Know the Basics of Blockchain Technology!

As clouds for the rain is blockchain for Bitcoin. The role of the blockchain technology has been increasing by each passing day and it is no more confined just to the digital currency and transactions. Before understanding what is blockchain you first need to have the basic idea of the digital currency; Bitcoin.

What is Bitcoin?

Bitcoin is the currency of the Internet and you may call it the digital currency.

 

 

Just like gold and other assets, Bitcoin is also an asset which digital in nature and is commonly termed as cryptocurrency. And blockchain technology is cryptocurrency’s backbone.

Cryptography Network

Everything we do in the modern world involves some kind of information/data sharing and blockchain technology distributes/moves the information across hundreds of thousand nodes interconnected through network.  It means that blockchain is a bold step towards decentralization. It doesn’t regard any centralized authority or doesn’t need the permission of an authority.

Blockchain is literally a form of digital ledger and it contains virtually all the transactions which we undertake each day. By using the cryptography, anybody on the network can access this digital ledger. Prior to the verification or recording of an exchange, cryptography network requires approval from all connected computers.

How Blockchain Works?

We all create spreadsheets at least once or twice a month and maybe tens of sheets a day. Now consider creating various copies of a single spreadsheet and sharing it to different computers connected to the network. And also assume that this network is configured for automatic spreadsheet updating. This is how blockchain works and the information in a blockchain depends on the continuous reconciliation of the database. What it does? The benefit of this dedicated decentralized data sharing is that you can easily verify the credibility of transactions.

The fact that the blockchain isn’t centralized at any stage means that hackers can’t corrupt the information because to that, they’ll have to hack all the computers connected which is virtually impossible.

Why We Need Blockchain Technology?

The conventional approach is that a person shares a document with another person and he or she revises it. Until you receive back the revised version, you can’t proceed and it takes time. Conventional database works like this and the computers accessing the network had to wait for the one who holds the file and undertakes the revision and everybody else is locked till the current revision is completed. In simple words, two authorized individuals can’t work on a file at a given instance. It may not seem a considerable issue under most of the circumstances but take a minute to think about a banking transaction via an ATM machine!

 

It is highly significant for the banks and financial institutions to deal with the file-lock problem during an alteration or revision at one server. Thanks to the blockchain technology, a transaction is made visible and is verified instantly and the record is updated without a delay. It helps banks maintain money balance and ensure instant updates.

Are You Sure You Never Used Blockchain?

Think again! Based on the above information just challenge your mind to think of blockchain based activity. No? You must’ve heard of Google Docs or worked on the files shared over Google Docs. These documents are accessible to all the authorized computers and are editable from any computer at any given instant. There’s no central authority to stop others from editing or making revisions.

A Google Doc is a simple document that is shared and the permitted accounts/computers have the right to simultaneously edit the shared document. Now imagine such sharing by scaling up the size – say thousands of participants – and you’ll have a clearer understanding of blockchain technology.

Less Complicated

The blockchain technology is far less complicated than most of the people think – perhaps for its name – but actually, the technology is fairly simple. Apart from banks and financial institutions, blockchain technology can also businesses, organizations, and firms. Consider a firm sharing legal documents from one expert to the next, waiting for the revisions and improvements and it could take a week or even a month to set it the right way. With the help of blockchain technology, a firm can share the document to all the concerned experts and ask them to revise the document simultaneously. It is less time consuming and all the concerned individuals will be able to see live updates and the latest version of the file.

There’s no need to move the file forward and receive it back. Sharing is the most efficient and effective solution with not only keeps things simpler but also ensures the credibility of the document.

Save and Verified Information

Not only that blockchain lets you get rid of the hacking-threat but it also ensures updated and verified information. Think about the plie in your study filled with tons of raw information vulnerable to damage. Unauthorized access to confidential files may ruin the whole effort and once the information has been comprised at a centralized system, who’re you going to hold responsible?

 

I don’t claim that blockchain is 100% safe! But it certainly makes life considerably tougher for the people with malicious intentions. The hackers hide & seek will definitely continue but if hackers use powerful tools then we also have the right to use brute force to protect our data and systems. Today, blockchain promises a lot and something else in future will replace blockchain with better functionally and tightened security.

Blockchain Technology! The Promising Future

Suppose you have a precious diary full of sensitive information but you keep it locked in your room. Anyone looking for this diary will target your room and focus on unlocking it. If you divide the diary page by page and place each page at a different place, things will be much complicated, unsure, and risky for the thief to attempt accessing the diary’s content. This is how blockchain works. It divides the information into pieces, bits, and distributes across thousands of authorized systems making it extremely hard for the hackers to access compact whole unit of information. So the future is promising and we’ll definitely experience expansion in the use of blockchain technology.

 

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Tags: Artificial Intelligence, BitCoin, Bitcoins, Blockchain, BlockChain Testing