So why have cryptocurrencies, which have been in circulation for more than 10 years, suddenly excited everyone? The answer is hidden in the nature of money: Bitcoin, the highest volume unit of the crypto money markets, broke a record on November 30, 2020 after three years of normal course and exceeded $ 19850. This corresponded to an increase of 8.7 percent, and this year’s increase was recorded over 170 percent.
According to economic experts, the following factors lay behind this record, which is considered very important for Bitcoin, which has a very active value graph:
Institutional-level acceptance and participation increased. Cryptocurrencies are now on the radar of a much wider segment, including traditional finance firms. Institutional investors started to invest in this unit, which they found reliable. Similarly, much more opportunities have been created for investors to play with crypto using controlled exchanges or tools they are comfortable with.
We said existence, price, now let’s take a look at what the Blockchain technology behind all this crypto money system means…
Where is the Blockchain in business?
Blockchain, in the clearest sense, means the registry where all transactions related to a cryptocurrency are kept. For this reason, it is also called the ‘encrypted ledger’.
This system records transactions on many different computers, and all stakeholders involved in the network can see these transactions. It is constantly updated with the data (operation) entries. But here it is separated from any database, because no transaction can be subsequently modified, manipulated, or deleted. There is no single storage center. Many users attribute the transparency and security of cryptocurrencies to this logic.
According to the system, each data entry creates a transaction, and successive transactions create a block. A peer-to-peer distributed system is used to validate blocks, and after receiving approval, the transaction or block is added to the system. The block filled with data is chained to the previous block, which connects them all in chronological order. All these stages are also shared with everyone on the network.
In fact, this system, which is a typical record keeping logic, is used in many different sectors such as health, transportation, science and industry, as well as virtual currencies.
As our lives become digital, it is certain that we will have many more digital notebooks and virtual wallets like this one. So it’s not too late to learn or own! If you are also curious about such concepts, maybe you would like to take a look at our content titled ’10 Breakthrough Technological Developments of the Last 10 Years’…
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