Beginners Guide to Blockchain Technology, Enjoy! 💥

Blockchain technology is a system of recording and storing data in a distributed, secure, and decentralized ledger. It is a chain of blocks, each block containing transaction data, such as details about the sender, receiver, and amount of cryptocurrency transacted. Each block is cryptographically secured and linked to the previous block, forming a chain. This chain of blocks is shared among a network of computers, which constantly verify and update the data stored in each block. This ensures that the data is always up to date and secure from tampering or unauthorized access.

Blockchain Technology Use Case ( Applications)

Supply Chain: Blockchain technology has been used to increase transparency and efficiency in the supply chain industry. It can be used to track the origin, movement and destination of goods, as well as verify the authenticity of products in the chain. This ensures that businesses have a complete view of the supply chain, making it easier to identify and tackle problems. 

Real Estate: Blockchain technology can be used to transform the real estate industry. It can facilitate faster, more secure and more cost-effective transactions, as well as streamline the process of exchanging property titles. Smart contracts can be used to automate processes such as payments and documentation, reducing the need for manual labor. 

Asset Tokenization: Asset tokenization is the process of creating digital representations of real-world assets and representing them on blockchain technology. This process can be used to make assets more liquid, transparent and secure. Asset tokenization can also be used to facilitate access to capital markets and reduce costs associated with asset transfers.

Decentralized Finance (DeFi): is a form of financial technology that operates independently of any centralized authority. It is a subset of the larger blockchain and cryptocurrency industry that utilizes smart contracts and other decentralized applications to provide financial services such as lending, borrowing, trading, and asset management. DeFi seeks to create an open, transparent, and equitable financial system that is accessible to anyone with an internet connection. Foe instance, following sports teams are collaborators of DEFI : 

1. OKEx sponsors the Leeds United Football Club 

2. Huobi sponsors the Guangzhou Evergrande Football Club 

3. Binance sponsors the Liberty Professionals Football Club 

4. Bitfinex sponsors the Valencia Football Club 

5. Gemini sponsors the Brooklyn Nets Basketball Club

Token Economics: Token economics is the study of economic incentives and how they are used to facilitate the use of blockchain networks. It examines how different tokens are created, distributed and used as a form of incentive for users to use the network. It also looks at the overall incentives for users to participate in the network, and how the network’s design affects the incentives for different participants. 

Non-Fungible Tokens (NFTs): Non-fungible tokens are unique digital assets that are stored on a blockchain. Unlike Bitcoin and other cryptocurrencies, which are all interchangeable and have the same value, non-fungible tokens are all different, like snowflakes, and each one has its own distinct value. Examples of non-fungible tokens include collectibles, digital art, game in-app items, virtual worlds, and more. They are often used as a way to represent ownership of something digital, and can be bought, sold, and traded like any other digital asset. Some Hollywood celebrities who use NFTS include Will Smith, Ashton Kutcher, Snoop Dogg, and Paris Hilton.

Cryptocurrency Investments:  are typically conducted through online exchanges, where investors can purchase coins or tokens. Retail investors typically make small investments in cryptocurrency, while industrial investors tend to make larger investments in cryptocurrency. Many investors use cryptocurrency as a speculative investment, hoping to make a profit from the fluctuating price of coins and tokens. However, some investors use cryptocurrency as a long-term store of value. 

Cryptocurrencies are digital currencies that exist independently of any government or bank. Examples of cryptocurrencies include Bitcoin, Ethereum, Litecoin, Ripple, and Dash. They differ in terms of their transaction speed, security, cost, scalability, and the algorithms they use. Bitcoin is the oldest and most well-known cryptocurrency, while Ethereum offers a platform that allows developers to build and use decentralized applications. Litecoin is a faster and more cost-effective alternative to Bitcoin, while Ripple is designed for international payme etcnts. Finally, Dash offers enhanced privacy and speed when compared to other cryptocurrencies. 

The following are reputable and trustworthy crypto exchanges: 

1. Coinbase

2. Kraken

3. Binance

4. Huobi

5. Bitfinex

6. Gemini

7. Bitstamp

8. Bittrex

9. BitMex

10. OKEx

11. Altcointrader.co.za 

12. EasyEquities 

13. Deriv

These exchanges offer a similar service, transactions through crypto wallets - digital wallets used to store, send and receive cryptocurrencies like Bitcoin, Ethereum and more. They differ from traditional wallets in that they are not physical wallets, but rather a piece of software that stores private and public keys, interacts with different blockchains to allow users to send and receive digital currency and monitor their balance. Wallets also provide a user interface to manage the user’s funds and can be used to store several popular cryptocurrencies. Different types of wallets provide different levels of security, depending on the type of wallet and the technology used. Hot wallets are connected to the internet and allow users to quickly and easily access their funds, while cold wallets are not connected to the internet and provide extra security by keeping the user’s funds offline.

How Retail and Industrial Investors Benefit ROI from Blockchain Investments

Mining is the process of validating cryptocurrency transactions on a blockchain network. It is done by computers that solve complex mathematical problems to verify the validity of transactions a miner ( computer owner ) earns a commission for participating thus attaining ROI. 

Staking is a process by which a user can earn rewards for holding a certain amount of cryptocurrency for a certain time period. The user locks up a certain amount of their coins, and in return, they receive a certain amount of rewards. This can be done with most proof-of-stake (PoS) cryptocurrencies, such as Ethereum, ROI attainment secured. 

Hodl stands for "Hold On for Dear Life" and it is a term used in the cryptocurrency world to describe the strategy of buying and holding a particular cryptocurrency over a long period of time, regardless of any price fluctuations in order to target positive ROI same timing hedging against inflation. 

What Role Do Banks Play in Blockchain Technology?

Banks play an important role in blockchain technology, as they can help facilitate transactions, provide liquidity, and offer services such as secure storage and custody. Banks are also exploring the use of blockchain technology in order to streamline their internal processes and improve their tracking and recording of data. Other services that banks have started to explore include providing access to public blockchains and providing oversight of regulated digital assets.

There are a number of banks that support blockchain and DeFi adoption, including Bank of America, JPMorgan Chase, Citigroup, Goldman Sachs, Barclays, and UBS. Additionally, a number of smaller banks such as Santander, BBVA, and ING have also begun to explore blockchain and DeFi adoption.

Tlokotsi Potloane 

CodeBurst, Merafocoins Stakeholder

trnchmnngrg@gmail.com 

Founder and Managing Director

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