array(1) { [0]=> &object(stdClass)#6955 (52) { ["id"]=> string(5) "17805" ["title"]=> string(28) "Wrapping up an eventful 2021" ["alias"]=> string(28) "wrapping-up-an-eventful-2021" ["introtext"]=> string(220) "

In the final episode of The nestegg Podcast for 2021, host Maja Garaca Djurdjevic checks in with our three experts to hear their final thoughts on the year that’s passed and their hopes for the next 12 months.

" ["fulltext"]=> string(1011) "

Steve Waters, director of Right Property Group, talks Christmas selling season and opens up about the key lessons that he’s learnt this year that he will gladly take forward with him into 2022.

RMIT senior lecturer of finance Dr Angel Zhong covers meme stock ETFs as well as provides her thoughts on next year’s economic outlook.

Finally, tax and super guru Timothy Munro shares his end of year financial checklist and some handy tips that could help you keep your credit card in check over the gifting season.

Tune in to hear more below.

Have a question for our experts? Get in touch at [email protected], and you might get featured on the next episode.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(3) "302" ["created"]=> string(19) "2021-12-14 03:11:58" ["created_by"]=> string(2) "64" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2021-12-14 07:46:21" ["modified_by"]=> string(4) "2404" ["modified_by_name"]=> string(12) "Robyn Tongol" ["publish_up"]=> string(19) "2021-12-14 07:40:26" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(240) "{"image_intro":"images\/podcasts\/090321_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(855) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","video_url":"","channel_id":"UCLBR-2LtTtui_WiRuEfW3qA","send":"0","test":"0","comments":"1","readingDiff":"3","schema_active":"0","schema_name":"","schema_description":"","schema_thumbnailUrl":"","schema_uploadDate":"","schema_duration":"","schema_contentUrl":"","schema_embedUrl":"","canonical_link":""}" ["metadata"]=> string(68) "{"robots":"","author":"","rights":"","xreference":"","metatitle":""}" ["metakey"]=> string(24) "wrapping, eventful, 2021" ["metadesc"]=> string(200) "In the final episode of the The nestegg Podcast for 2021, host Maja Garaca Djurdjevic checks in with our three experts to hear their final thoughts on the year that’s passed and their hopes for the " ["access"]=> string(1) "1" ["hits"]=> string(3) "417" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "1011" ["ordering"]=> string(1) "0" ["category_title"]=> string(7) "Podcast" ["category_route"]=> string(17) "resources/podcast" ["category_access"]=> string(1) "1" ["category_alias"]=> string(7) "podcast" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "82" ["author"]=> string(8) "Reporter" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(9) "Resources" ["parent_id"]=> string(3) "300" ["parent_route"]=> string(9) "resources" ["parent_alias"]=> string(9) "resources" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#6947 (3) { ["data":protected]=> object(stdClass)#6953 (95) { ["article_layout"]=> string(14) "momentum:newne" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "0" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "1" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "0" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "1" ["show_vote"]=> string(1) "1" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "1" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "0" ["show_icons"]=> string(1) "1" ["show_print_icon"]=> string(1) "1" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "1" ["record_hits"]=> string(1) "1" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "1" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(4) "left" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(14) "momentum:newne" ["show_category_heading_title_text"]=> string(1) "1" ["show_category_title"]=> string(1) "1" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(2) "-1" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "1" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "1" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "14" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(2) "-1" ["show_pagination_limit"]=> string(1) "0" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(9) "published" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "1" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(1) ["sef_ids"]=> int(1) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> NULL ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["menu-meta_description"]=> string(180) "Let us help you decide how you want to invest your money on. Learn the best strategies in investing and options like cryptocurrency, bonds, mutual funds, property and stock market." ["secure"]=> int(0) ["page_description"]=> string(7) "nestegg" ["page_rights"]=> NULL ["robots"]=> NULL ["page_heading"]=> string(71) "Invest Money - Strategies and Tools for your Investment Goals | nestegg" ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2021-12-14 07:40:26" ["slug"]=> string(34) "17805:wrapping-up-an-eventful-2021" ["catslug"]=> string(11) "302:podcast" ["link"]=> string(47) "/resources/podcast/wrapping-up-an-eventful-2021" ["image"]=> string(65) "images/podcasts/090321_Angel_Zhong_Steve_Waters_Timothy_Munro.jpg" ["image_alt"]=> string(0) "" } }

Latest Podcast

Wrapping up an eventful 2021...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

What is blockchain? Explaining the technology behind crypto

By Zarah Mae Torrazo

May 16 2021
Share

Invest

What is blockchain? Explaining the technology behind crypto

By Zarah Mae Torrazo
May 16 2021

What is blockchain? Here’s our rundown on the technology behind cryptocurrencies and how it can impact financial transactions in the future.

