Why is it making a buzz online?
A lot of you must have come across the word Blockchain when reading articles about cryptocurrency. Some must have assumed that it is some sort of a virtual currency. But Blockchain is a totally different thing.
Others say that it is the future of the internet. This new technology was primarily introduced as a part of bitcoin. But what and how block really works is still complicated to a lot of people.
In a nutshell, blockchain is a public online ledger where important transactions are being stored and can help trading way easier and secure. It is a distributed network, thus, it makes it almost impossible for hackers to access since there is no single database that they can focus on. It is like Google docs where you can share the information with others.
So how does it really work? Imagine blockchain as your office building. Your office building is made up of different smaller offices and cubicles, these are what we call “blocks”. Each block contains information with unique keys. All transactions are time stamped and are related to the block before and after it. The only person who can input information in the block is its owner.
No one really owns the blockchain. It is owned by everybody. It is networks of different computers with the same history and is constantly moving and updating.
Understanding Blockchain can help you and your business save money. As this new technology has been rising, lots of people are very keen to know what it can do to help businesses grow. First off, blockchain can omit any third-party middlemen. There will be direct transactions from one business owner to another business owner. You can have a deal online and make a record of it in your “block”.
Once it is there, time will be indicated and you cannot edit it anymore. Since security is one of the most promising features of the blockchain, it is almost impossible to alter any document. Security isn’t an issue since Blockchain uses cryptography. You can trade without really meeting whoever the person is on the other end. You can now bypass banks and sometimes government agencies as long as all your transactions are recorded in the history of your block.
Blockchain can possibly hit the financial industry particularly banks. A rough estimate of $12 billion per year can be saved by using blockchain technology in their operation. Other financial sectors are quite threatened that it might take away some jobs in the industry. While that can undoubtedly happen, there will also be new roles that will emerge as blockchain technology grows.
The virtual currency has been very popular nowadays and we cannot deny the fact those there lapses when it comes to security and identity security. Blockchain saves you from that worry; you don’t have t trust the person but the system that was designed to let you make your transaction in a safe and secure way.