Understanding the Blockchain as a beginner.

Zurlia Servellon

Blockchain is now a buzzword you might hear across all social media channels. If you are having trouble understanding how it works and the idea behind it, let’s discuss it here:

The Blockchain is essentially decentralized technology that allows transactions between peers, eliminating the involvement of banks.

The blockchain network and technologies are rapidly expanding. Each block contains unique information and between many blocks, they form a chain that cannot be manipulated or falsified.

Blockchain technologies supply security and a framework that keeps cryptocurrencies and NFTs safe, without the need to be run by third parties such as banks, or the government, and without your data being exposed or shared. There are many different blockchains currently in the market, and even more cryptocurrencies such as Bitcoin and Ethereum to name a few.

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What is cryptocurrency?Investopedia

What are the benefits of decentralization for people like you?

  • With (Defi) or “decentralized finance”, you have the power to function as a bank—meaning you can earn interest on your cryptocurrencies, and you can borrow and lend money as well.
  • With NFTs, you can earn lifetime royalties on your creations.
  • Your data is safe because the blockchain acts differently than Google or the banks.

Cryptocurrencies explained.

Cryptocurrencies are digital money that runs on the blockchain. Each crypto project has different goals and objectives (called a utility). Some currencies such as Bitcoin or Ethereum run on their own blockchains. This is why these currencies are called coins. Other currencies do not have their own independent chains which are why they are called tokens.

You need an Exchange to get started

A crypto exchange is essentially technology where you can buy and sell cryptocurrencies. If you are getting started, you can look at places such as Coinbase.

A wallet.

A wallet could be physical or software online that will help you store your keys that hold your currencies. It is better to have your crypto in a wallet than keep it in an exchange. The keys are extremely important, without them, you cannot access your crypto. Make sure to never share your key with anyone. It is extremely important for you to keep it in a safe place. Examples of physical wallets are the Ledger Nano and Metamask for software. Software wallets might be at higher risk of being hacked.

If you are ready to buy your first crypto:

  • Do your due diligence and study which currencies you want to invest in.
  • You can buy small amounts of each coin. You don’t have to buy one bitcoin if you don’t have the funds. Fractions of a currency can help you get started.

I hope that was helpful, if you want to keep learning together, let’s connect on social media.

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Zurlia Servellon is a Storytelling Strategist and author who partners with CEOs, executives, and solopreneurs to grow their personal and professional brands using the power of storytelling. Follow Zurlia on Twitter - @Zurliaservellon

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