Blockchain projects are distributed databases that are shared through nodes of a computer network. This blockchain technology stores a lot of digital info there, especially cryptocurrencies and NFTs. There are many curiosities and interesting tips to learn about this trending system.
1- It Already “Existed” In the XX Century
Both Bitcoin and blockchain technology were created by a group of people under the pseudonym of Satoshi Nakamoto. The first research project related to the use of this technology was already around 1991. But it wasn’t until 2009 when it got its first widespread use thanks to the cryptocurrency Bitcoin.
2- Blockchains Have Not-Traceable Systems
A blockchain’s main goal is to allow digital info to be distributed and recorded, but it cannot be edited. This technology is the main foundation for immutable ledgers or records of certain transactions that cannot be deleted or altered.
Since its first use with Bitcoin in 2009, it has explored new paths with the creation of DeFi applications, non-fungible tokens and smart contracts.
3- Malta and Gibraltar Lead the Blockchain Trend
People are getting into the world of blockchains more and more everyday, and some countries have joined the trend too. Territories like Malta and Gibraltar, along with Switzerland are the most crypto-friendly nations in the world.
Switzerland also has the most stable market when it comes to crypto, and accepts blockchains and different cryptocurrencies. Fiscal services commissions were established in Gibraltar to easen trade for cryptocurrencies, being the first one in the world.
More countries are also realizing that the safe, friendly and secure environment of blockchains is worth it. Many of the greatest economic powers are planning to launch their cryptocurrencies. United States, United Kingdom, Japan, China or Korea, for example.
At the opposite end, some countries like Turkey don’t allow this type of payment. Others completely ban it, like Nigeria. One of the most important ones has happened recently in China, where financial institutions were banned from providing crypto service.
4- Almost Everyone On Earth Will Understand It in 10 Years
Blockchain technology has become one of the most trending tech of the last few years, gaining huge popularity in the last few years. Many surveys noticed that a great portion of people are starting to understand what it is, while others are already implementing it.
These numbers are expected to keep growing at an extremely fast rate, reaching at least 80% of the population in the next decade.
Many organizations and companies also have started to embrace different digital currencies as forms of payment, to avoid the complexity of traditional ones. These transactions are more simple and allow a quick exchange globally.
While it’s still in a constant developing formative stage, many have already switched to this technology. It is expected that the blockchain market will surpass the $60 millions after 2024.
5- They Bring Transparency and Efficiency
With a non-stop increasing list of countries that are adopting this technology, it shows the benefits of its transparency and efficiency.
Estonia is one of the best examples of this. They’ve been using the KSI blockchain for different government services with total success. Digital health records, laws database, banking and business registration are among those used services.
The Indian government has also started to develop what they call the “National Blockchain Framework”. It’s still developing while exploring different government applications across certain sectors of the state.
Blockchains not only bring transparency to countries, but also to international organizations and business. NATO and the World Bank adopted a blockchain for various applications, meanwhile big companies like Accenture and Microsoft teamed up to create prototype projects.
6- Currency Is Limited
Most of the cryptocurrencies (for example Bitcoin) are limited, or finite in supply. This means there’s a maximum amount of coins for circulation. Some do not have a limit, but do have one for how many can be generated in a year.
The process of creating cryptocurrency is by building a new blockchain or through the process known as “mining”. Modifying an existing process is called “fork”. Famous altcoins are actually forks created from the Bitcoin protocol.
The process of mining is a highly competitive market, and requires high-end computers and technology to do so.
7- Blockchains Can Be Either Public or Private
There’s no norm about blockchains being public or private. Since there are no restrictions, anyone can be part of it, leading to hugely increasing the quantity of trades.
There are some cons related to public blockchains, though. Confirmation procedures can take a bit longer, meanwhile personal blockchains are quicker. This happens because the latter ones are controlled by only one thing, and trades are ready to be done faster.
8- Cryptocurrencies Have Different Taxes
There isn’t a lot of guidance when it comes to cryptocurrency regulations and taxations. Still, there was an issue published in 2014 where it said it was going to be treated as property for federal tax purposes by the Internal Revenue Service.
Owners of crypto also need to track their basis. When it is exchanged for different goods and services, a percentage of taxable transactions occurs. Among these taxable transactions events like coin to fiat sale, coin to coin swap and other purchases are included.
9- Transactions are Not Completely Anonymous
Many people, especially beginners and newcomers, think that blockchains and cryptocurrencies are anonymous payments. This is not completely true, since blockchains record public access of wallets. Still, it abstains from disclosing the owner’s name.
That doesn’t mean that cryptocurrencies cannot be traced. In case of illegal purchases, if the wallet’s name is linked to a real person’s identity it’s possible to trace the whole blockchain related to the address.
10- Crypto Means Hidden
One of the least known curiosities about blockchain and its related topics are its etymologies. The cryptocurrency word comes from a combined form of words. “Crypto” is a prefix which means hidden or secret. It has many uses in the world related to medicine and science, and also in technical terms.
Its origins come from the Greek word “kryptós”, which means hidden. Crypt also derives from the original word.
11- Pizza Was the First Blockchain Transaction
The first commercial Bitcoin transaction happened in 2010, when a man called Laszlo traded his bitcoins in order to buy two pizzas from Papa John’s. This happened when their value was around $40, before they were a real thing globally.
Considering the value of each Bitcoin today (over $46k), those two pizzas would have been the costliest pizzas of all human history. Crypto related fans started celebrating the Crypto Pizza Day in order to commemorate the commercialization of cryptocurrencies every May 22.
12- Cryptocurrency Isn’t the Only Blockchain
Cryptocurrency isn’t the unique system based on blockchain projects. Non-fungible tokens, commonly known as NFT, are also blockchain-based tokens that are used to represent a unique thing. This is a very wide concept which includes art, media or digital content.
13- Blockchains Aren’t Invulnerable to Attacks
Since they are transparent and very effective, many people think this technology is like an impenetrable fortress against cybercriminals. There’s no system or database 100% invulnerable, no matter how secure it is.
Still, blockchains offer many resources to apps in order to detect and capture non-authorized changes inside the registry.
Conclusion
There are many misconceptions, myths, facts and curiosities about Blockchain that people believe or don’t know, all related to the subject. This mostly happens since it’s something relatively new to people, although it has been gaining a huge reputation during the last years.
Learning about the topic will be fundamental for the future since it will shape many businesses, technology and markets.
