Blockchain & Cryptocurrency

by Catherine Rasgaitis

Edited by Sahithi Lingampalli, Layout by Sahithi Lingampalli, Artwork by Sahithi Lingampalli

This is a collaboration article with CodefyCS

Blockchain is arguably the most important technology shaping the world of business and finance today. Bitcoin in particular has dramatically changed the way people handle transactions and business dealings. In fact, according to Leftronic, the blockchain industry is anticipated to gain $20 billion in revenue within the next five years.

Why? One of the greatest appeals of blockchain applications is that it provides greater transparency for its users compared to traditional systems that require paper-heavy processes, third-party services, and physical signatures from everyone involved. Blockchain not only eliminates these requirements, but it also prevents serious consequences like human error or fraud.

Furthermore, because of blockchain’s superefficient nature, it removes the necessity of a “middleman,” such as a bank. This means that there are fewer steps to complete a transaction and users do not need to pay bank fees or schedule their time around bank hours.

Essentially, blockchain cryptocurrencies such as Bitcoin, work by using a public ledger that records and verifies transactions. Bitcoin is decentralized, which means that there is no central authority overseeing these exchanges. Instead, blockchain is based on a peer-to-peer network that relies on its users to verify and store data.

This requires the help of Bitcoin miners. When a person wants to send Bitcoins to someone else, Bitcoin creates a transaction block to represent the exchange. After the block is broadcasted to Bitcoin miners, they can verify and approve the block.

To do this, miners solve complicated mathematical puzzles to convert all the information in the transaction block into a shorter sequence of numbers and letters. This sequence is also known as a hash. Each hash representing a transaction is different and it is impossible to tell what data the hash represents solely by looking at it.

In the world of Bitcoin, we rely on miners to confirm and verify every transaction but they also get some rewards in return. Every time a miner successfully mines a block, they receive their own Bitcoins in return.

In short, the ledger system in blockchain cryptocurrencies provides numerous benefits for those who use it. Blockchain itself is continuing to grow in popularity across the globe as more people come to realize how technology significantly improves our lives for the better.

Cryptocurrencies are one of many examples of the ever-expanding world of computer science. If you’re interested in building innovative technology or learning to code, check out our classes at Codefy CS. We teach a variety of different programming languages including Java, Python, C++, and more!