After exploring digital money in our last blog post, let’s dive into what makes it all possible: blockchain. Think of blockchain as the solid foundation holding the entire world of digital money together, much like the structure of a home supports every room. Without it, the promise of cryptocurrencies like Bitcoin and Ethereum wouldn’t exist.
What Is Blockchain?
Imagine a digital notebook everyone can access. Every time someone writes a transaction in it—like sending or receiving money—it gets recorded, time-stamped, and locked. Blockchain is this secure, distributed ledger. Unlike traditional ledgers controlled by banks, blockchain operates across a global network of computers, ensuring transparency and security.
How Blockchain Connects to Digital Money
In our previous post, we compared digital money to cashless transactions like GCash or Maya. Blockchain takes this further by ensuring trust and preventing fraud in digital money systems. For instance, it verifies Bitcoin transactions and prevents double-spending.
Think of it as a playdate: if everyone brings toys, blockchain is the register ensuring everyone knows which toy belongs to whom and tracks borrowing. This transparency avoids confusion and ensures fairness.
Why Moms Should Care About Blockchain
- Security: Blockchain encrypts transactions, making them nearly impossible to alter without detection.
- Transparency: All transactions are visible, reducing fraud and building trust.
- Convenience: With decentralisation, there’s no single authority controlling access, making it reliable during emergencies.
Real-World Applications
Blockchain isn’t just about cryptocurrencies; it’s transforming industries. A recent example is the Philippine Science High School’s (PSHS) Pisay-DigiCert. This blockchain-powered system modernises how student records are stored and shared. Parents no longer need to visit the school to request records, and universities can easily verify credentials.
According to project leader Dr. Joel Bautista, this system reduces storage needs and ensures accessibility even during calamities. This innovation highlights how blockchain can simplify daily tasks for parents and institutions alike.
A Bridge Between Days
As we transition from digital money to blockchain, consider this: digital money is like the car you drive, while blockchain is the engine powering it. Understanding blockchain equips you to navigate the future of finance and technology with confidence.
Stay tuned for Day 4, where I’ll share my personal crypto journey and how blockchain played a pivotal role.
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