Hooooo-boy! With the wild swings in the cryptocurrency markets, you can be darn sure that the topic is going to come up at even the most traditionally mundane holiday barbeques this weekend.
Lucky for you, we complete our two-part series on need-to-know blockchain terms. They are designed to give you an “in” when talk turns to tech.
Before you get started on the below, be sure you’ve taken a peek at Part 1! Without further ado, here we go:
Peer-to-Peer or “P2P”
One of the (many) genius aspects of blockchain is the way it enables and encourages direct interaction between two interested parties. This peer-to-peer ability means any two parties can access one another to complete a totally secure and verified transaction. By dealing directly with one another, they can avoid tapping or sharing information with a centralized database, and can skip any middle man (like a central bank).
One of the innovative P2P applications of blockchain is the rapidly growing development of smart contracts. These contracts are entered between two parties and recorded in computer language instead of legalese. These contracts can be executed in nano-seconds on a distributed ledger. Because they cannot be modified there is little gray area once terms are locked in.
The confirmation is issues when a transaction has been verified on the blockchain. Confirmation ensures that transactions cannot be reversed or edited and items of value, like cryptocurrency, cannot be duplicated or double spent. As more confirmations are added to a blockchain, it becomes virtually impossible for those will ill intent to launch a double spend attack.
Simply, this is the work process that verifies and adds transactions to the blockchain. Performed by high-powered computers, a small fee, paid in cryptocurrency, is earned by those who operate the mining hardware. The nuts and bolts process of mining requires the computer to solve complex cryptographic problems. (Hey, more math!)
The glossary could go on-and-on, and we will expand down the road, but between Part 1 and the info above, you should be ready to talk the block as we launch into summer!