What the heck is Blockchain all about?
What the heck is Blockchain all about?
Blockchain is a public record database of
all the transactions done by the users online using Bitcoin as the mode of
payment. It is a public ledger of all the transaction executed on the internet.
Each payment that is done is recorded in a form of block which is added to the
database of the blockchain. The blockchain has the complete information
starting from the address of the user to the balance history and there are
millions and millions of blocks in a blockchain.
Blockchain is actually a proof against all
the transactions and credentials carried out online. It is a technological
innovation which uses Bitcoin or similar as it’s unit of currency. This technology have
been conceived in 2009 where it actually serves as a public ledger on internet
as it can be accessed by everyone.
Blockchains uses cryptography and digital
signatures to carry out transactions which prove the authenticity of identity
and access the users right to use the digital currency.
Blockchains are created using blocks and Blocks
are actually a virtual bank statements of the transactions.These blockchains
are the full history of details of credentials done on the network. Every
person who creates a block and pays fees for transaction is known as Miner and
this process in known as Mining.
Miners can not only carry transactions to
compete for creating more blocks but they can also exchange bitcoins for
currencies, products and services.
A blockchain comprises of blocks that hold
batches of blocks with genuine transactions. Each block is linked to the prior
block with a hash. These linked blocks form a chain in a linear fashion and it
is based on specific algorithm for different version of history.
A blockchain actually consists of two kinds
of records which is transaction and blocks. Blockchain is a person to person
technology that protects the integrity of the virtual products or currency. It
allows one to create safe money online and give us an honor to protect any
piece of digital information from others.
A blockchain works on public and private
keys. A public key is a user’s address on blockchain and bitcoins spent by that
users are recorded under that address. A private key is actually a secret code
used to access the bitcoins using it as a password. The data stored in
blockchain is incorruptible.
A blockchain provides the secure internet
transaction and turned it possible for two strangers to carry out digital
property exchange without any prior relationship. A blockchain method had
simplified and made it easy for computers to carry out business activities
effortlessly with security and freedom.
A blockchain technology makes it
decentralized public ledger which is not controlled by anyone and it can be
managed via community of users online. Blockchain technology have threatened
the payment processors like banks, western unions and money exchange offices
the most as with time they will give them so much competition that their
existence may be put to question in years to come.
A blockchain technology have simplified the
transactions online with a nominal fee compared to the fees charged by payment
processors as they charge up to 5% whereas these charge only 2% making it a
best option for the users world-wide.
A blockchain technology have made is easier
without a third party involvement as transactions are processed instantly
irrespective of where you are and what time it is. A block chain is even
challenging the credit card companies as it’s safer and easier to store your
information on a computer or phone rather than keeping it in your pocket. The
transactions carried out through credit card takes time to process and clear
whereas there is no such issue in using Bitcoins.
A blockchain implementation have given rise
to many wallet applications like paypal, groupon etc who had developed a mobile
payment strategy and increased the use of digital currency to a much higher
degree.
The fact that blockchain technology works
on an imaginary currency like Bitcoin and yet it is so widely used makes it a
huge breakthrough in our times. Things that seemed impossible few years back
are now easily done because of this virtual transactions done on the internet.
A blockchain is made up of bitcoin nodes
all around the world which send information to each other until the whole world
know about the transaction carried out within seconds. The block size is
limited causing the decentralization of blockchain. Blockchain is created by
blocks and blocks are added when Bitcoins are used to carry out a transaction
and Bitcoin can only be used with the consent of all the users thus making
Blockchain a democratic technology. A limited number of block sizes helps in
keeping it decentralized and that is better in every way.
The Blockchain technology is not only
limited to online transactions but the general idea of this technology can be
applied to the supply chain of retail, agriculture and pharmaceuticals. The
decentralized database would lead to reduce in fraud and theft enabling new and
improved financial services.
A blockchain technology should be further
studied as it only depends on a digital record and efforts should be made to
match the digital currency with the physical assets in the real world.
For the transactions to proceed one needs
to spend a particular amount but blockchain had made it possible to invest not
only once but twice without even owning a penny in your account which is a boon
in everyway. Many people can start a business without a minimum capital and
flourish a lot.
Blockchain technology is still at it’s
initial steps and need to achieve much more as it’s grows and expands. There
are wide range of possibilities and obstacles in it’s paths to switch from
digital transactions to commercial transaction in reality. And as with every
technology the boon is greater but the impacts and disruption
also goes hand in hand which need to be studied before implemented.
also goes hand in hand which need to be studied before implemented.
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