Some call it ‘the second generation of the Internet’ and others refer to it as ‘one of the fastest technologies we have ever seen’.
If you have heard about Blockchain but have no clue about its meaning whatsoever, you are not the only one. However, it is definitely important to know all the things the Blockchain technology does – and how it has changed the world so far.
So, what is the Blockchain?
Basically, it is a technology that acts as a ledger between transaction made in Bitcoin or any other cryptocurrency. Through the Blockchain, no transaction can be seen publicly and chronologically, ensuring maximum safety for both sides of the transaction.
The digital currencies recorded in a blockchain are not saved in files. Instead, they are represented by transactions that are recorded in ledgers, global spreadsheets or multiple files that leverage the resources of a large peer-to-peer bitcoin network which verifies and approves them.
The Potential Development Of Blockchain
The history of this technology dates back to 1981, when its inventors were attempting to solve the Internet’s problems of security, privacy and extended cryptography. Even though more than three decades have passed after that, it was these couple of years when this technology was developed to a point where it ensures the integrity of the data exchanged without going through a trusted third party.
Blockchain therefore operates in a chain of ledgers – protecting data and revolutionizing the way information is stored and transactions occur. With its main goals being speed, lower cost, security and fewer errors – it is a rising technology which has already been adopted by big banks and governments to eliminate any central points of attack and failure.
Even though Blockchain is presently ‘bonded’ with cryptocurrencies, its future will definitely change. The model of securing a transaction for digital payments has only been linked to bitcoin and cryptocurrencies to ensure proper testing and development over the years.
A Final Word
In the end, it is safe to say that blockchain is a durable, reliable and high-quality technology which ensures a trustless and disintermediate exchange. It is also transparent and immutable, simplifying the ecosystem on a different level and ensuring faster transactions with lower costs.