As I begin this article, I want to start out by stating that this will be another “mile-high” view of exactly what a blockchain is.
To have a greater understanding of cryptocurrency as a whole, you need to understand the technology behind it.
This is the blockchain.
Blockchain – Revolutionary Technology
Blockchain is not wholly new tech, but a combination of established tech used in such a way that it is a profound technology.
Wikipedia defines blockchain as:
“A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography…”
Did you get all of that?
It can be a bit confusing… after all, as of the original writing of this article, blockchain is less than 20 years old.
Cryptocurrency is considered a disruptive technology.
“an innovation that creates a new market and value network and eventually disrupts an existing market…”
I know what you’re thinking: “OK, great, so what does that mean?”
Let’s put it into perspective…
Before the advent of the internet, if you needed to find information, you went to a library.
When the internet came on the scene, you could log on from home and search for what you needed.
Then came email… a disruptive technology that lets you send a letter without the postal service.
Today, think about how streaming services disrupted cable TV.
Blockchain is on that same level of disruption for finance and data.
Enter Cryptocurrency
Now, you might be thinking, sending money digitally has been around for a while… and you’d be right.
However, cryptocurrency differs due to the tech behind it.
Let’s face it, when you break them down to their most basic form… cryptocurrencies are a shared database or ledger called a blockchain.
Decentralized Nature of Blockchain
So by now, you have heard the word “decentralized” put out there.
So what exactly does that mean?
For our purposes, centralized describes a single location or company which controls an asset or information… think your bank.
Decentralized means just the opposite… all the assets or information are distributed over multiple locations.
So when transacting with cryptocurrencies, instead of using a central bank or payment processor (a trusted 3rd party), we use the blockchain… which allows for peer-to-peer transactions without that intermediary.
How Does the Blockchain Work?
The blockchain is made up of thousands of computers (nodes) around the world.
These nodes secure the network and provide a cryptographically protected public ledger of transactions.
Because the entire history is recorded and thousands of computers come to consensus to update it, there is no need for a “trusted 3rd party.”
The fees are pennies, and you don’t need government-created currency (fiat).
Hacking into a blockchain is near impossible.
To do so, you must control over 50% of the network’s computing power, and even then, you can’t just amend one block but every block before it.
Recording Blockchain Transactions
You might be thinking; “OK, that all sounds great… but how does this get recorded?”
As of 2026, there are several methods used in the cryptocurrency space.
They are called consensus mechanisms.
The two most commonly used are Proof-of-Work (PoW) & Proof-of-Stake (PoS). I compared and contrasted these 2 consensus algorithms … you can check that out here. [LINK: POW vs POS]
But here is a quick overview here…
Proof-of-Work (PoW)
This method was first created with Bitcoin.
Computers solve complex mathematical computations to “mine” new coins.
These “miners” are provided a monetary incentive, which keeps the blockchain in sync and secure.
Proof-of-Stake (PoS)
This concept allows a person to validate transactions based on how many coins they hold and “lock up” as collateral.
In return, they receive periodic monetary distributions.
This process is considered “greener” as it requires less power.
This method is now a dominant force in the space, with Ethereum’s transition being a landmark event. [LINK: ETHEREUM POS]
Other Consensus Models
Beyond these two, other models have emerged.
Delegated Proof-of-Stake (DPoS) allows coin holders to vote for a small number of delegates who then validate transactions, making the network faster.
Proof-of-Authority (PoA) uses a pre-approved set of authorities… like reputable companies or individuals… to validate blocks, making it highly efficient for private or enterprise blockchains.
Where Do You Go From Here?
Unless you are a complete techie… this is more than enough information for you to function in the cryptocurrency space and have a working understanding of how these platforms and projects utilize blockchain technology
But if you are a techie… maybe you should consider working in the industry…
Looking For A Job?
When I first wrote this article in 2018, I was thinking this would be an expanding section for jobs in this new world.
Now, here we are in 2026… and that vision is a reality.
If you are a tech-savvy person looking for employment, there are many projects looking for good people.
You can get paid to do something you enjoy while helping to develop a new economy. In-demand roles today include Smart Contract Auditors, DeFi Strategist, Community Managers, Blockchain Developers and so much more.
These opportunities exist not just at startups, but at major financial institutions and tech companies now integrating the technology.
Your Foundation For Understanding
Grasping the concept of a decentralized, immutable ledger is the next step in your journey.
It’s the “why” behind the “what” of cryptocurrency.
This technology is the engine that drives trust without a central authority, and understanding it is what separates a casual observer from a serious participant in the future of finance.
To help understand blockchain & cryptocurrency, I have written an ebook; Cryptocurrency 101 | Cryptocurrency & Blockchain Basics For Your Freedom
You can download it for FREE here
Meanwhile, I am in the process of writing a more expansive & updated second version of this ebook… watch for it…
