Many people are struggling hard to know what is blockchain technology?
According to Wikipedia, from a cruising altitude, this technology may seem quite familiar like what you are acquainted with. With this technology, most people can write entries into an information record and a user community can control how this information can be changed and updated. Some people believe that Blockchain technology is usually linked with cryptocurrencies like Bitcoin. But this is not the actual scenario. So, let’s find out what is blockchain technology and other factors related to it.
Find out what is Blockchain Technology:
This technology is a collection of records many people rely on. Instead of relying on a single entity like any financial institution or bank, hosted on a single server. Each block in this technology represents various transactional records and thus the chain elements connect them with a hash function. When records are created they are established with diverse computers network and connected with the preceding chain entry, while creating a blockchain.
The complete blockchain is reserved on a large computer’s network that means no one has control over the history. Now, that is one of the most crucial components because it shows all results happened in the chain previously and also that no one can go back and alter things. It also makes blockchain a public ledger which can’t be easily tampered, also providing a layer of protection along with standard centralized information database. Because blockchain can manage a lot more information, it can be used in bitcoin and other cryptocurrencies as well.
Cryptocurrencies and Blockchain
As we’ve discussed above that Bitcoin and other cryptocurrencies use blockchain technology, it is also important to know that they do so in different ways. The technology comes with a lot of interesting potentials, but still, you need to consider a few elements before we claim that this technology is apt for future.
Blockchain Separates from Bitcoin
Today, many people seek the answer of what is Blockchain technology. There are many who trust Bitcoin and blockchain are one and the same, despite the fact that they are definitely not. The individuals who began to acknowledge around 2014 that blockchain could be utilized for more than digital currency began to put resources into and investigate how blockchain could modify a wide range of sorts of activities. At its center, blockchain is an open, decentralized record that records transactions between two groups for all time without requiring outsider confirmation. This makes a to a great degree effective process and one individual foresee will drastically diminish the cost of transactions.
At the point when business people comprehended the authority of blockchain, there was a surge of speculation and revelation to perceive how blockchain could affect supply chains, human services, insurance, transportation, voting, contract service and then some. Almost 15% of financial institutions are right now utilizing blockchain innovation.
To sum up
After having a precise understanding of what is Blockchain technology, you’ll be amazed to know there are ample benefits of blockchain technology like Decentralization which is the major concept of it. You don’t need an intermediary or a trusted third party to validate transaction rather an accord mechanism is used to settle on the validity of the transaction. Apart from this, when you use blockchain technology, you will get transparency and trust, immutability, high availability and cost saving.