Blockchain may be a trend you’ve heard of. Blockchain is still a relatively new concept for many people, but this doesn’t mean you should be afraid. This is because the idea of this is not new. It has been around since 2021. So what’s the point of it all?
The main goal of Blockchain technology is to implement distributed ledger technologies (DLT). What does this mean? It simply refers a new financial transaction and recording system that uses peer to peer technology to allow real time transactions and calculations. The idea originated on the Internet. However, it has now spread to other areas like finance, software development, and real-estate.
Vitalik Buterin is one of the founders and leaders of the Blockchain project. This is basically a digital ledger that functions like the original internet, but is less fragile than the webbed Internet. Transactions are recorded on the distributed ledger which ensures that all the parties involved in the transaction have their updates at all times and that nobody can tamper with them. The distributed ledger is required to ensure that transactions are secure and cannot be reversed.
Apart from ledger transactions, the Blockchain also includes smart contracts, a sort of virtual machine or a computer program that can be programmed to carry out certain tasks. For instance, theICO platform allows its users to create smart contracts that perform the function of collateral exchange, settlement management and other such transactions. Hence the Blockchains use a sort of a virtual machine or computer program to facilitate the transfer of currencies and other monetary values. This concept is not restricted to currencies. Blockchain technology can also be used to record and transfer financial instruments such as stocks, bonds, and commodities.
Without their consent, personal and organizational data cannot be accessed. This is the very essence of privacy and an essential feature of the Blockchain technology. Blockchain transactions are encrypted. Transactional users’ identities are hidden. Hence the transactions run virtually risk free and are safe from any unauthorized access.
Blockchain transactions are independent from public ledgers. There is no possibility for theft or unwanted transactions. In contrast, the public ledgers are susceptible to hackers and there is every possibility of someone tapping your financial data. Blockchain transactions are transparent. They are managed by a group of users who are susceptible to being infected with malware. Hence the chances of hacking and phishing are very much reduced and if your digital ledger is hosted by a renowned institution, then you can be rest assured that your data is absolutely safe and secure.
The popularity of the Blockchain has tremendously increased in recent times as more people realize its potentiality and the immense benefits it offers to every individual. Many financial institutions have adopted the technology to improve their internal processes. Financial institutions such as banks and hedge funds, asset managers, and other financial institutions are using Blockchain technology internally and successfully integrating this technology into their systems. Some well-known corporations like PayPal, MasterCard and Visa have already adopted the Cryptocurrency concept to their internal use. As more people become aware of the benefits of Blockchain technology and the necessity for it, it is evident that Blockchain use is growing.
Experts in Computer Science and Math are gradually accepting the concept. Numerous renowned universities have begun to research the implications and potential uses of the public blockchain technology. With the growing demand for the Cryptocurrency, the developers are developing the prototypes for the upcoming generation of the cryptocurencies like the Maidsafe and the Counterpart. The future looks bright as more people join the concept and competition grows between different cryptospace participants.
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