Breaking the Chains of Conventional Banking – Blockchain Technology
Blockchain technology has been the buzzword for quite some time now. The growing popularity and market value of bitcoins have sparked the rise of blockchain technology. Bitcoin is a digital currency that facilitates peer-to-peer transactions without the help of a third party. It can be said that blockchain is to bitcoins what internet is to […]
Blockchain technology has been the buzzword for quite some time now. The growing popularity and market value of bitcoins have sparked the rise of blockchain technology. Bitcoin is a digital currency that facilitates peer-to-peer transactions without the help of a third party. It can be said that blockchain is to bitcoins what internet is to e-mail. Blockchain technology is the engine on which bitcoins function
What is Blockchain Technology?
A blockchain refers to an anonymous online ledger that simplifies the way we transact by using specific data structures. The blockchain’s ledger is different from that of a bank. A bank’s ledger is connected to a centralized network, but in the former, the ledger is anonymous, which protects the user’s identities. With the help of this technology, the users can also manipulate the ledger securely without the help of any third party. As mentioned earlier, blockchain is a distributed ledger that continuously keeps the digital records updated regarding who owns what. In the case of blockchain technology, there is a network of replicated databases that are synchronized through the internet and are visible to anyone within the network. These networks are similar to the intranet, which is private with restricted membership and accessibility from across the globe
Application of Blockchain
Did you know that blockchain technology goes way beyond just digital currencies and money transfers? They can be employed in various other functionalities such as smart contracts, maintaining digitally recorded assets/properties, electronic voting, and maintaining patient health records. An example of blockchain’s application in the recent past is Nasdaq unveiled Linq, which is a solution enabling private companies to represent their share ownership digitally. Blockchain technology will soon disrupt many industries that rely on intermediaries, including sectors such as healthcare, banking and finance, real estate, insurance, etc.
The Safety Aspects
Safety is the most important concern in the usage of any digital technology. With widespread hacking and malware that are hindering the smooth flow of digital processes, safety and security of information and resources are the major deciding factors for users looking to resort to a particular mode of transaction. Bitcoins are considered a safe medium of transaction considering the complex network and the anonymity involved. The blockchain technology is based on superior algorithms that make it highly immune to hacking. It requires considerable computing powers to hack into a blockchain network, and as of now, it looks like a long way before hackers can set traps on the blockchain battlefield.