Blockchain is an ingenious invention that has taken the technological world to another level. This mind-blowing tech was introduced by a person (or a group of people) known by the pseudonym, Satoshi Nakamoto. However, blockchain has given rise to enormous new technological advancements and it has evolved into something greater. Now there might be a few people who would be asking “What is Blockchain?” Here is a brief introduction to the concept. The term is still new for some people and we are here to take you through the step by step guide for an in-depth understanding of this innovation.
Imagine you are allowing your digital information to be shared but it cannot be copied, tampered or changed. This is what exactly this technology is capable of! Blockchain is backed by encrypted technology that allows the information to flow but it cannot be replicated, altered or modified. Due to this security and safety of data, blockchain technology is considered as a new type of backbone of the internet. Initially, this technology was used to buy and sell new digital currency “Bitcoin” but later several uses of this scientific invention have been discovered.
What is Blockchain?
“Blockchain technologies will change transactions in a broad way.”_ Brad Garlinghouse
In simplest words, a Blockchain is a collection of time-stamped blocks. These blocks have unyielding records of data that is maintained by a group of computer devices, and not owned by any single individual. As data on the blockchain is stored in blocks, these blocks are connected using cryptographic principles that are known as the chain. Hence combining the two terms gives it the name “Blockchain”.
The most interesting aspect of this technology is that there is no central authority. This makes it a democratized system. The blockchain uses an immutable ledger, that allows the information available to view for anyone but it cannot be changed or copied. Therefore, anything that is created or distributed on it is utterly transparent and everyone involved is responsible for their actions. The data or information can never be altered as it is dispersed on the blocks making it impossible to reverse the action.
How does Blockchain work?
It is an inventive way to transfer information from one point to another without any transaction cost in a fully automated and safe manner. The block on the blockchain is created when one party that wants to make a transaction, initiates the process. Once the process starts and the block is created, it is verified by the millions of computer systems distributed around the net. After the block is verified by a cluster of systems, it is added to the chain that is piling up across the net. It is impossible to falsify even a single block because it has been verified by millions of computers and is connected in a chain with these millions of devices. As blockchain networks work on a decentralized system it is impossible to hack the information making this technology the safest to share transactional and other personal details. Being the backbone behind “Cryptocurrency”, it is clear to see why people are adopting it worldwide.
Blockchain Technology Works on Three Pillars:
Pillar #1: Decentralization
With the emergence of Bitcoin and BitTorrent, the decentralized system has been emanated. Before the evolution of the decentralized system, the financial entities used to work with centralized systems where every data was recorded with a single entity, which makes it less secure than the decentralized system.
Pillar #2: Scalability:
Another property that can be showcased is scalability, this attribute of the technology allows the growth of profitability. Blockchain technology is decentralized and transparent and it is created in the form of a connected chain that enables the process to be more wider, secured and broad.
Pillar #3: Security:
This is the most important aspect of a blockchain, the data on it is secured with end-to-end encryption making it impossible to tamper with or change the information. Immutability is one of the properties that takes the technology to another level, this makes the entire system trustworthy and usable by financial institutions.
Future of Blockchain Technology:
“Before Blockchain Capital, I was cranking out startups like an incubator.”– Brock Pierce
This entrepreneurial concept has given us one of the best inventions, i.e; “Cryptocurrency” and the future of this technology seems bright. Blockchain enables financial organizations to handle the workload efficiently and securely. Blockchain technology makes the transactions easy, cost-effective and time-effective. Moreover, the technology works on a distributed database which makes the functioning secure and smooth. One such company that has truly utilized every aspect of the technology and made it their own is Reactive Space. With high end projects such as Tyslin, Green Secure and more under their belt, they have the skills and the imagination to truly utilize the functionality of Blockchain to the max.
Blockchain technology can be helpful in the following domains:
- Improving Cyber Security
- Managing World Trade/Businesses
- Maintaining Supply Chain
- In the Development of the Internet of Things
- Blockchain in Cloud Storage
- Creating more Digital Currencies
- Securing Crowdfunding Platform
The Final Verdict:
Blockchain appeared with the emergence of Bitcoin and it has been evolving in the tech world since then. This technology is considered as the most secure and safe network that operates on a peer-to-peer network that contributes to creating a chain of blocks. Data on blockchain is distributed on the blocks that are connected by a cluster of computers making the distributed information secure and transparent. This innovative tech is not only restricted to the Finance Industry. It has a broad scope in several different sectors including digital advertising, healthcare, supply chain, cybersecurity, Internet of Things and many more. Want to get Blockchain implemented in your business? Just Click Here.