What is blockchain? Explaining the technology behind crypto

By Zarah Mae Torrazo

May 16 2021
Share

What is blockchain? Here’s our rundown on the technology behind cryptocurrencies and how it can impact financial transactions in the future.

As cryptocurrencies such as bitcoin, ethereum and dogecoin, as well as NFTs, dominate the financial market headlines, you may have come across the word blockchain often.

Blockchain is the technology that underpins digital currency (bitcoin, litecoin, ethereum, and the like). The tech allows digital information to be distributed, but not copied. That means each individual piece of data can only have one owner and is unique.

But blockchain goes beyond cryptocurrency. And while the terms are often used interchangeably, they are not the same thing.

Here’s how blockchain technology works, how it applies to cryptocurrencies, and its potential uses are.

What is blockchain technology?

A blockchain is a database that is distributed or shared across a network of computers. You may think of it as a spreadsheet that is replicated thousands of times across a network of computers. Then, picture that this network is designed to regularly update this spreadsheet. Blockchain technology basically serves as a digital ledger.

One main feature of a blockchain is that it’s decentralised and not stored in a single computer. It is not regulated by a single organisation, bank or company. As mentioned, it is shared over many computers in the network. This allows peer-to-peer transactions without the need for a central clearing authority, such as banks.

Because a blockchain is shared, the records are public and verifiable. And because there is no single central location, it’s harder to hack since the information exists simultaneously in thousands, if not millions of places.

How does a blockchain work?

To fully understand how it works, let’s break down the basic parts to every blockchain.

The record: This can be any type of information, a deal for example.

The block: A bundle of different records.

The chain: All the blocks linked together.

Here’s how a deal is recorded in the blockchain. For example, let’s say James is selling two of his coins to John for $500. The record lists the details.

Then, the computers in the network look at the trade and make sure that it is a real trade or transaction. These computers, called ‘nodes’, check the details of the trade to make sure it is valid. Every transaction in the blockchain is authorised by the digital signature of the owner, which authenticates the transaction and protects it from tampering.

As each transaction is verified and accepted as being authentic, it’s added to a block. “Blocks” of information are linked together in a permanent “chain”. Each block contains a unique code called a hash. It also contains the hash of the previous block in the chain. The hash that it carries ensures that it is in proper chronological order.

Every time a new block is added to the chain, the previous blocks become even harder to modify, increasing the security of the network every time each block is added.

How can a computer join a blockchain?

Because blockchains do not have a centralised control of a network, trust becomes an issue. One way to allow people to join is to inform only people that you can trust to be in a network, such as company employees.

However, blockchains such as bitcoin network or ethereum network are open to anyone. Members can anonymously join and there is no way of checking if they are reliable or trustworthy.

To address this issue, blockchains require computers that seek to join and add records to the chain to pass tests called consensus models. Some of the most used tests are proof-of-work (PoW) and proof-of-stake (PoS).

In a PoW consensus test, nodes who want to join must demonstrate that they have done ‘work’ by finding the solution to an increasingly complex and difficult mathematical problem. This process is called mining.

Mining utilises a lot of computing power, hence, higher energy usage. According to Cambridge’s Centre for Alternative Finances, bitcoin’s annualised electricity consumption is just above 115 terawatt-hours (TWh), while Digiconomist’s closely tracked index puts it closer to 80 TWh.

Upon completion of the test or in return for their ‘mining’, members get rewards, such as tokens or bitcoins.

In a PoS test, a person can mine or validate block deals based on how many coins they hold. This means that the more coins a miner has at stake, the more mining power they possess. The proof-of-stake test comes with a number of improvements to the proof-of-work system. It has better energy efficiency, as you don’t need to use lots of energy to mine blocks. Additionally, it has lower barriers to entry and reduced hardware requirements.

However, compared with PoW, PoS is still in its infancy and less battle-tested. It is also not as straightforward as using PoW to reach consensus across the network.

What are the other uses of blockchain?

Blockchains have been used to underpin cyber currencies like bitcoin, but many other possible uses are emerging.

Potential applications of the distributed ledger technology include:

Banking – Perhaps no industry stands to benefit from integrating blockchain into its business operations more than banking. Financial institutions around the world have been investing in blockchains to simplify their record-keeping for payments, among other uses. In 2019, Wells Fargo & Company even announced that it is piloting its own digital currency, which will run on blockchain technology and make international payments and transactions easier.

Supply chains – Recording trades on a blockchain offers a way to check the history of a product. In 2018, subsidiaries of investor Warren Buffett’s company, Berkshire Hathaway Inc, partnered with IBM to create a blockchain platform for improving traceability of their diamonds.

Voting – Blockchain could be used to launch a modern voting system with tamper-proof election returns. The blockchain protocol would also maintain transparency in the electoral process, reducing the personnel needed to conduct an election and providing officials with nearly instant results. This would eliminate the need for recounts or any real concern that fraud might threaten the election.

