What is Blockchain Technology? Is it really going to change the world?
Everyone must have heard about the term Bitcoin and few of us must have some Bitcoins, some may be trading with them. It has become very popular in last 2-3 years since it works without a central repository or administrator which is not the case in traditional currency. After that big question arises, how this transactions are verified in such case? Blockchain plays important role in this picture. Another question may come to your mind what is Blockchain?
What is Blockchain?
“The blockchain is incorruptible digital ledger of economic transaction that can be programmed to record not just financial transactions but virtually everything of value.” The blockchain is a list of records, the blocks that grow continuously. It is a decentralized, digitalized, public ledger of all cryptocurrency transactions. It make use of DLT i.e Distributed Ledger Technology. These are linked to each other and that are also secured with the help of cryptography. In it, most recent transactions are recorded and added to the blocks in chronological order and also allows its participants to keep track of their digital currency transactions without the need for central record keeping. Each computer connected to the internet gets copy of blockchain, which is downloaded automatically.
Whether the blockchain is fad or is really going to change the world? Before coming to this question, it is really important to know the fact that Bitcoin and Blockchain are two different concepts.
How does it works?
Blockchain is the technology that underpins digital currency such as Bitcoin, Ethereum, Litecoin etc. This blockchain allows digital information to be distributed, not copied. It means that each individual piece of data can only have one owner.
Information is continuously reconciled into the database, which is stored in multiple locations and updated instantly. It means that the records are public and verifiable. There is no central location, it is harder to hack since the information exists simultaneously in million of places. Blockchain technology was invented in 2008 but came into picture when Bitcoin launched.
Why is it called Blockchain?
A block is record of a new transactions. It is added to the chain , when a block is completed. Bitcoin owners have the private password ie. Complex key to an address on the chain. Cryptocurrency distributed without middle man, that means you don’t need a bank to verify or to transfer or take a cut of the transaction.
What are the features of Blockchain?
In this scenario, transparency plays a major role is enhancing the business. If there is transparency, your business will grow more. Blockchain facilitates you in achieving this as the control of the information of the user rests with them and also provides them complete control of their transactions. It create transparent system. It helps you to gain the trust of the customers and develop a good relations.
Security is one of the best benefits of Blockchain that it provides amazing security and help you to provide assured information. With the help of critical cryptography method, the authenticity of the information is verified. Data and transactions that make use of this technology do not allow any changes to data once written. Hence it is impossible for any backdoor transactions. It is distributed across multiple data centres so it can ensure security against any network and hardware equipment.
C. Faster Transactions:-
It take more time for transactionass and may take days to process. But in this case, it takes very less time and may take less than 1-2 minutes to process.
D. Less transaction cost involved:-
Blockchain eliminates involvement of third parties that reduces the transaction costs involved. This proves out to be beneficial for the user.
Thats it for this article. I hope you are satisfied with this information. If you have any questions or suggestions, write it into the comment section.