Blockchain technology : A revolution in transaction system

Blockchain, cryptocurrency or let’s call it one of the greatest technological breakthroughs since the Internet

blockchain

 

What is Blockchain?

blockchain

The blockchain is a distributed database system that acts as an “open ledger” to store and manage transactions. Each record in the database is called a block and contains details such as the transaction timestamp as well as a link to the previous block. This makes it impossible for anyone to alter information about the records retrospectively. Also, due to the fact that the same transaction is recorded over multiple, distributed database systems, the technology is secure by design.

With the above in mind, “blockchain is immutable” – information remains in the same state for as long as the network exists.

In simple terms, Blockchain puts the trust from third parties into our own hands, allowing us to validate our own transactions and verify our own data. The technology allows for much faster and more secure global transactions, drastically expediting globalisation.

There are various functions available in Blockchain… They define it out of all other competitors and the functions are compiled below;

  • Distributed agreement
  • Transaction verification
  • Uniqueness
  • Value transfer
  • Security
  • Cryptocurrency
  • Immutability
  • Platforms for smart contracts
  • Smart property
  • Smart contracts

What is cryptocurrency?

blockchain

A cryptocurrency is a medium of exchange such as the US dollar. Bitcoin, the first cryptocurrency, appeared in January 2009.

Like the US dollar, cryptocurrency has no intrinsic value in that it is not redeemable for another commodity, such as gold. Unlike the US dollar, however, cryptocurrency has no physical form, is not legal tender, and is not currently backed by any government or legal entity. In addition, its supply is not determined by a central bank and the network is completely decentralized, with all transactions performed by the users of the system.

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The technology is based on public-key cryptography, meaning that the communication is secure from third parties. This is a well-known technology used in both payments and communication systems.


Where Blockchain can be implemented?

blockchain

Banking is not the only industry that blockchain will revolutionize, here a few great examples of why blockchain will be so powerful :

  • Voting – with a distributed ledger, we can validate each and every vote and ensure no manipulation by third parties is occurring.
  • Allows the unbanked to send money across borders – over 2 billion people do not have access to bank accounts, blockchain will enable them to send money home and economically better their families.
  • Secure data storage – encrypted data will be fractionally stored across the blockchain, giving only the owner of the data access to the data when required.
  • Contracts – smart contracts can be written into the blockchain to automatically trigger responses based on real-time events.

Who controls the blockchain?

No one controls the blockchain. In other words, it is decentralized by design. The network operates under its own management, on a peer-to-peer basis. Bitcoin, which is now widely accepted by businesses around the world, is managed by its network, not by any central authority.


How powerful is blockchain?

A current case happened when China endeavored to get serious about clients and control the cryptocurrency inside their border. This sent a brief ripple through the world, where we saw a brief drop in the estimation of Bitcoin. But within days, Bitcoin continued its meteoric rise. In other words, not even a country as powerful and controlling as China can control the blockchain.

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Without a doubt, it is this exceptionally decentralized plan that has enabled Bitcoin to end up the standard, as well as has now brought forth many new cryptographic forms of money and another term: ICO (initial coin offering). By its inclination, utilizing blockchain innovation, it is totally unregulated and frequently exceptionally unsafe. ICOs are turning into a most loved method of crowdfunding for things like capital for new companies. At the point when an ICO goes out, a level of the recently “stamped” cryptographic money is sold either for money or other built up digital forms of money.


Who will use blockchain?

With blockchain, clients can make exchanges for nearly anything on a shared premise, with no sort of bank association. While banks may lose some of their turfs as the agent, many are presently offering and exchanging different digital currencies. They are additionally exploiting the tremendous cost investment funds in information administration and other record keeping. Truth be told, banks are scrambling to enlist blockchain engineers. Experienced blockchain engineers are relatively ready to request any compensation they like.

We have extremely just started to see where the blockchain will take us. Some are calling this, presumably as it should be, Web 3.0. The tremendous potential for new business applications is deserving of another article in itself, and likely more than one.


Blockchain technology : A revolution in transaction system
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