Healthcare – With the blockchain technology, medical history could be securely stored and controlled by patients. Healthcare providers can use blockchain to securely store their patients’ medical records. When a medical record is generated and signed, it can be added to the blockchain, which gives patients the proof and confidence that the record cannot be changed or tampered. These personal health records could be encoded and stored on the blockchain with a private key, so that they are only accessible by certain individuals, ensuring privacy.

Property records – Keeping land records on a blockchain could cut down on costly title research and insurance. In politically unstable places (such as war-torn countries or areas that have little to no government or financial infrastructure), it could help prove ownership.

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates

Rate the article

Cryptocurrency

Crypto users worldwide tipped to reach 1bn this year

The number of crypto owners worldwide grew to 295 million in 2021, according to a new report. ...Read more

Cryptocurrency

Is it possible to green bitcoin? Filecoin thinks so

The debate around crypto and carbon emissions calls for greater transparency. ...Read more

Cryptocurrency

Crypto start-up branches into BNPL

Crypto and BNPL: together at last. ...Read more

Cryptocurrency

Crypto crime proceeds almost doubled in 2021

Crypto crime has risen over the past year, but not nearly as much as overall transaction volume. ...Read more

Cryptocurrency

Crypto backers bolster holdings as price falls

Could bitcoin’s latest setback be an opportunity in disguise? ...Read more

Cryptocurrency

More countries to adopt bitcoin as legal tender in 2022

Experts expect more countries to follow El Salvador’s lead and adopt bitcoin as a legal tender in 2022. ...Read more

Cryptocurrency

The mistake everyone makes about NFTs

Excitement about NFTs is reaching a fever pitch, despite the contradictions. ...Read more

Cryptocurrency

Experts expect 2022 to be the year of the NFT

Backers of 2021’s most-talked-about crypto asset claim that we’re only beginning to see what NFTs can do. ...Read more

Listen

Wrapping up an eventful 2021

Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

Listen now

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

Watch now

nestegg Presents: Meet the Manager – Australian Solar Investments

Watch now

How much do you expect to spend at Christmas

Watch now

Is your super really that super?

Watch now

Read

Reap the benefits of planning your financial future

What are the best-performing and most popular ETFs in Australia?

Aussie investors drive record growth for ETFs

How Aussies plan to improve their savings habits in 2022

Financial terms made easy

What Is A Personal Cash Loan - Video

What’s ethical investing?

What is a commodity?

What is a mortgage broker?

Crypto users worldwide tipped to reach 1bn this year

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

sections

sections

sections

sections

sections

sections

sections

Most read

The trends driving consumer change in 2022 ...

Latest Podcast

Wrapping up an eventful 2021...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest

What is blockchain? Explaining the technology behind crypto

Invest

What is blockchain? Explaining the technology behind crypto

What is blockchain? Explaining the technology behind crypto

What is blockchain technology?

How does a blockchain work?

How can a computer join a blockchain?

What are the other uses of blockchain?

RELATED ARTICLES

Crypto users worldwide tipped to reach 1bn this year

Is it possible to green bitcoin? Filecoin thinks so

Crypto start-up branches into BNPL

more on this topic

Cryptocurrency

Crypto users worldwide tipped to reach 1bn this year

Cryptocurrency

Is it possible to green bitcoin? Filecoin thinks so

Cryptocurrency

Crypto start-up branches into BNPL

Cryptocurrency

Crypto crime proceeds almost doubled in 2021

Cryptocurrency

Crypto backers bolster holdings as price falls

Cryptocurrency

More countries to adopt bitcoin as legal tender in 2022

Cryptocurrency

The mistake everyone makes about NFTs

Cryptocurrency

Experts expect 2022 to be the year of the NFT

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

nestegg Presents: Meet the Manager – Australian Solar Investments

How much do you expect to spend at Christmas

Is your super really that super?

Meet the Manager series with John Baini - Episode 1

Knowing your rights as a consumer

It PAYS to speak up about your finances

Meet The Manager: The hunt for yield continues domestically despite the Australian economy 'coming off the boil'

Is your car worth it?

Video: Trick or treat this tax time

Watch

nestegg Presents: Meet the Manager with Philip Ryan - Trilogy Funds

nestegg Presents: Meet the Manager – Australian Solar Investments

How much do you expect to spend at Christmas

Is your super really that super?

Listen

Sick of reading? Let the Nest Egg Podcast deliver information on topics as varied as crypto and emerging markets to retirement strategies and financial literacy straight to your ears.

Wrapping up an eventful 2021

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness

APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips

What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?

Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?

What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?

The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice

Listen

Wrapping up an eventful 2021

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?

Borrow

nestegg will keep you informed about the latest in banking, credit cards, and loans. With our wide-range of comprehensive content, you can get all the information you need on how to borrow money more effectively.

Personal cash loans

Will these changes to joint account data sharing impact you?