Blockchain technology is not a new buzz to talk about. Everyone knows that it’s a record-keeping technology that works behind the Bitcoin network.
However, for many, Blockchain is a complicated technology but its working is simpler than any other technology. In this blog, I will explain Blockchain in detail plus, you will also come to know other essential things about this widely-adopted technology.
At its simplest, Blockchain can be defined as a system of record keeping that is impossible to be hacked, tracked or altered by any means.
Blockchain is the form of a digital ledger that is shared and distributed across the network. Each member of the Blockchian system can watch this ledger of transactions. This ledger contains blocks and each block of the chain stores the number of transactions. Whenever a new transaction is made, a new block is formed to keep the record of the transaction added to the chain.
All the performed transactions are added to all the members’ ledger. Blockchain is a decentralized system and it is managed and controlled by various members using a technology called Distributed Ledger Technology (DLT).
As I mentioned above, Blockchain technology works on a decentralized system. For example, when two participants are ready for a transaction then their information will be displayed on the peer-to-peer network in order to get validated. Once the transaction gets verified, now it will be added to a block along with other transactions.
The newly added block will then hash. Every block contains a record to the previous hash block that came before each block. It ensures managing the right sequence of the blocks in the chain and also reassures that the chain cannot be tampered.
Now, the new block is added permanently into the Blockchain and will be shared to all the members and here the Blockchain transaction is completed.
A lot of people consider that Blockchain and Bitcoin are the same thing. However, it’s not the case. Blockchain is the technology that works for Bitcoin. You can say that it’s a primary technology for Bitcoin. Both Blockchain and Bitcoin are closely associated, but they are not the same.
Bitcoin is a digital currency that was launched in 2008 by the pseudonymous Satoshi Nakamoto. Yet, Blockchain technology was a solution to run and monitor transactions for this newly launched digital currency since no bank or government was involved to control the transaction processes.
It’s no mistake to say that Bitcoin was the first user or initiator who benefitted from the Blockchain technology. People usually take both Bitcoin and Blockchain as the same thing since they both have simultaneously appeared on the surface.
Right after the successful deployment of Blockchain technology, many industries were seeing this solution with a broader spectrum and cyber security is no exception. Just like other markets, digital privacy experts are also using Blockchain technology to improve users’ online privacy.Many companies are planning to introduce Blockchian-based VPN apps to better control cyber threats and privacy invasions.
Although a VPN app is enough for your network protection still adding Blockchain technology might ensure an advanced level of cybersecurity. In fact, a decentralized VPN service called Mysterium is already using Blockchain technology to its user’s network. It’s an open-source network but it’s still under the works hence it’s not fully recommended to use for the network security as the system still lacks the essential security requirements.
Nevertheless, things just started to get better and we can expect some major advancements in cybersecurity altogether with the Blockchain technology.
There are still many confusions regarding the use of Blockchain Technology. A lot of people assume that Blockchain is a software or a chain that has some predefined uses. However, in reality it’s not like that. Blockchain can be used for multiple purposes or it can serve various industries. It’s not a single software program. In fact, Blockchain can be defined as a middleware program that might be used with any suitable application.
Blockchain has endless attributes. It can be used both privately and publicly. Public Blockchains take more time to transaction verification. Besides that, Blockchain doesn’t need any government or authority to look after its framework. It’s completely a decentralized system.
On top of everything, Blockchian is a cleverly designed system that makes consensus on the entire network before finally making any decision on the network.
It’s a transparent technology that enables all the members to view transactional activities without any double-dealing.
Another significant characteristic of the Blockchain technology is its power of faster settlement. Unlike traditional banking, Blockchain technology helps users to transfer money in a more secure and faster manner.
Also, the powerful encryption adds another layer of security to the network and that’s what makes Blockchain a highly-secure network to perform transactions safely.
There you have it! Blockchain technology is not going to be old anytime soon. It’s one of the best technologies that should be deployed in various industries to manage work with utter security and transparency. By the end of this year, we can anticipate this technology to be a part of various networks and businesses from cybersecurity to music to real estate and more.
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