Blockchain technology is a way of storing data on an unbroken registry of transactions. It’s the breakthrough that allows information to be distributed just as it would be on an untampered web page, which is why many see blockchain as one of the world’s most important inventions since the internet.
Every time there are transactions, their details are encrypted and they are added to a chain. And they are verified by every computer in the system.
This makes it almost impossible for hackers or anyone else to corrupt any information stored in this system.
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The blockchain technology is, in essence, an electronic ledger that keeps track of every transaction that takes place. The concept has been around since the 1990s when it was called “cryptocurrency” but it didn’t take root until 2009.
That’s when two cryptography researchers got in touch with each other to discuss their ideas.
One was in Switzerland and the other one in Israel, but both were working on the same idea. And they worked together for years, refining what they had come up with.
Here are some points about blockchain technology-
1. It’s a distributed ledger
The blockchain is decentralized. This means there is no central authority that controls it.
And the network of computers that are involved in the making of this new money are also decentralized. This makes it impossible for any government or government agency to shut it down.
2. All records are encrypted
For all transactions to be recorded in the ledger, they are encrypted with a strong cryptosystem called crypto-hash function.
So no one can read them except the participants within the network they belong to.
3. Transactions are linked to a transaction before it
In the blockchain, every transaction has a link to a previous transaction. This is what keeps the chain going on and on.
And because every computer in the chain has all this information with it, there is no chance of hacking or data being tampered with in any way.
4. It’s decentralized and has a consensus mechanism in place
All transactions in a blockchain have to be validated by the consensus protocol among different computers in the network.
If they fail to do so, then they will ignore that transaction when adding new records with information from other transactions.
Since the blockchain is a shared and transparent source of information, it cannot be stopped or stopped from broadcasting what it has in its possession.
This means every transaction on the web is recorded and included in the ledger. Because of this, all transactions can be validated by anyone on the network of computers participating in making this new currency.
5. It’s created using cryptography
The cryptography that makes up this new currency was developed by such pioneers as Satoshi Nakamoto and Adam Back, who was also the co-founder of BlockChain Labs London.
The features that allow them to transact money with less risk were also invented by these inventors. It’s their work that makes this new model possible.
Blockchain can be used for legitimate purposes, such as tracking diamonds so they are not mined in the wrong places.
But it can also be abused by criminals to hide money, sell fake documents and even to serve as backdoors into companies’ confidential networks. And that’s how it became an attractive target for cybersecurity companies.
6. It creates disruptive technology
The blockchain technology is already showing signs of disrupting many industries across the globe- banking, transportation, manufacturing and government, just to name a few.
This new form of money has the potential to improve our lives by enabling low-cost global transactions in an efficient manner.
7. It’s revolutionary
The blockchain is a new model of money that allows one person to make transactions and records and share their data and information with other people without the benefit of a middleman.
Instead, it relies on everyone in the network to validate transactions and maintain records by their collective effort. And because the entire process is decentralized, this makes it much more secure than traditional systems.
8. It’s an innovation
Because it makes information public, there are no concerns about privacy or security like we’ve seen in centralized systems such as email and social media sites such as Facebook.
9.It’s revolutionary
The blockchain is a disruptive technology that allows for the creation and exchange of new currencies without central banks and banks.
It’s this kind of innovation that makes it so revolutionary in the financial industry.
10. Blockchain is not just a fad
The fact that blockchains can be used in almost any industry to improve efficiency and reliability means it has the potential to become as widespread as the internet itself.
Within a decade, we could see millions of people getting rid of traditional databases and transferring all their data to this new platform.
