) Why Should You Care About Blockchain?īlockchain is different and exciting because the database it creates isn’t stored in a single, central location. There are more in-depth explanations of the cryptocurrency process if you’re interested or want a deeper understanding of the process works. Cryptocurrencies are not impacted by governments or banks unless members of either body purchase large quantities or sell their coins and impact the market price.īut, the cool thing about blockchain technology is…if they do sell it or buy it, there is a public, permanent record of that transaction in the blockchain history of those coins. All of these and more influence what your US dollar is worth. They can lower the value by printing more money. Even how you use your money within the system is controlled by banks and governments: frozen accounts, rejected payments, etc. With fiat currency (like the US dollar) the control over the supply and value of the currency is controlled by banks and governments. A “wallet” is a program designed to let you hold your crypto coins in a safe, private digital space. No government, for example, could stop you from making a transaction in the cryptocurrency space, or restrict you from accepting a payment (beyond regulating your access to cryptocurrencies by blocking or restricting access to wallet software. This permanence is both powerful and intimidating. Once a miner confirms a transaction, that transaction is recorded permanently, forever, for all time on the blockchain. One: Transactions can take place on a global scale almost immediately, regardless of the location of both parties–and it takes place more or less anonymously…Your real-world identity isn’t linked to your public key.Īll of your transactions occur under this string of numbers, known as a public key, but you can’t identify who the real-life person is just by looking at their public key alias. There are several fascinating elements to cryptocurrencies and blockchain. There are only so many coins that can be “ mined.” And each coin is harder and more complex to mine than the last, which limits how many can be mined in a given time frame. Once a block is added to the chain, every peer on the network then gets a record of this transaction. The miners need to solve very complex cryptographic puzzles in order to confirm transactions, and that’s when they’re rewarded with the cryptocurrency token (hence the “Crypto”…the currency-earning process is inextricably tied to cryptography). The pivotal next step after the signing is confirmation. That transaction is authenticated by Grognak’s private key. This database shows every single transaction that has ever taken place, and also shows the balance of every account. Every peer on the network has access to the record database. Here’s (Basically) How Cryptocurrencies like Bitcoin Work:Ĭryptocurrencies rely on a network of peers. What he came up with involved blockchain and bitcoin. The creator(s) of bitcoin was trying to build a digital cash system that operated in a decentralized fashion (something people didn’t think was possible). Some of them are serious, others are less so.Ĭryptocurrencies were a byproduct of the solution for a tangential challenge. There are also hundreds of cryptocurrencies available. It’s decentralized (there is no “ central authority” controlling the supply–no banks or governments can artificially inflate or deflate the value or limit how much is available). It doesn’t exist in a physical form (despite all the fun graphics showing refreshing minted tokens). The Future of Blockchain and Cryptocurrencies in Video GamesĬryptocurrency is a digital currency.Cryptocurrency and Video Games–What Are the Potential Implications?.You should be ready to lose any money you invest because that’s just how things could shake out. The ideas sound good! But they are still uncertain investments. You don’t want to miss this.īut here’s the other thing: No one really knows what’s going on with cryptocurrencies. There’s a lot of action, a little bit of craziness, and a lot of interesting ideas. This guide explores cryptocurrency (by talking about what the heck it is), blockchain, and then looks at how this technology is being adapted for use in video games. Is there something to the crypto craze that is sweeping through investing and gaming circles alike? And everyone else just scratches their head. Disclaimer: Speculating Cryptocurrency is risky and none of the information provided in this article should be considered financial advice.Įven if you live under a rock, you’ve probably heard about cryptocurrency, bitcoin, blockchain, or some other “latest craze” jargon.Ĭryptocurrency means different things to different people.
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