Anyone who keeps tabs on the latest developments in the tech sphere surely must have heard of the term Blockchain. Actually, people who are not tech freaks as such are still aware of this unique creation made by some geniuses with the purpose of enforcing safe financial transactions.
It is understandable for people who are not big fans of technology to dismiss this ingenious technology as a fad, a mere buzzword or just a technical jargon. But, whether you believe it or not, Blockchain is one of the best inventions since the third industrial revolution. It has far-reaching implications and doesn’t only hold the potential to reform the financial realm, but a multitude of industries which are just waiting to toss out traditional frameworks and are yearning to see business from a fresh perspective.
For those who do not have much of an idea about Blockchain or the ones who are interested in establishing themselves as Blockchain Professionals and need an insight into this industry, this article is a must-read since it is going to reveal some important facts about this technological marvel and how it is making its way into a myriad of businesses.
Blockchain - Explanation
Blockchain can be described as a distributed ledger. By that I mean to say that the devices that store data are not linked to a single, common processor. It is a chain of blocks or records. And, every block includes a timestamp along with a cryptographic hash linking it to the previous block.
The users are only allowed to edit those parts which belong to them with the help of a private key which is owned by each and every member of the network. The characteristic that makes Blockchain eccentric is its secure and decentralized design.
The world came face to face with this concept in 2009 when Satoshi Nakamoto introduced Bitcoin, the famous digital currency, and Blockchain was its underlying technology. In other words, it acted as a public ledger for Bitcoin transactions. The reason why this decentralized ledger made a good first impression was that it removed the issue of double spending which was a common menace in the area of digital currencies since electronic files can be copied, unlike physical token or coins.
What infuses unparalleled security into the system is the distributed timestamping server along with the peer-to-peer network. Which makes it a perfect a database for recording crucial events like medical records, financial transactions, identity information.
Blockchain Technology – The functionality
Some people have rightly said that Blockchain is like the ‘Internet of Value’. IT is an excellent metaphor to describe how Blochain function.
We all know how the internet enables us to publish information that can be accessed by others from anywhere on the planet. Now, same is the case with Blockchain since it can transfer virtually anything that has value. It lets you send value anyone basic condition that you must own a cryptographically created private key.
On that account, businesses are going bonkers over this one-in-a-million technology that is a gift from the exceptional minds of the tech world. Every industry is making space for Blockchain Technology to establish itself and bring positive alterations to the existing, conventional systems. Hence, there is a huge scope for Blockchain professionals who can offer their expertise to make this evolution smoother.
Core Feature of the Blockchain Technology – Making it an Important Invention
These days, we share information by using a decentralized platform which we call – The Internet. However, when we are in need of transferring something of value like money and ownership right, we rely on orthodox centralized institutions, such as banks. Though now, there are a bunch of online payment methods, they still expect us to connect with our bank accounts, debits cards or credit cards.
But, Blockchain has been specially created to eliminate the middlemen from the picture. It does that by undertaking three essential roles:
• Recording Transactions
• Establishing Identity
• Establishing contracts
Basically, these are the functions that are carried out by the financial sector in the present, but with Blockchain coming into the scenery, some major changes are on their way to disrupting the customary financial setup.