The term “BlockChain” has been exchanged vigorously over the past couple of years; going from an esoteric technical project to mainstream attention very rapidly indeed!
Perhaps you are like me, someone who takes an interest with the world of information technology, and of course the culture this has generated over the past 35 years; just what is this chain of blocks which is spoken of so much?
The simple description is that the blockchain is a database, OK, so another example of a database which underlies the entire foundations of the internet itself, if the world of communication is enabled via networking, then databases also enable the organisation of specialised information and allow us to build various projects that have very specific objectives.
Rather than present technical charts and infographical representation, I am describing the Blockchain in simple terms, there are enough high falutin blogs, and PDF’s doing the rounds!
To fully understand Blockchain, and why people are so excited about this specialised database, we should tackle just what it is, right?
The Blockchain database was being worked with back in the first half of the 2000’s decade, and the now very famous Satoshi Nakamoto developed his idea for a computer based, broadly distributed ‘store of value’.
The core mechanics of this value is bound up with solving Hash Problems.
A computer processor has the ability to process abstruse maths problems, this is because they are designed to precisely work in this way; they are like artificial neurological links, micro switches that recognize 0/1’s in a complex array, they out perform our organic processors, our brains by many multiples of speed.
A microprocessor is nowhere near as ‘smart’ as a human brain, because it can only operate with one dimension of thinking, but this is not really the point.
Our database, our tables of predicted solutions that are agreed on by multiple computers provide a brand new way of generating surety. This is really all you need to know. We are working with one form of assurance that can replace the current one we use with conventional finance.
While the Blockchain developed for Bitcoin has enabled this entire field we now call Cryptocurrency, we also have new ways of betting on outcomes also.
These new gambling strategies are resulting in new financial instruments, and developers are building ‘Bots’ which can help people to predict fluctuations in value changes with all of the various cryptocurrency ‘coins’ that are being released, so that they can invest with these new methods for predicting changes in value. It is rather like a new version of the Stock Market!
From the core functions of the Blockchain project, are coming all kinds of different financial ‘hacks’ and ways of generating revenue, or value propositions.
I would advise caution, don’t simply accept these different strategies without considering your own position, don’t just buy into these Bot communities with their ‘Mastermind’ overlord calling the shots; remember the old wisdom: let the buyer beware.
Do I think there are some good opportunities for the astute punter? Yes, of course, but you need to know the field.
The comparative value of Crypto with ‘fiat’ currency is still the most simple, and assured path, until this changes in some significant way, I would be wary of the clever sounding ‘Bots’, people lose their shirt in this game!