Blockchain may be a trend you’ve heard of. Although many people aren’t familiar with the concept, it is not a bad idea. The idea isn’t new. It has been around since 2021. What’s the deal?
The main purpose of the Blockchain concept refers to the implementation of distributed ledger tech (DLT). What does this actually 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 records transactions. This ensures that all parties to the transaction have the latest information at all times, and that no one can alter them. Transactions are safe and can’t be reversed, hence the need for the distributed ledger.
The Blockchain does not only include ledger transactions. It also includes smart contract, which is a kind of virtual machine or program that can perform certain tasks. The ICO platform allows users to create smart contract functions such as collateral exchange, settlement management, and other transactions. Hence the Blockchains use a sort of a virtual machine or computer program to facilitate the transfer of currencies and other monetary values. This concept is not restricted to currencies. Financial instruments like bonds, stocks and commodities are also being transferred and recorded using the Blockchain technology.
Without the consent of an individual or organization, access to their personal information and data is not possible. This is the very essence and essential feature of Blockchain technology. Transactions on the Blockchain are encrypted and the identity of the transactional user is masked. Hence the transactions run virtually risk free and are safe from any unauthorized access.
The Blockchain is not like the public ledgers. It does not rely upon any third party to process transactions. There is no risk of theft or unintentional transactions. The public ledgers however are vulnerable to hackers, and it is possible for someone to tap your financial data. Blockchain transactions are transparent. They can be managed by a community of users, who could be infected by malware that targets public ledgers. Therefore, hacking and Phishing are less likely. Additionally, if your digital account is hosted by a trusted institution, you can rest easy knowing that your data and transactions are secure and safe.
The popularity of the Blockchain has tremendously increased in recent times as more people realize its potentiality and the immense benefits it offers to every individual. Many financial institutions are now using the technology for their internal applications. Financial institutions, such as banks, hedge funds, asset mangers, and other financial institutions, are using Blockchain technology for their internal applications and successfully integrating it into the systems. Many well-known businesses, including PayPal, MasterCard, Visa and MasterCard, are already using Cryptocurrency internally. It is clear that Blockchain usage is growing as more people realize its benefits and the need for it.
Experts in Computer Science and Math are gradually accepting the concept. Numerous renowned universities have begun to research the implications and potential uses of the public blockchain technology. The developers are currently developing prototypes for future cryptocurrencies such as the Maidsafe, Counterpart and Counterpart in response to increasing demand. As more people participate in the concept, and as the competition between cryptospace participants grows stronger, the future looks bright.
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