Blockchain is a peer-to-peer distributed ledger technology (DLT) system that is decentralized. It makes the records of digital transactions transparent and unchangeable. Blockchain is a relatively new and exciting technology that has gained a lot of interest from investors. Some think of the blockchain platform as being tied to Bitcoin, but the blockchain is only used to record the vast number of Bitcoin transactions and is an independent technology platform for digital transactions. Here are the important factors to consider before investing in blockchain and the common ways to invest.
Consider working with a financial advisor as you diversity your portfolio into cryptocurrencies and related technologies.
What Is Blockchain and How Does it Work?
A blockchain allows data to be stored and distributed to every member of the blockchain. One thing that blockchain does not permit is for data to be changed. Once it is written digitally on a blockchain, that information will be immutable. It can never be changed.
On Bitcoin’s blockchain, there is a record of every transaction that has ever been made. When you take part in developing a blockchain for Bitcoin, you receive a Bitcoin. But, Bitcoin is not blockchain. Many types of data can be stored on a blockchain including inventories, database information, voter registrations