What is Blockchain
What is Blockchain? And where does the value of cryptocurrency come from? After explaining the history of state treasury failures in the previous article Cryptonian. Many people probably understand a bit more about how the digital currency system works. Why would such technology replace the state currency system? But the popular question that many people still wonder is If the original monetary value is determined with state conviction So what does the value of cryptocurrencies depend on? To be able to explain clearly, we have to compare it with the origin of ‘gold’ because ‘bitcoin’ and gold are very similar.
Initially, gold was just a gleaming yellow stone belonging to the noble metal family.
The distinguishing feature of gold is Inability to react with most chemicals and cannot synthesize. Gold can only obtain by ‘mining’, and people believe that gold is a finite resource. If the day when gold runs out of the world. We will no longer be able to earn gold by mining.
The very difficult acquisition of gold ore. Making humans in the modern era has determined that this type of yellow gold ore acts as ‘Store of Value’ . It is understood that This yellow stone containing the chemical element atomic number 79 can exchange for value. Over the past 5,000 years, gold has proven itself to have the property of being trade with no one to beat this metal.
From a brief history of the golden prince. We can see that gold is qualified as an intermediary of exchange (Medium of Exchange) in its entirety. Whether it is 1. The standard of all gold units will have the same properties. 2. Able to divide into units. 3. Easy to carry, 4. Not fast deterioration 5. Widely accepted and this is the most important point. All of which has been said It is also a feature that Bitcoin has in its entirety. And the person who completes Bitcoin is the ‘Blockchain’ technology.