Blockchain Technology

  • It is a Digital, Decentralized, Distributed ledger
  • Blockchains are a new data structure that is secure, cryptography-based, and distributed across a network.
  • The technology supports cryptocurrencies such as Bitcoin, and the transfer of any data or digital asset.
  • The present blockchain ecosystem is like the early Internet, a permissionless innovation environment in which email, the World Wide Web, Napster, Skype, and Uber were built.

 

How this operates?

  • It allows transactions to be simultaneously anonymous and secure, peer-to-peer, instant and frictionless.
  • It does this by distributing trust from powerful intermediaries to a large global network, which through mass collaboration, clever code and cryptography
  • It enables a tamper-proof public ledger of every transaction that’s ever happened on the network.
  • A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database.
  • Each time a block gets completed, a new block is generated.
  • Blocks are linked to each other (like a chain) in proper linear, chronological order
  • Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data

 

Benefits of blockchain technology:

  • As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.
  • All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
  • Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
  • It allows decentralization of the technology.

 

Uses of Blockchain

Cryptocurrencies

  • Most cryptocurrencies use blockchain technology to record transactions. Example, the bitcoin network and Ethereum network

Banks

  • Major portions of the financial industry are implementing distributed ledgers for use in banking

Other uses

  • Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data
  • Data can be sales, tracking digital use and payments to content creators, such as wireless users or musicians.

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