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Blockchain Technology 101- An Innovation series
In this guide, you will know what precisely a blockchain technology is and its properties as well as what makes it so exceptional.
Blockchain is an unquestionably resourceful development that is practically bringing about a revelation in the business niche all over the world. The evolution of blockchain technology has brought with a greater good, not just for companies but for its beneficiaries too. But since it is a revelation to the world, an idea of its operational activities is slowly becoming clear. Let’s look into what exactly blockchain technology is.
What is Blockchain Technology?
To begin with, the blockchain acts as a platform which permits the transfer of digital information without the threat of being duplicated and copied. In a way, blockchain has laid the foundation of a strong backbone of a new type of online or internet space. Originally intended to deal with cryptocurrency, trying to explain the layman concerning the workings of its algorithms, the hash functions, as well as digital signature property, now, the technology experts are finding other possible applications of this flawless invention that could pave the way to the start of a totally new business process in the world.
Blockchain is a type of algorithm as well as data sharing structure for the handling of ledgers electronic cash not including the intervention of centralized administration program to record the financial dealings and transactions and the whole thing which holds value.
Blockchain Technology Prevail Over the Internet
Undeniably blockchain technology is an ingenious invention- it is the brainchild of a group of individuals or a single individual known by the pseudonym, Satoshi Nakamoto, creator of Bitcoin and as part of the implementation, they also devised the first blockchain database. Today, it has evolved into something bigger and greater.
By permitting digital information to be disseminated but not copied, this technology made the backbone of the latest kind of internet.
The Working of Blockchain Technology
Blockchain is made to produce decentralized databases. This technology is open source, so meaning anyone can view, edit as well as proposed modifications to its fundamental code base.
The most significant point concerning blockchain is that this technology was made to create apps which don’t need a central data processing service. So, meaning that if you are using a technology build ahead of it, the information will be kept on 1,000’s of independent servers all over the world.
The way blockchain works are through making a ledger. The ledger permits users to make transactions with each other- the contents of the transactions kept in a new block of every blockchain database. They must be encrypted with diverse algorithms. Because encryption utilizes cryptography to mix up the data kept in every new block, the word crypto describes the course of cryptographically keeping new blockchain information safe which an app may make.
To fully comprehend how blockchain works, you should appreciate the blockchain isn’t new technology- in fact, it only utilizes technology but in a different manner. The core of it is a data graph called trees. These are fundamental ways for the computer system to keep a chronologically ordered version of a set of data- permitting them to handle repeated upgrades to which data.
Blockchain is vital as the current data system is what can be explained as 2D- so meaning they do not have a way to monitor update to the main set of data. The data is stored completely as it is- with updates used directly to it. At the same time as there is nothing wrong with this, it does create an issue in which it signifies that information either need to be manually updated or this extremely hard to keep updated.
The solution which blockchain provides is significantly the making of versions of the information. Every block is put into a chain provides a list of the latest transactions for which data. So, meaning that if you can tie this functionally into a technology that assists the transaction of info between many users, you can make an independent system.
The reason why public ledger must be encrypted is that the participant in the transaction should see or edit the details. But more so, because the data is kept on and processed by thousands of servers all over the world meanings the service can work independently of a centralized operator.
Issues with Bitcoin’s underlying idea aside, the strength of this service is that basically, it is a system which works in a network of processing machine, also known as miners. All these are running the blockchain software- and function to compile latest transactions into a block which keeps the databases as latest as possible.
Blockchain Authenticity and Durability
Blockchain technology is something which minims the world of internet. It is chic robust, the same as offering data to the public using the world wide web, blocks of genuine information are kept on the platform of blockchain that is identically observable on all networks.
Jean Chalopin, Chairman of Deltec International, investor, and entrepreneur mentioned, “The important thing to consider, blockchain cannot be controlled by a single person, identity or entity, and does not have a point of failure. Just like the internet has proven itself as a tough space for the last three decades, blockchain as well will serve as an authentic, dependable global stage for business transaction as it keeps on developing.”
The Incorruptible and Transparency Nature of blockchain technology
Expert of the business claim that this latest technology lives in a consciousness state. Practically it checks on itself now and then. It is the same to a self-auditing system where its network reconciles each transaction, called as a block that occurs aboard at regular intervals.
This leads to the birth of the major properties of blockchain- it is extremely transparent, and it cannot be corrupted. Every transaction which happens on this server is embedded in the network, hence, making everything extremely visible all the time to the general public. What is more, to omit or edit information on blockchain asks for a humongous amount of hard works and a tough computing power. Among this, frauds and scams can be determined easily. For this reason, blockchain technology is called incorruptible.
Who are the Users of Blockchain Technology?
There is not a defined regulation or rule about who shall or use of this amazing technology. Though today, its users are commercial giants, banks as well as global economies only, the technology is open for the daily transactions of the whole public, too. The only flaw of this technology facing is global acceptance.
Decentralization is Very Vital in Blockchain Technology
For blockchain fanatics, you’ll hear more about the decentralized factor of it. This latest technology is so appealing because it is impervious to tampering, corruption as well as tampering.
The fact that blockchain technology makes use of a peer to peer network, ledger copies are kept in many diverse locations, and if you can monitor every one of them, you cannot destroy it. Also, because so many independent and different nodes are monitoring the ledger, adjusting and amending it in an unreliable manner will not go extremely fast as all other nodes will conflict with that transaction and will not put it into the ledger.
This is a significant part of why a lot of people think blockchain technology is the future of currency, and why this technology is being adopted in businesses other than digital currency or cryptocurrency.
Like many other things, there are always downsides.
Blockchain system has a steep learning process most essentially for the average person without a computer or technical experience. The computer science concepts and all the jargon involved might scare and intimidate away otherwise would be users. But, the growing popularity of cryptocurrencies is leading to the moving of blockchain into the mainstream with lots of resources available to make the subject more approachable.
There is also an idea called the 51 percent attack if for some reason 51 percent of a peer to peer network authenticates an invalid transaction. Still, it will get approved and put into the ledger by nature of how the process of validation works. Perhaps, today it is unlikely to occur, but it’s a security flaw which may have the possibility for exploitation in the coming years.
On the other hand, there are many users, developers as well as fanatics who believe this technology is the Holy Grail. A lot of people want to witness the latest technology succeed, so keep abreast for some developments as it unfolds.
The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.