What Is Blockchain Technology |A Simple Guide
In today’s modern world a lot of new technologies have been entering our life. Blockchain is one such technology that has created a lot of impact on every business sector in order to ease business.
Probably you have been hearing a lot about blockchain technology but you aren’t aware of what exactly is blockchain technology?
Well!! You have landed on the right page, in this article you’ll get the complete information about blockchain technology that you have been looking for.
What Is Blockchain Technology
Blockchain is described as a chain of blocks which stores or contains data, it is managed by thousands of computers which can not be altered or copied once a data is recorded in a blockchain.
Moreover, the purpose of blockchain technology is to eliminate the middleman or central authority and also reduce the double entries of record.
Blockchain is one of the most promising and revolutionary technologies because it helps reduce risk, fraud, and brings transparency.
How Blockchain Works
Well!! Now you know what blockchain is, probably you are eager to know how blockchain works.
So, let’s proceed and understand how the blockchain works : when a block store new data is added to the block chain. As, it’s name suggests, it consists of multiple blocks strung together. However, there must be 4 things that must happen.
The information is stored in the block, each block is linked with the next block just like a structure of a chain that’s why it’s called a blockchain.
The blocks are organized by number. The numbers which are denoted to blocks are called Index.
Data is the implementation of a transaction. The data is stored, “from” the provider “to” the purchase all the information is stored in it.
The time is recorded in it of each and every transaction.
History Of Blockchain
Back In 1991 Stuart Haber and W. Scott Stornetta has worked on a cryptographic secured chain of blocks. Moreover, they intend to design a system where document timestamps could not be manipulated.
Later in 2008 a person or (group of people) satoshi Nakamoto introduced the blockchain to serve as the public transaction ledger of the cryptocurrency bitcoin. Moreover, the first bitcoin transaction is said to be done by Satoshi Nakamoto.
More importantly, Satoshi Nakamoto framed the design in such a way using a Hashcash-like method to add blocks to the chain without any trusted party signature. Blockchain was implemented as a core component of the cryptocurrency bitcoin.
Therefore, now the blockchain business has taken over the world by storm. Blockchain technology can be used as public means of transaction as well as private ledgers for intercompany transaction and record keeping. The data is meant to be resistant to modification and secure as a record of transaction.
Benefits Of Blockchain
There are plenty of benefits of blockchain technology. As it’s the advancement of the modern world. It helps out to work efficiently and effectively.
The blockchain is decentralized as there is no intermediate or third party involvement. It reduces the cost of intermediary and works efficiently.
Blockchain has the ability to quickly find out any problems and efficiently prevent, or rectify outbreaks. Transparency in terms of blockchain traceability can validate and authenticate the origin and improve brand credibility.
As Blockchain technology eliminates the use of central authority, the stored data in it can not be altered, using encryption enables the data to be more secure in the system.
Blockchain technology is transparent in which anyone can join the network. Moreover, every change in the blockchain network is viewable.
Ultimately, the World is moving into innovation and invention. Blockchain technology is a revolution of a new era. The blockchain is using for business purposes, it is one of the most promising technology to make work efficiently by reducing the cost. It doesn’t need an intermediate party for any transaction, it is decentralized which makes the work effective.
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