What is blockchain and how does it work?
Most of us have surely heard a lot about the latest technology known as blockchain technology that is making a remarkable buzz today. It is a kind of technology advancement that possesses wide-reaching implications, which won’t just change the economic offerings but a lot of other businesses and industries as well. It is a distributed data base; the storage devices of data are not all connected to only one processor. It stores growing list of records referred to as blocks. Every single block has a timestamp and a hyperlink of the prior blocks.
Cryptography process guarantees that users can only modify the portions of the owned blockchain. This can be done through possession of private keys which are essential on creating records. Furthermore, it assures all blocks are securely stored.
Design wise, Blockchains are risk-free databases. The concept was unveiled around 2008 by Satoshi Nakamoto. It was initially applied in year 2009 on Bitcoin to serve as the public ledger for all its transactions. By utilizing blockchain technology, Bitcoin was able to fix the double spending issue with no help from any central servers or authorizations.
Securities are placed into blockchain systems by P2P network and by the timestamp server. It resulted to a database that is autonomously managed in a truly decentralized manner. This is what causes blockchains to excellently record information including transaction details, identification management and sources verification. This is really vital since it offers huge potentials for the benefit of the mass.
How does blockchain technology works?
A lot of people identified blockchain technology as the current internet of value, meaning values can be quickly exchanged just like the way information are delivered. We all know that data can move globally in an instant but transfer of payments and monies from one place to another is costly, slow and unsecured. Blockchain technology focuses not only on money but also to other kinds of assets such as votes, stocks, Artificial Intelligence, securities, scientific discovery, intellectual properties and a lot more.
Over the internet, any individual can release data and then others can gain access to it from any location. Blockchain technology enables everybody to deliver value from all locations where files can be obtained. Users should have private, cryptographically built key to get only the blocks that they own.
If users give their private key to anyone else, they efficiently transfer the stored value inside that particular blockchain section. The keys are primarily used in accessing address that contains currency units with financial values. This process fills the roles of tracking the transfer records which is originally done by physical banks. It is used also in creating identities and reliance. There is no one that can modify blocks unless you have the matching keys.
Edits that have no key verifications are automatically denied. Yes, keys can be hypothetically stolen but few computer codes can be saved securely at a little expense. Therefore, the main roles executed by actual banks including identity verification for fraud prevention and authentic transaction records can be done by blockchain technology in a more accurate and faster way.
The Significance of Blockchain Technology Today
The Blockchain technology applications are visibly seen worldwide. It can actually be used in different implications which I believe, are really useful for improving human lives. It can touch almost all divisions or areas of the current world’s industry and market. These advancements have successfully reached sectors such as finance, business, manufacturing, securities, medicines, review system, banks, Government agencies or system, electoral process, and etc.
Most of the people nowadays are used to transferring of data via online platforms commonly known as internet. However, in sharing of assets value, we have no choice but to use financial institutions like of banks. Those establishments usually ask for high fees but offers low securities. This way it will fill the first benefit of blockchain technology. It eliminates the need for middle party. Instead of banking sectors, it will keep transactions, establish identities and produce contracts needed in every deal.
Finance is obviously the largest sector of industry today. If all system connected to finance are incorporated with blockchain, there will be a massive surge in terms of effectiveness and efficiency. It can change the whole system processes. To be more specific, we can now also observe blockchain technology in banking aspects. If completely adopted, it can helps bank institution to process transactions more rapidly and more precisely while decreasing the processing expenses and the prerequisite for exclusions. But, to take advantage of this potential, bank needs to form the structure required on creating and operating real universal network using solution centered on this advanced technology.
Who owns blockchain technology?
Generally speaking, there is no one that owns it; although some blockchains are possessed by various organizations. There are actually huge dissimilarities between blockchain technology and blockchain alone. The concept under the blockchain operation is the blockchain technology which is the principle leading its operations. Although it is normally associated with Satoshi, if we look beyond historical data, Blockchain is actually older than the growth of the Bitcoin currency. It was year 1991 when W. Scott Stornetta and Stuart Haber showed the initial work in a cryptographically protected blockchains. After that year, they integrated Merkle trees in to the design enhancing its effectiveness. It enabled different collected documents into blocks.
For me, the person or organization who truly owns blockchain is not an issue since it is merely a kind of protocol. It can be used in different purposes which I believed is what matter the most. Everyone can have plenty of blockchain apps but not the technology itself. As long as we used it in proper and useful way, it will stay and will benefit the whole world. The future generations can surely use it as well. People can still discover a lot more about this technology and can develop more usages or implications in the future. Its benefits are boundless and limitless; let us leave it that way.