Blockchain may be a trend you’ve heard of. Although many people aren’t familiar with the concept, it is not a bad idea. This is because this idea isn’t that new. It’s actually been around for years. So what’s it all about anyway?
The main goal of Blockchain technology is to implement distributed ledger technologies (DLT). What does this mean? It simply refers to the latest financial transaction and recording technology that use peer-to-peer technology to allow for real time transactions and calculations. Although it originated on the Internet, the concept has spread to other areas, such as finance, software, and real estate.
As explained by Vitalik Buterin, one of the founders of the Blockchain project, this is basically a new digital ledger that works like the original internet but is less fragile than the webbed Internet. The distributed ledger stores transactions. This ensures everyone involved in the transaction has their updates at all time and that they are not altered by anyone. Transactions are safe and can’t be reversed, hence the need for the distributed ledger.
The Blockchain includes smart contracts. These are a type of virtual machine or computer program that can be programmed for certain tasks. The ICO platform makes it possible for users to create smart agreements that can perform the function of settlement management, collateral exchange, or other transactions. Blockchains act as a kind of virtual machine or computer software that facilitates currency and other monetary exchanges. The concept isn’t limited to currencies. Financial instruments like bonds, stocks and commodities are also being transferred and recorded using the Blockchain technology.
An individual or organization’s personal information and data cannot be accessed without their consent. This is the very essence privacy and an essential feature the Blockchain technology. Blockchain transactions are encrypted. The identity of the transactional user can be hidden. The transactions are almost risk-free and safe from unauthorized access.
Unlike the public ledgers, the Blockchain does not rely on any third party for the transactions. The Blockchain is completely secure and does not allow for unintended transactions. However, hackers can access the public ledgers and they could be used to steal your financial data. Blockchain transactions are transparent and managed by a network that is susceptible to malware attacks. Hence the chances of hacking and phishing are very much reduced and if your digital ledger is hosted by a renowned institution, then you can be rest assured that your data is absolutely safe and secure.
The popularity of Blockchain has skyrocketed in recent years as more people realize its potential and reap the immense benefits it provides to everyone. Many financial institutions are using the blockchain technology for their internal purposes. Financial institutions such banks, hedge funds or asset managers, as well as other financial institutions, are integrating the Blockchain technology into their systems. Some well-known corporations like PayPal, MasterCard and Visa have already adopted the Cryptocurrency concept to their internal use. As more people become aware of the benefits of Blockchain technology and the necessity for it, it is evident that Blockchain use is growing.
Experts from the fields of Computer Science and Math are slowly adopting the concept. Many renowned universities are investigating the implications of public blockchain technology to their academic purposes. Developers are creating prototypes for the next generation cryptocurrencies, like the Maidsafe (and Counterpart) due to growing demand. The future looks bright as more people join the concept and competition grows between different cryptospace participants.
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