Here are some primers about blockchain and related topics explained in a simple language.
- What is Blockchain?
In a simple word, Blockchain is to record information in an unhackable and irreversible system. Its immutable and time stamp features are validated through bitcoin or other cryptos by peer-to-peer work.
- What is the potential business application of blockchain?
The advantages of blockchain such as unhackable, transparent, timestamp and decentralization are the most crucial elements for some industries, arts, sports and entertainment, not-for-profit organizations, healthcare, supply chain, finance, gaming etc.
- What is Bitcoin?
Bitcoin is a decentralized currency that can be traded among users through a network without any intermediate.
It was designed by Satoshi Nokamoto in 2009 with a total supply of 21 million units and with less than 3 million units left so far. There are 6.25 bitcoins to be mined every 10 minutes in 2021 and it will be cut into halves every four years. It will become extinct by 2140 (according to wikipedia).
- What is the difference between Blockchain and Bitcoin?
Bitcoin is one of blockchain applications in finance industry and also one of cryptocurrencies.
- How many cryptocurrencies are there as of 2021?
There are more than 6000 crypto currencies in the world.
- Is there anything else that can be done in blockchain?
NFT is another successful business application of blockchain.
- What is NFT?
NFT stands for non-fongible token which is a certified ownership of a digital document—a picture, a video, an audio and 3D scanning. It is mostly traded in cryptocurrency or utility tokens.
- Why has NFT become so popular?
It gives content creators great access to worldwide art trading without any middleman or travelling around.
- Why does Bitcoin’s price keep increasing overall?
Bitcoin price has surged from $1 ten years ago to over $66000 as of today because of scarcity, in another word, demand and supply in the market.
- What is metaverse?
It is a conceptual virtual 3D world where people can do the same or different from the real world.
- What is web 3.0?
It is a decentralized and shared open source database where everyone can be contributing, benefiting and governing.
- Can I issue a coin?
Yes, you can. However, it is highly regulated security in need of a lot of paperwork and process such as compliance and government licence. It also requires a highly skillful blockchain technical team on the development as well as a good marketing team to push your information to the market.
What's the difference between a coin and a token?
A coin is built on an independent blockchain and it needs compliance, expertise, and technology but it can be traded on some blockchain exchange platforms. But a token can be issued on an established blockchain or platform which is responsible for the compliance and technology. The token issuer needs to understand the token mechanism and market it to achieve the business goal.
- What is a smart contract?
A computer program preset to execute actions with the agreed terms automatically. It is usually imbedded in blockchain platform or it can be customized based on the business needs.