IS Blockchain a safe Investment?
Blockchain technology delivers decentralizedsecurity and trusts The technology permanently is new blocks in a linear and chronological order. A majority of the network can change the content of a block after they add it to the end of the Blockchain. That is because each block has its hash and the block's hash preceding it, and the timestamp described before.
a mathematical procedure that converts digital data into a string of numbers and characters creates hash codes. When the network of nodes changes the information on the block, the hash code also changes. Let us imagine a hacker who controls a Blockchain node and wants to change a blockchain and steal the bitcoin from everyone else. If they changed their single copy, it would no longer match the copy of everyone else. When everyone else compares their papers, they will see that this one copy is different, and the system will mark that hacker's version of the chain as incorrect.
To succeed in such a compromise, the Hacker would have to possess and change 61% or more of the Blockchain copies, ensuring that their new copy becomes the majority copy and the agreed-upon chain. assault like this would cost a lot of money and resources since they would have to rewrite all the blocks because the time stamps and hash codes would differ today.
Such a feat would almost certainly be impossible. Members of the network would detect such substantial changes to the Blockchain, it would not go unnoticed. They would then "hard fork" off to a new, unaffected version of the chain. Such change would lead the token's performance to collapse in value, rendering the attack ineffective since the bad actor now has ownership of a worthless asset.
The same thing would happen if the poor guy targeted Bitcoin's fresh split. They constructed it this way because taking part in the network is significantly more profitable than assaulting it or doing bad to it.
purpose of Blockchain
The benefit of blockchain is to enable the recording and distribution of Digital data without changing its forms. In a Blockchain, transactions are immutable distributed ledgers. This approach makes several potential applications for Blockchain Technology. We also know blockchains as distributed ledger technology because of this (DLT).
Researchers initially suggested the Blockchain idea as a research project in the year 1991, and before its first mainstream use of Bitcoin, in the year 2009. The beginning of many cryptocurrencies, decentralized finance (Defi) apps, non-fungible tokens (NFTs), and smart contracts have skyrocketed the usage of Blockchains in the years after that.
History of cryptocurrency
From the year 1998 to 2009, The years preceding Bitcoin Although Bitcoin was the first widely cryptocurrency, efforts to build online currencies with encrypted ledgers have previously been made. Two instances are B-Money and Bit Gold, both of which were envisioned but never completely implemented - the Mysterious man Mr. Nakamoto.
A paper titled Bitcoin “ A Peer to Peer Electronic Cash System was posted to a cryptography mailing list discussion. It was published by someone going by the name Satoshi Nakamoto, whose true identity is still unknown to this day to the world.
2009 “ Bitcoin starts For the first time, the Bitcoin software is made accessible to the public, and mining the process by which new Bitcoins are produced and transactions are recorded and validated on the blockchain starts.
2010 “ Bitcoin is priced for the first time It was impossible to give the developing crypto currency's units a monetary value since they had never been exchanged, just mined. Someone chose to sell their own for the first time in 2010, trading 10,000 BITCOIN of them for just two pizzas. If the buyer had retained those Bitcoins back then, they would be worth more than $100 million at today's pricing.
2011 “ Rival cryptocurrencies appear As Bitcoin's popularity rises and the notion of decentralized and encrypted money takes momentum, the first rival cryptocurrencies appear. These are frequently referred to as ALTCOINS, and they typically seek to improve on the original Bitcoin concept by offering higher speed, privacy, or some other good advantage. Namecoin and Litecoin were among the first to emerge. There are already over
1,000cryptocurrencies in circulation in the world, with new ones developing every month.
2013 ” Bitcoin price collapses. Shortly after the price of one Bitcoin surpasses $1,400 for the first time, it starts to decline FAST. Many investors would have lost money when the price goes to approximately $300 it would be more than two and half years before it hit $1,000 again.
2014 “ Scams and theft came up unsurprisingly, for money established with anonymity and lack of control in mind, Bitcoin has proved to be a tempting and lucrative target for criminals. Mt.Gox, the world's biggest Bitcoin exchange, went down in January 2014, and the owners of 840,000 Bitcoins never saw them again. Investigations are still underway to discover precisely what transpired, but whatever the narrative, someone dishonestly secured a haul worth 450 million dollars at the time. Those lost coins are worth $4.4 billion at today's value.
2016 - Ethereum and ICO This year, one cryptocurrency came perilously close to stealing Bitcoin's thunder as interest in the Ethereum platform rose. This platform makes use of the cryptocurrency Ether to allow blockchain-based smart contracts and applications. The advent of Initial Coin Offerings indicated the coming of Ethereum (ICOs) (ICOs).
These are crowdfunding platforms that enable investors to exchange what are stocks or shares in startup enterprises in the same manner that they can be able to invest in and trade bitcoins. In the United States of America, the Securities and Exchange Commission (SEC) cautioned investors that ICOs may easily be frauds or Ponzi schemes posing as genuine investments due to a lack of monitoring. The Chinese government went much further, officially outlawing them.
2017 “Bitcoin exceeds $10,000 and continues to climb A progressive increase of the venues where Bitcoin could be spent contributed to its sustained appeal, even while its value stayed below prior heights. As new applications appeared, it became evident that more money was moving into the Bitcoin and cryptocoin ecosystem. During this period, the total market value of all crypto coins surged from $11 billion to nearly $300 billion.
Banks such as Barclays, Citi, Deutsche Bank, and BNP Paribas have announced that they are looking into methods to deal with Bitcoin. Meanwhile, the technology that supports Bitcoin “ blockchain has ignited a revolution in the financial sector (and beyond) that is still in its early phases.
