Throughout the past decade, blockchain technology has gone from a new financial experiment with a cult following, to a potential revolutionizer of data management. As blockchain has gained more and more traction, many people still struggle to understand: what exactly is blockchain? And why would anyone want to use it? SmashingBoxes’ blockchain practice, SmashingBlox, has created a series, to answer those very questions and provide the foundation needed to understand blockchain and cryptocurrency.

When a cryptocurrency transaction is requested on a blockchain, the network verifies the transaction by following consensus protocols. The most popular consensus protocol is the Proof of Work (PoW) protocol. In Proof of Work, the data validation process is called mining.

Cryptocurrency is digital money, enabled by blockchain, and not tied to any physical assets. What are the key attributes of cryptocurrencies?

What is currency? We use money every day, but few people take time to understand why the dollars in their bank accounts have value. Before we take a deep dive into the processes behind popular cryptocurrencies, like Bitcoin, lets first define the various types of currencies and cryptocurrencies on the market.

There are a variety of potential applications of blockchain technology each with the benefits and challenges. As we begin to look towards the future, it is helpful to also take a step back and understand the history of blockchain.