Get Used to Blockchain
Unless you live under a rock, you must have heard the word “blockchain” popping everywhere, now and then. The parent technology behind the infamous Bitcoin. Imagine having the freedom to use your money the way you want without involving banks and their hefty fees or imagine investing your money in mega projects without being a slave to regimes across the globe.
This is what blockchain does, it revolutionizes our lives and the way we used paper money. Blockchain technology is the most important innovation since the internet came into being. This article is all about understanding the world of Blockchain and blockchain is the future.
But What is Blockchain?
To expand our knowledge on Blockchain we must first understand the term Blockchain itself. Blockchain acts as a distributed software network, functioning both as a digital ledger and a mechanism enabling the secure transfer of assets without any breaches. A chain of blocks containing digital information.
It is a twin technology of the internet that facilitates the flow of information digitally, along with facilitating the digital exchange of units with value. It allows the tokenization of land, currencies, and even artistic assets such as expensive paintings and music albums. On top of this users can store and exchange these assets on the blockchain network. It was introduced to the world in 2009 by Satoshi Nakamoto, as an alternative to centralized banking institutions.
Types of BlockChain Technology
While there are several ways in which a blockchain technology can be categorized, broadly speaking, we can fit these in three categories:
- Public Blockchains:
Public Blockchains use open-source software allowing everyone to participate in the network. Everyone is allowed to join with the network having a global foundation.
- Private Blockchains:
Sometimes also referred to as Enterprise Blockchains, these decentralized setups are employed by corporations that want to run their systems on a blockchain, but want to keep their data private. Permissioned, only those who have clearance can access it.
- Hybrid Blockchains:
A mixture of private and public, a public blockchain is used, but a separate chain exists for the private data, enabling the security and power of the public blockchain, but at the same time making data private.
How Does Blockchain Work?
To make it a bit easy for our readers, we have divided the blockchain working framework into three basic elements:
Multiple blocks are tied together in a chain format, with each consisting of three elements, the first element is data present in the block following it comes a 32-bit whole number called a nonce which is randomly generated when a block becomes the part of the chain. This part generates the hash, the block header. It is a 256-bit number wedded to the nonce and it must start with a huge number of zeroes. When the first block of a chain is created, a nonce generates the cryptographic hash. The data in the block is considered signed and forever tied to the nonce and hash unless it is mined.
To enable its most important feature of decentralization, blockchain has a distributed ledger called the nodes. Which is connected to the chain and maintains copies of the blockchain along with keeping the network performing. Each node has its copy of the blockchain and the network verifies by algorithmically approving newly mined blocks added to the chain.
Miners are the third and last element of the blockchain. They create new blocks through mining. A process in which special software is used to solve the extremely complex math problem of finding a nonce that generates an accepted hash.
Potential Development of Blockchain
With the world experiencing innovation on a daily basis, blockchain holds the potential to transform and revolutionize our day-to-day life. This promising transformation will shape businesses, health, education, traveling, and much more in the coming future. Currently used across various industries, blockchain has changed many of them and provided multiple opportunities to the common man across the globe. Some of the potentially developing sectors of blockchain are listed below;
- Real Estate:
Blockchain made it easy for people to have verified property ownership. These verified records cannot be hacked or tampered with. Making it secure for people to trust the blockchain more. Most of the famous real estate companies are shifting to blockchain to attract more audiences and make their business a reliable place for clients.
- Anti-Money Laundering Initiatives:
While many governments see the abuse of blockchain as it is difficult to tie down the digital assets with an entity, blockchain actually has a very strong use in the AML sector. With everything recorded and stored forever, adapting the technology means that every transaction is permanently stored, including information such as who sent money to whom and how much. The trail is stored for the complete chain, right back to the first transaction ever recorded, making it a perfect tool to give a serious blow to money laundering.
- NFT Marketplaces:
If you follow the news or follow social media trends, you might have witnessed the unexpected arrival of NFTs and their sudden reign over the crypto space. NFT marketplaces allow people to buy Non-Fungible Tokens on the internet. These tokens include paintings, memes, music albums, in-sports moments, and GIFs. Today, the GameFi sector is growing rapidly offering character and in-game items as NFTs.
Its Recent Popularity
Its popularity reached new heights when blockchain introduced faster cross-border payments and smart contracts. With these innovative working use cases, blockchain proved to be the undefeated warrior of the 21st century. More and more companies are realizing the underlying capabilities of blockchain. With this understanding, more and more use cases for real and digital life will emerge facilitating the people. With platforms like Ethereum, multiple developers and investors find potential projects to invest in.
Blooming of NFT Games on Blockchain
NFTs have come with a very unique use in the gaming industry. In-game assets like characters, weapons, vehicles etc. are typically within the game only, having no practical value for the user once the game is over.
With decentralized games, these items are now being represented through NFTs, allowing players the ability to buy and sell these outside the game. The rarer an item is, the more price it can fetch. GameFi uses NFTs to breathe new life into games this way. People can not only enjoy being entertained but can create a whole new income source through the trading of these NFTs.
This has led to a massive growth of NFTs being used in blockchain games, creating a whole new trend that is increasing every day.
Lumi World is an open world concept blockchain game that uses the power of decentralization to offer different advantages to its users. An extremely immersive story keeps the users engaged, while different forms of activities like farming, real estate, creating their own businesses, different entertainment options, tournaments and mini games mean that players are never tired of the game.
With in-game items and assets based on NFTs and the ability to earn crypto tokens, users not only get entertained, but earn and own the tokens, which they can use within the game to progress or even sell in the market for real world income.
It is clear by now that blockchain has an exceptionally broad set of potential uses with a promising future ahead, and is transforming faster on a daily basis. From simple technology that assists in transferring digital assets to whole new fragmented economies that run efficiently and now entertainment, blockchain is here to stay.
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