Questions about crypto and blockchain that you were too shy to ask

Photo by Dmitry Demidko on Unsplash

I know we often postpone learning new concepts, so in this article I'd like to introduce you to an easy-to-understand way to two words you have probably heard in the past few months: blockchain and bitcoin.

We should first clarify that blockchains and crypto assets represent the convergence of technology and finance. This is not just finance, it is not just tech, it’s both worlds merged. 

A blockchain operates as a public record of financial transactions, or a database that stores information in a secure and transparent way.

In addition to recording the purchase and sale of cryptocurrencies like bitcoin, the blockchain can also be used for real estate registration, among many other uses. Regarding cryptocurrencies, blockchain allows the operation of a secure and transparent financial network.

Furthermore, it is a way to circulate bitcoin in a safe and transparent manner, ensuring trust and transparency between transactions. So, that's why blockchain was introduced along with Bitcoin in mid-2008.

In a blockchain, each transaction must be validated by another computer on the network, and this is one of the functions of the technology that ensures user security.

Bitcoin is a decentralized digital currency that does not require third parties to function. It means you do not need a bank or financial institution to move your money, but perhaps bitcoin's most prominent characteristic is its independence from governments. 

No government, no central bank, no country controls bitcoin trading or issuance, and that is why it is so disruptive because with bitcoin (and other crypto), we have a real alternative to geopolitical monetary control. We are witnessing something unprecedented in modern history.

Nobody knows who invented all of this. In October 2008 (at the height of the subprime crisis), a person using the pseudonym of Satoshi Nakamoto published the Bitcoin White Paper, explaining how the system would work.

There are numerous theories about who Satoshi is, including the popular theory that blockchain and bitcoin were created by a team of developers, not a single person.

When it comes to new and disruptive technologies, we are all learning, and I hope this article clarifies some  concepts behind bitcoin, blockchain, and crypto in general. 

The next article in this series will explore the world of cryptocurrencies and discover the most popular digital assets affecting our everyday lives, as well as how countries deal with the threat of a decentralized monetary system.