Blockchain and cryptocurrencies are systems that have changed the face of internet commerce. However, with many feeling distrustful towards new technologies, blockchain has to fight to gain users’ fragile trust. Internet users may not understand what blockchain is or how cryptocurrency works. What they don’t realize is that although crypto is not like the crisp dollar bill that can be kept in a piggy bank or exchanged for goods at a corner store, it has many features that make it even more secure and dependable than fiat currencies.

How Does Blockchain Work?
Blockchain is the name for the secure, transparent, tamper-resistant ledger where records are kept of how cryptocurrency changes hands.
This may make it seem like your investments are difficult to access. However, the biggest decision a crypto investor may face is which coins to purchase. Many go with the most famous tokens and memecoins, feeling most comfortable with Bitcoin and Dogecoin. Those who have done more research may go for Ethereum or Solana coins. The crypto you choose will affect which wallets you use.
Crypto can be stored in various types of wallets, each suited to different needs. For example, a Solana wallet can hold both SOL and tokens from over 60 other blockchains, making it a versatile option for multi-chain users. Other popular wallets, like MetaMask, which is primarily Ethereum-based, are usually ideal for ERC-20 tokens and DeFi applications, while wallets like Trust Wallet or Ledger hardware wallets support a broad range of coins across ecosystems. Some wallets are better optimized for speed, others for security or compatibility with specific chains, which is why users often choose based on the coins they hold and how they intend to use them.
The History of Blockchain
Blockchain was pioneered in 2008 at the advent of Bitcoin. It was developed by an anonymous group or entity known as Satoshi Nakamoto, who was pioneering digital currencies at the time. The ethos of the movement was to provide a safe way to make monetary transactions without the need for a reputable intermediary like a bank. These are called peer-to-peer transactions.
Blockchain was also created to solve a very real and immediate problem in early online currencies.
This was the problem of double-spending. What this meant is that due to an error in the peer-2-peer server, the same token or coin could be spent twice. The inclusion of a permanent and transparent ledger meant that this was no longer a problem, as each entry was permanent and connected in a chain to other entries. These chains mean that if one entry was tampered with, all other entries would have to change as well, making tampering impossible. This also means that there could be no double entries produced by double-spending.
Smart Contracts in Blockchain and How They Contribute to Transparency
In 2015, the development of Ethereum made another wave of changes to the way that cryptocurrency and blockchain were used. This was the inclusion of a smart contract in the blockchain ledger, an addition that helped automate transactions and reduce the chance of error.
Smart contracts are a coding trick built into blockchains in order to automate transactions. This works by setting an agreement, and then once the agreement is met, a transaction goes through. This is done by including an “If/when…then” statement into code, where contract particulars are stipulated. These contracts can release funds, issue tickets, register items to a new name, or generate a new code for a user.
Smart contracts are increasingly used by businesses that build their models around blockchain technologies. There is particular interest in smart contract technology for enterprises working in the supply chain. These companies use engineers to include these smart contracts in their agreements, and are developing templates for such agreements to be built into their systems more easily.
Building Trust through Verifiable Transactions
Blockchain ledgers allow purchases to be verified, and this has a range of benefits. One of the biggest benefits to this is in commerce, where websites may be littered with bots leaving fake reviews for products. When a website is full of fake reviews, what this means is that even the real reviews lose relevance and feel untrustworthy. This is eradicated by the use of a blockchain ledger. Websites that can verify purchases are better able to protect their real clients, and users who are able to parse real reviews from fake reviews are empowered in their transactions.
It should be noted that anyone can audit blockchain transactions. What this means is that there is no specialized body that has access to this information, and it is available for all. This removes the black box system around finances. Blockchain transactions are also permanent, and once a transaction has been made it can’t be removed from the ledger.
It is not to say that this transparency undermines user privacy and jeopardizes discreet purchases. In fact, although transactions are transparent, they are also anonymous. No full names, ID numbers, or digital wallet IDs are attached to blockchains. Instead, anonymous pseudonyms are attached to each transaction. Thus, there is an anonymous but completely transparent database.
Fairness Ensured through Better User Experience
Opaque business practices have been a scourge for online commerce. They have made it difficult for authorities to apprehend suspected criminals, but they have also made it so that it is difficult to find a paper trail which may incriminate them. Blockchain allows for the flow of funds to be traceable and allow for better control of illicit activities. This helps regular consumers who may be taken advantage of in online transactions.
The added benefit of this transparency is that it gives users confidence in these new technologies. People are thus able to extract maximum value from crypto and blockchain. Some benefits many are missing out on due to their fear around crypto include low bank costs, quick transfers across borders and accessibility in many countries around the world. The more users learn to trust these technologies, the more they are able to depend on them.
When users better trust these systems, they are able to better extract value from these emerging technologies. When more people trust blockchain technologies, what happens is that engineers and developers are able to develop systems which are interoperable. What this means is that multiple infrastructures can be used to create a larger online ecosystem, connecting a variety of different people and businesses. These stores can innovate, and may choose to create omnichannel presence, having both digital and brick-and-mortar storefronts.
Conclusion
Blockchain and cryptocurrencies are not just means of trading, but also a means by which to organize our world trade systems. By better integrating crypto into our online purchases and daily lives, we find that we can normalize technologies which offer benefits far beyond their current uses.