You can think of blockchain as a technology that is used to record information or data, in a way that is impossible to hack or change. This technology makes the system and the information secure enough to trust on.
Blockchain technology is a distributed database over a network that treats data as blocks. It stores the transactional records as blocks, in different databases just like forming a “chain”. Typically it all works on the peer-to-peer topology. So in short, blockchain is a digital record of the transactions.
What’s the need for the blockchain technology?
If we look a few years back, we see there were many attempts to create a digital currency but it all went down because of trust issues. For example, if someone creates a currency and owns it, how can he be honest with it?
Bitcoin solved the problem and sealed the deal. Bitcoin made use of a special kind of database called a blockchain. The other databases like SQL etc are different from the blockchain as someone is an administrator or is in charge who can make changes to the database. Blockchain is different as no one can make changes all alone. No one is in charge here. Blockchain is handled by the all people who use it. All the transactions are secure and recorded. No one can manipulate the results or data.
How blockchain works?
Just simply focus on the word blockchain. As I mentioned earlier it’s a database, so visualize the data as blocks on different locations and devices, forming a chain in the end. That’s right! The blockchain is not a centralized database, but it works in a distributed way. Rather than storing all information in a central location, the whole blockchain is copied and is spread all over the network. If any of the computers updates the data, the whole change is reflected in the network. This makes it extremely difficult for anyone to hack, gain control or manipulate the data and disrupt the network.
If I refer to the big applications of blockchain technology, Bitcoin and Spotify are top on the list.
Future of blockchain:
Blockchain technology is an emerging one. There is uncertainty regarding its future as all cryptocurrencies make use of it. This distributed ledger technology act as a decentralized system to record digital transactions of digital currency.
Although cryptocurrencies are on a rise, and experts refer to them as the future of the currency and the value. Another area of growth for blockchain technology is cybersecurity. As the businesses are facing and will face ever-growing data-hacking threats. So hence this technology could be the upcoming giant. So what will be your contribution to this technology?