Hello, this me. A man struggling hard to get a grasp of the happenings around him. Prior to June 2020 I have Always heard about cryptocurrencies and blockchain, I figured they were something alien so outta this world but recently I realized it wasn't to distant anymore. The take over is already here, the revolution happening right under our noses.
However, as a newbie terms like Cryptocurrencies and Blockchain is so overwhelming. The jargons further confuses someone who isn't computer literate or worse economically sound.
CRYPTOCURRENCY
This beginning was so mystical that the first announcer is yet unknown. I mean nobody knows who Satoshi Nakamoto is, IN THIS DIGITAL AGE? C'mon!!! This same announcer sent series of mails across to tell them that he/she/it has succeeded in an area they have been failing for years (Digital cash), yet no one has been able to trace that mail?
Forgive my ignorance, but this Peer to peer network for file sharing that he found a way around, isn't that the same thing Mark Zuckerberg found with Facebook? If it isn't what then is the difference?
The more I think of it now the more confused I become.
I like the fact that cryptocurrencies has removed the middle man (Banks) from the picture which is amazing. The banks in Africa for instance have prided themselves too much and have suddenly become untouchable I almost feel they weren't regulated at some point. The banking fee became outrageous, one had to pay whether he used that service or not so long as you bank with them your affected. Illegal deductions, false debit actions even when the deal wasn't done.
Also, there was the issue of being rubbed at gun point by hoodlums who'll follow you from the bank till you get to secluded area before pouncing on you. Some don't even wait till you leave the Automated Transaction Machine. I need not mention police extortion whereby to avoid being extorted you're led to an ATM to pay them most times everything in your account or experience first hand brutality. All this can been averted with the use of cryptosystems. However, what then is this cryptosystem?
Funny enough, many who you'd think should have answers often leave me confounded even more. These has given me the impression that no one fully understands the Cryptocurrencies.
But Then I Was Wrong
A careful study deeper and then I learnt these using this image.
So I have fiat money...
• I request the purchase of a currency using peer to peer network called NODES, i.e A to B point of sale (Eliminating the middleman).
• The network validates my identity to make sure i am not fraud and also that the issuer is validated too. In other words, I get my identity recorded in the network and the issuer sees me valid enough to release the currency and I'd get my virtual funds.
• After verification, my request (Transaction) is added to in a single block of details. This block is the ledger (receipt like the banks ask for). This block is chained with other blocks (transactions) of other request (Transactions) and this chain is then the term called BLOCKCHAIN. This chain cannot be tampered with or altered and it is transparent
Every transaction is added to other list of previous transactions. For me with these I have been able to understand the terms cryptocurrencies and Blockchain.
I hope this helps someone.
I also hope if I missed out anything, the gurus in the house can guide us the newbies further.
THANK YOU FOR READING