So, he explained, very patiently, that cryptocurrency was digital money that did not involve banks or cheques or debit and credit cards for transfer and access. He stressed that this digital way of dealing with money would ensure that we do not pay online handling fees or other additional costs incurred during online transactions.
Basically, cryptocurrency aims to give people more control over their money than the government, banks, or any other agencies controlling it. Along with it, cryptocurrency is projected to solve the issues and limitations that traditional money creates.
It is projected as promising.
At this point, I was intrigued but still clueless, so my father explained why cryptocurrency was promising.
The fact that cryptocurrency worked based on blockchain technology made it worthy of our attention and trust.
Finally, it was time for me to delve deep into blockchain technology and become aware of the process everyone was talking about and praising.
There are so many details and transactions that we make on a daily basis, and it is imperative that all such data are stowed away not just securely but also in a manner that they are easily accessible.
The traditional methods of maintaining ledgers and registers of financial accounts make it prone to hacking, loss of data, or even manipulation. Each of us has numerous records of such data, and whenever we are in need of scrutiny over them, there are more than often situations when things turn unpleasant. Moreover, there are often struggles regarding certain aspects associated with transactions or transfer of account operations.
Blockchain is slated to solve these issues and create a more secure and hassle-free database for all such data and more.
Blockchain is a technology that incorporates a database system into which such ledgers containing all the details are stored digitally and accessible to everyone made part of the ledger network. The technology is enabled with the power to secure and make transparent all transactions and processes pertaining to records like finances, properties, and much more.
Blockchain will decentralize authority and access, making tampering or hacking next to impossible.
It basically contains numerous blocks, each storing specific data, all tied to one another in a sequence unique to them, making a particular blockchain trustworthy.
Simultaneously, some unique codes or fingerprints are required to identify a specific block in a blockchain sequence, ensuring that only the blockchain owners have access to it.
To maintain the trustworthiness of blockchains, they are made public, where numerous members have access to the blockchain network. So, whenever a new member is added, or previous members make changes, every existing member is alerted and asked to verify the unique sequence of the blockchain. All these ensure that tampering is stopped, and in case there is any kind of mischief, the network rejects the tampered or unsecured block.
Looking forward to a more digital future
To be honest, I did have a lot to process, and I am sure you all do too. It’s okay to take time and feel prepared before adjusting to the new changes, which will happen down the line.
Blockchain and cryptocurrency are the trending pair of the time, and it does sound promising. Yes, we do need more knowledge before exploring further, but I feel that we must at least be open to the new concept and the changes it promises.
Remember the times when we had just started with online transactions and were getting accustomed to OTPs and CVVs. It is just like that once again.
The process would be different, but we need to believe that blockchain would be dismissing the limitations and manipulations of online transactions and traditional finances.
We have to trust the technology and the process.
We have done it once. We shall do it again.
Till then, we need to keep learning and relearning about blockchain technology and how it is more secure. In fact, in my next blog, I plan to write about how blockchain will be innovative and restructure our abilities to control our lives and their decisions.