Blockchain Is Your Future
Blockchain technology is a foundation for cryptocurrency. It is also a term that made its way into our everyday life. However, there are still a lot of people who don’t understand what it is and how money is made in this mysterious world of blockchain technology.
Blockchain is really not that complicated to understand. The word itself is self explanatory, a blockchain consists of blocks that make up a chain. Just like a 24 carat rose gold cuban chain that you will be able to afford once you get a firm grasp on blockchain technology.
You are probably curious of what are these blocks and chains for. Blocks contain transaction data in cryptographic form. All blocks are lined up in a single chain with a strict sequence order and are all interconnected. Every new block requires a piece of information from previous blocks.
Blockchain works very much like Torrent. Torrent is based on P2P (peer-to-peer) network, where all participants have equal rights. When we download a torrent file we don’t use a centralized server. We download that file from a user on torrent network, a user just like we are. If there are no participants in the torrent network, then we won’t be able to download files.
All blockchain transactions are decentralized, meaning that they go through peers rather than a central server. All peers are connected to the same network - Blockchain.
Things are coming together now, don’t they?
Core Blockchain components:
Decentralization - there is no single server storing the data. Every participant of a blockchain is a server, they make sure that a blockchain functions properly and all data is legit.
Transparency - transaction and contract information is stored permanently on a blockchain, and available to public access. There is a record of every single transaction ever made and it can’t be changed or manipulated.
Unlimited scalability - potentially, there is no limit to the amount of blocks that can be created on a blockchain. That is why often times a blockchain is compared to a supercomputer.
Security - to make a new record on a blockchain, it requires consensus of the network in a form of a conformation of the previous block. This allows to add only legitimate transactions to the record. It’s virtually impossible to alter any information on a blockchain, because it would require to alter every single block that previously came on a blockchain. And that is just impossible to do due to a lack of computing power and the speed at which new blocks are created.
Blockchain network is dispersed, it’s supported by computers from all over the world. There is no central server that can be hacked or shut down. Blockchain is public and secured at the same time, and all its data is encrypted. Decentralized network allows to exchange information between peers from different countries and jurisdictions, solely based on agreements between each other without any middlemen or regulators. Absence of middlemen (ahem Banks and Government) result in low and fast transaction fees. A blockchain is designed in such a way that nobody can block transactions on the network, allowing every user to be independent.
Blockchain technology is not beneficial just to cryptocurrency transactions, it is extremely useful for the entire fintech industry. Everything that has to do with transactions can be supported by blockchain. Storing data, confirming authenticity, copyrights, services, trading and etc. can all be supported by blockchain in the most effective way.
The possibilities of a decentralized network are endless. It can potentially bring corruption to an end, maybe even save somebody’s life. It will lead us to a better future.
Now tell us, are you still sceptical about Blockchain technology?
Stay tuned for more.