The Blockchain is a type of distributed ledger, which enables records to be stored and arranged in a block-like manner. It is a digital ledger that cannot be easily corrupted that has the capacity to record anything of value ranging from financial transactions to non-economic information. It is more like a spreadsheet that is copied a thousand times across a massive network of computers and yet not stored in any single location, rather it is a ledger that is decentralized maintained by a group of peers working together instead of a singular authority.
Described by most experts as one of the most ingenious digital inventions of the century, this technology is gradually becoming something bigger as it is gaining acceptance steadily across different quarters. This, however, is linked to its unique features which include its incorruptible property. This is because an attempt to alter any information on the blockchain will warrant a huge amount of computing power to override the entire network which is almost impossible as this technology enjoys an inbuilt robustness like the internet. The blockchain technology is also decentralized by design. This entails that it keeps running on user to user basis which implies that it lacks centralized points of vulnerability that can be exploited by hackers. It depends on the encryption technology in the place of the conventional username-password security system. A user accesses his account through a private key, an array of numbers that is randomly generated. All that is required of users is to ensure that the key is always private and your data is as good as safe in the blockchain network. Another feature to take note is that it is transparent, as it is a public record of activities that can be seen by all participants. It has the capacity to automatically update itself every ten minutes and reconciling any transaction that occurred within that time interval. It solves the problem of manipulation and serves as a mechanism to ensure that everyone transacting is highly accountable. It eliminates the need for the presence of a third party in a transaction as it records the transaction not just in a register but across connected registers ensuring that transactions are well documented and validated.
From these features, it can be deduced that this technology holds lots of benefit for its users. These benefits range from its immutability to its permanence as long it remains operative. It is automated, very fast and cost-effective as well as it solves the double spending problem and is absolutely secure.
The blockchain technology and cryptocurrency have always been used alongside each other in the digital community. This is because; this technology underpins these digital currencies ensuring that transactions are conducted and recorded without fear of distrust. Apart from this, this technology can be applied in other non-cryptocurrency related areas. These include the application of blockchain in identity management. It can be used to ensure that digital identities are well tracked, safe and effective. This will go a long in crime reduction as hacking on the blockchain is practically very difficult. Blockchain technology can be used as a means of data storage since most current data storage services are centralized which could be dangerous when vulnerable. The secure, transparent and public nature of this technology suggests that it can be incorporated into the electoral system of nations. As it holds a possibility of the emergence of the era of digital voting, this will reduce cost and electoral fraud which is usually an issue, especially in developing countries. Also, blockchain has the capacity to host smart contract services. These contracts are common terms and agreements which are programmed to execute automatically once the agreement is reached. A platform that depicts this possibility is ethereum, a digital currency.
Obviously, the blockchain technology has come to stay, even though it is still at the initial stage of development, its application is very progressive. However, its full impact on the society, businesses, government, and industries is yet to be fully ascertained even though it holds a good promise of great benefits. Reach out to us today to learn more about Blockchain technology, and how it can help you organization go to the next level 206-250-6625.