By now you must have heard about the word Blockchain for like the ten-thousand times. But do you know what it is?
Let’s find out the details of the blockchain technology in this post.
What is Blockchain Technology?
To define it in simple terms, a blockchain is an expanding list of records, called blocks. These blocks are connected using cryptography. It is an open, distributed ledger where transactions between two parties are recorded permanently.
Blockchain can be edited. But you can edit the parts only that are owned by you. You need to have the private keys to complete the editing process. The use of cryptography ensures that everyone’s file on the blockchain is at sync.
The concept of blockchain was introduced to us by Satoshi Nakamoto in 2008. It was first implemented in 2009 for bitcoin, a digital currency. Since then the concept has grown in popularity. However, it still has a long way to go, before it is absorbed by normal people in their lives.
Benefits of Blockchain Technology
There is a reason why blockchain technology was a hit. It’s because of the benefits it offers. There are endless benefits associated with the use of blockchain technology.
The main benefits include:
1. Transparency
When it comes to currency and transactions, transparency has great importance. To make the technology more transparent to people, they have introduced more new rules and regulations into the blockchain ecosystem.
Blockchain is a decentralised system and that is the best thing about it. It allows organisations to opt for a decentralised network and ditch the need for a centralised authority. This helps in enhancing the transparency of the entire system.
2. Affordable
As you may already know businesses spend a lot of money to improve the state of their current system. This is why they are always looking for an option that can cut down on their expenses.
With the use of blockchain technology, the company can reduce its costs related to third-party vendors to a great extent. Since blockchain is a decentralised platform, you don’t have to pay any fees to nay vendor. Also, there is less interaction involved in validating a transaction.
3. Increased Security
Another very important benefit of using the blockchain technology is that it utilises an advanced security system in comparison to other platforms out there. Every transaction carried on the platform is encrypted and also has a link to the previous transaction.
The security level is set higher with the help of nodes that are used to store a copy of all the transactions ever occurred on the network. This will protect your stored transaction data from being altered by any malicious attack.
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Blockchain technology is by far one of the best things invented by humankind. It has helped improve the process of online transactions and also made it more secure. But it still has a long way to go.
