Tuesday, October 8, 2019

What is Blockchain technology? All you need to know

Recently, you may have noticed that many people use the term "blockchain" in conversations, especially regarding cryptocurrency transactions

Even if you own Bitcoin, you may not quite understand how its blockchain technology works. The only important thing in cryptocurrency transactions is liquidity, which is why the concept of safe and anonymous cryptocurrencies earns millions of followers every minute

However, the fact is that cryptocurrency is just a subset of blockchain. Its true potential has not yet been fully understood but it already causes shifts and earthquakes in every business. Although Portmanteau sounds ugly, Blockpreneur is today a real term and a respectable profession. Governments and companies want to monopolize and regulate blockchain technology so IoT companies can't wait for everyone to start using it

 What is Blockchain technology?

In its simplest form, blockchain technology is the online ledger for transactions that are stamped in a "peer-to-peer" network. blockchain uses encryption keys (called hashcash), decentralized servers, and immutable "blocks" that contain encrypted data to ensure the success of anonymous transactions. Each blocks is connected to its neighbors by chain and relays information that will be executed for a predetermined target.

Apart from cash transactions, blockchain is also used in social media game points, supply chain management in industries, electoral processes, and IoT status updates. The blockchain concept was invented by Japanese geek Satoshi Nakamoto in 2008 as a key component in Bitcoins which became the first and by far still the most successful example of blockchain application.

Satoshi invented the concept of blockchain to deal with the problem of "double spending" of changing digital cash. This is somewhat similar to charging your credit card twice and canceling the credit card company redundant transaction several hours after the transaction was settled. With the emergence of bitcoins, trust is automatically built into blockchain transactions because the data in the blocks cannot be changed.

 How does Blockchain work?
Anyone can create a blockchain, and in fact, their official website keeps an accurate update every minute of the blocks associated with a key chain.

 When you click a block, you get information such as the number of transactions that occurred (1588), size, transaction, time received, and fees. It looks somewhat similar to a bank electronics money transfer, but there is no information about the sender and recipient, as this information is hidden in the cryptographic hash key.

 Because blockchain processes settle transactions in real time and remain free to use, they are a pure genius concept that replaces money, a 5,000-year-old symbol of human civilization. Imagine a credit card station where the merchant does not charge you a fee. (It's becoming increasingly rare.) Now, imagine that no merchant is bothering you in the first place. This is the truth about blockchain: it cuts off the mediator's intervention from the image. With the Peer-to-Peer network, you can send money, information, goods, and receipts to other people. Along with this, all transaction components are recorded.

 Let's say you bought an e-book on the Bitcoin website. How does this process compare to treating Amazon using real money?

- There is no dealer to deal with on the Bitcoin website. You don't need any brokers like Visa, MasterCard or American Express.

- Funds are transferred directly to the recipient, but not without you can download the e-book simultaneously. There is no room for fraudulent transactions in blockchain. In a blockchain network, all transactions must be settled simultaneously which include payment, receipt, service goods and other intermediate exchanges.

Finally there are many current and future applications of blockchain technology. It is a real change to financial transactions in any online activity that can be considered a "transaction." Because of the great variety of applications it can generate, some people consider blockchain not only a new transactional world but an “alternative to the Internet itself

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