The blockchain is one of the terms you’ll commonly hear in technology right now. It is also one of the biggest buzzwords in the crypto market.
But what does it mean? Why your friends and colleagues are interested in this technology?
Find it out right here.
Blockchain on Cryptocurrency
Bitcoin is the most popular cryptocurrencies as of now. Today, huge and small businesses accept bitcoin as a payment option. You can use this virtual currency to shop online, ask for services and donate to charities.
Cryptocurrencies work similarly to physical money except for the virtual part. Most people prefer using cryptocurrency because of the convenience it offers. For example, if you are donating a sum of money to a charity using bank transfer, the process may take a few days to complete before the charity can use your donation.
In the case of cryptocurrency, the non-profit organization can immediately receive your donation hassle-free. The process only takes a few minutes and mind you, there are no fees involved.
The problems with digital transactions are the threats of identity theft and scam. Hackers can look up your account and steal private information. The good thing is Satoshi Nakamoto, the brain behind Bitcoin, utilized a technology called blockchain to secure the transactions and information of a crypto user.
The blockchain is a public ledger of every transaction. Information such as date and time of the transaction as well as the amount involved are called as blocks.
Altering or tampering the blockchain is not possible. Each block contains a unique code called hash. This code prevents a hacker from accessing private information on the blocks.
Now, a lot of transactions happen around the globe. Each transaction is grouped into blocks which are organized using cryptographic rules. The blocks are then sent into the bitcoin network which is composed of high-powered computers. These computers validate the transactions by solving complex mathematical puzzles. Whoever solves the puzzle receives a bitcoin.
Each new block added into the previous blocks creates a chain called a blockchain. Thus, manipulating blockchain in Bitcoin is impossible.
Using cryptocurrencies as a donation is guaranteed safe. You can assure that your private information is protected from malign individuals and threats. Moreover, crypto donations are more transparent. All of your donations are recorded in the blockchain turning the transaction public. Furthermore, blockchain helps in tracking the transactions between the donors and charity. If you are planning to donate to a non-profit organization, you are confident that it can aid on actual causes.
One example of successful donations in the past year is Fidelity Charitable who received $69 million crypto donations. If you are interested to be a part of charitable works, check these crypto sponsored posts are an option to learn more about the processes of donating using cryptocurrency.
You probably have questions on how cryptocurrency, the blockchain, and charities work together. If you are interested to learn more about it, check this out here at Young UpStarts.
Philanthropy is not dead. Lend a hand to people around the globe using this modern technology.