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So, What Exactly is Blockchain?
You’ve may have heard about the term „blockchain“ that’s been growing in popularity during the last 10 years. But what exactly is „the blockchain“?
If you would try to get that answer online, you would probably find something like:
„Blockchain technology enables distributed public ledgers that hold immutable data in a secure and encrypted way and ensure that transactions can never be altered.“
But in plain English, blockchain is just a way to securely store data.
If you would try to get that answer online, you would probably find something like:
„Blockchain technology enables distributed public ledgers that hold immutable data in a secure and encrypted way and ensure that transactions can never be altered.“
But in plain English, blockchain is just a way to securely store data.
How Blockchain Actually Works?
The data is divided in a lot of different blocks, these blocks are connected in a chain, and each block has a security code that depends on the previous block. And this is why the data is extremely hard to change.
The Block (Digital Information/Data) is stored in Chain (Public Database), hence the name „Blockchain“.
Information in The Blockchain
Even though transactions on the blockchain are not 100% anonymous, the private information about users is limited to their digital signature/username.
Blockchain networks have tests for the computers that want to participate in their network. Bitcoin for example, uses the „Proof of work“, where computers must solve complex computational math problems in order to participate in their network. If they solve this problem, they can add the block to the chain. Solving these math problems is called mining, and it’s really hard!
This is why it is almost impossible for hackers to try to organize an attack on blockchain.
The Future of Blockchain
Lately, blockchain became popular mostly due to the rise of cryptocurrencies, blockchain technology has a bright future in a lot of different fields/industries. Here are just a few examples:
International Payments
International transfers can be really slow, especially if multiple currencies are involved. Blockchain technology is a great alternative to traditional international payment methods. Blockchain technology can significantly reduce the costs of transaction, and at the same time greatly increase the speed of transaction.
Identity Security
Identity theft is one of the alarming issues in the age of internet. Blockchain technology has also showed great potential in this field as well. As we have said before, blockchain has a huge level of security due to strong veritification processes on it’s network. The same processes could be used for a lot of other veritification procedures.
Property Records
Most businesses are rellying on traditional methods for doing business and keeping records. Blockchain technology is set to change that. Anything from signing a contract, managing cash flow, signing agreements, filing requests can be done in a safe and secure manner through the blockchain technology.
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