Blockchain is going to be the newest and the best thing in computer technology in the financial sector, changing the financial system and the very way of making financial transactions. The blockchain is not based on any already existent technology. It is actually a new way to run computer programs in a redistributed, open source way operating in a peer to peer manner that is not only inaccessible but also does not need any trustworthy intermediaries to validate transactions.
What is the Blockchain Technology?
Although the origin of blockchain can be dated back to the 1990s with the advent of the internet it was in 2008 that its full concept was laid out by Santoshi Nakamoto with his proposed cryptocurrency, the Bitcoin or “digital gold” as it is often called. He went further by developing the concept of blockchain into a fully functional program with the best security features in cybersecurity. Some programmers saw the potential of blockchain for developing other powerful networks besides Bitcoin like Ethereum and Blockstak.
Blockchain can be defined as an incorrupt way of conducting economic transactions that are programmed in such a way as to record not only financial transactions but also anything of value. Blockchain has enormous capabilities enabling totally secure transactions without any tampering. This smart contract makes sure that all concerned parties carry out the specified duties without any trusted middleman or third party. There is no disputing of claims, haggling or going back on the responsibilities of respective parties. In fact, information on blockchain is like a continuously reconciled database that is public and can be easily verified. Since it is hosted by an unlimited number of computers at the same time, the data can be accessed by all on the internet.
Blockchain is made up of the network of computing “nodes” that work like an administrator joining the network voluntarily. Nodes are supposed to be mining Bitcoins although it seems more of a miscalling.
Blockchain Technology is Robust & Durable
Blockchain technology just like the internet stores unlimited and identical information across its network. It cannot be controlled by a single person and also does not have a single point of failure. Since its inception in 2008 blockchain is functioning without any disruption.
Blockchain Technology if Transparent & Incorruptible
Blockchain network operates by constantly checking itself every ten minutes. The network coordinates every transaction at an interval of ten minutes just like a self-auditing ecosystem of digital value. Each group of transactions is known as a ‘block’. Due to this transparency, data is made public and embedded within the network. Moreover, the information on the blockchain cannot be altered or corrupted.
Blockchain & Security
Blockchain stores its data across its network but there is no risk that often comes with when data is held centrally. Since blockchain security methods use the encryption technology, data is secure lacking vulnerable centralized points that cannot be hacked by hackers.
Blockchain technology however revolutionary it may sound is a mechanism that proves to be the highest degree of accountability. There is no chance of machine or man-made errors, missed transactions or an exchange made without the consent of the involved parties. To top it all blockchain guarantees the transaction validity not only on paper but through a distributed system of registers that are connected by a secure validation method.