Prior to explaining what is blockchain, we must first comprehend the definition of Blockchain and its useful features. With the famous cryptocurrency Bitcoin continuously overpowering the other cryptocurrencies, it is crucial to recognize the reason for Bitcoin’s success and the technology that drives Bitcoin and other alternate digital currencies.
Here are the questions this article will answer:
- What is blockchain (simple definition)?
- What makes the Blockchain safe and secure?
- What is the blockchain value?
- In which areas can we use the blockchain?
As at this moment, the digital currency market is becoming more and more recognized. Despite being the main technology which enables cryptocurrencies development, blockchain is no very well know or understood by many.
What is Blockchain?
Essentially, all the transactions that are made from specific cryptocurrencies such as Bitcoin are publicly and sequentially monitored via a digitized register (ledger). The data which is created from the transactions of the two users is stored safely into cryptographic blocks – meaning, all the data is connected in chronological order as a means to prioritize the data that is most important. The data of each block is stored as a chain throughout the register and for this reason, the title is quite literally Blockchain. The organization of the data allows one to detect and confirm all the transactions that have been made – accordingly, the primary purpose of The Blockchain is to validate the transactions between the two users. However, it has further functions we are not aware of as of yet.
Additionally, it has the practicality to validate the exchanges of stocks and shares that are made by the users. It is too an effective tool that confirms any contracts and occasionally the votes cast in online voting, which are made to be secure without subject to change.
Another point of view is that the Blockchain works more or less as a spreadsheet does. Think of it as a spreadsheet that has been reproduced hundreds of thousands of times across a network of devices. The network has then been created in order to update the spreadsheet continuously. This is the fundamental of what the Blockchain does.
All the data kept on the system is shared publicly throughout the database. The user benefit then is that the information of the transaction has no location, making the data easier to validate and verify.
What makes the Blockchain safe and secure?
With its own set of features, it works as an effective system, nonetheless, it doesn’t explain why it is secure. With that being said, it is important to mention it offers a great level of security where all the transactions are to be certified and guarded inside of each block, therefore, at this point it is not possible to make any alterations. More specifically, every block that stores your data will automatically connect themselves to each previous block with a timestamp that highlights the exact time the action happened along with the transaction data.
Blockchain and Bitcoin value
By this point, we recognize a Blockchain is a form of a digital technology that fills the purpose of adding technical features to a cryptocurrency. For many investors, the Blockchain is a great asset to the cryptocurrencies and is hugely beneficial with its high levels of security and stableness. The blockchain has simply allowed digital currency technicalities to thrive. As the result, it has added much value to the cryptocurrencies. Most notably to Bitcoin, whose creator Satoshi Nakamoto has based the features of Bitcoin on the Blockchain. Here is where the connection between Blockchain and Bitcoin lies. It was the Satoshi Nakamoto, who had devised this technology specifically for the Bitcoin.
What is the value of Blockchain technology?
Overall, in the day of today where all data is voluntarily published online, the internet has made it possible to store almost everything. The internet enables us to freely voice our mind and expose our world. Therefore, there are no diversions. Blockchain happens to do the same, however, just specifically for the digital currency. Cryptocurrency and Blockchain together are a simple and efficient method/technology to make a transfer of money globally by diverting any banks or governments.
Furthermore, it fixes any manipulation and mishaps through scams that are often experienced through the internet since the technology is in a constant state of Transparency.
Each time a transaction is made, all the data is automatically checked in and is made into a block. Here are two key safety features that Blockchain possesses:
- The data is made transparent from the moment it is fixed within the system and then made public.
- After all, once the data is published into the Blockchain, no information can be altered which means that all the information stored on the blockchain is permanent in nature and cannot be tampered with. The decentralized ledgers and the security of the data make it highly transparent and breach-proof.
Further blockchain applications and uses
Blockchain Technology is yet to be explored to its fullest potentials. While Cryptocurrencies or digital currencies are the most popular and well know applications of the Blockchain technology, there are many other ways in which Blockchain can provide solutions to complex business problems. The decentralized apps can help with in a number of ways including supply chain management, free fair, transparent voting and much more.