I am not going to give you a technical definition for Blockchain Technology. Because, that’s what you would have found all over the internet. I am going to explain it to you in a simplest way possible.
“Blockchain” as the name suggests that it’s a chain of blocks. Therefore, to understand Blockchain first you have to understand what do they mean by a block.
To understand what a block is, please consider the following diagram.
- It will allow smart devices to speak to each other better and faster.
- Blockchain mechanism brings everyone to the highest degree of accountability. Therefore, solves the problem of manipulation.
- The data that belongs to us we can own it that is online identity and reputation will be decentralised.
- Cryptocurrencies will take the power from the government to control the value of currencies and hand it to people.
- It will allow middleman-free way to exchange asset.
- It will allow the removal of intermediaries that are involved in record keeping and transfer of assets.
- It provides durability, reliability, and longevity with decentralised network.
- The data that are entered in blockchain based systems are immutable which prevent against fraud through manipulating transactions and the history of data. Therefore, all the transactions can be investigated and audited easily.
“Blockchain” as the name suggests that it’s a chain of blocks. Therefore, to understand Blockchain first you have to understand what do they mean by a block.
To understand what a block is, please consider the following diagram.
What is Blockchain Technology?
Blockchain technology allows consumers and suppliers to connect directly, removing the need for a third party. It provides a decentralised database or digital ledger of transactions that everyone on the network can see. Or we can say it is a simple way of transaction. Let us study through this article about blockchain technology, where it is used, who invented blockchain technology, what are its advantages and disadvantages, is it safe to use etc.
HOW BLOCKCHAIN WORKS -
- It will allow smart devices to speak to each other better and faster.
- Blockchain mechanism brings everyone to the highest degree of accountability. Therefore, solves the problem of manipulation.
- The data that belongs to us we can own it that is online identity and reputation will be decentralised.
- Cryptocurrencies will take the power from the government to control the value of currencies and hand it to people.
- It will allow middleman-free way to exchange asset.
- It will allow the removal of intermediaries that are involved in record keeping and transfer of assets.
- It provides durability, reliability, and longevity with decentralised network.
- The data that are entered in blockchain based systems are immutable which prevent against fraud through manipulating transactions and the history of data. Therefore, all the transactions can be investigated and audited easily.
Do you know who invented Blockchain Technology?
In 2008, Blockchain Technology was invented by Satoshi Nakamoto for use in the cryptocurrency bitcoin, as its public transaction ledger. He aims at creating the decentralized Bitcoin ledger and on the other hand the blockchain was to allow users to control their own money so that no third party, not even the government, would be able to access or monitor it.
Blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted central authority or central server.
Blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted central authority or central server.
Why Blockchain technology is required?
The blockchain technology is a method that brings everyone to the highest degree of accountability. With the help of this technology no more transactions will be missed, human or machine errors will be minimised etc. Even nowadays major banks are experimenting this technology as they can use it for money transfers, record keeping and other backend functions. As an un-alterable ledger in real time it enables them to track documentation and authenticate ownership of assets digitally. Also, Indian IT service providers like Infosys and TCS companies are using this technology to create core banking platforms for banks.
IS BLOCKCHAIN SAFE TO USE :-
Hope from the above discussion, it is clear that no doubt blockchain architecture can significantly bring down the costs and reduce inefficiencies in the financial sector. As, it allows two parties to execute a transaction without any intermediary. Without any human intervention blockchain allows financial institutions to execute and verify transactions discretely. And transactions are continuously maintained and verified in ‘blocks’ of records.
What is WWW ?
Advantages and disadvantages of WWW ?
What is difference between lifi and wifi?
The blockchain technology is a method that brings everyone to the highest degree of accountability. With the help of this technology no more transactions will be missed, human or machine errors will be minimised etc. Even nowadays major banks are experimenting this technology as they can use it for money transfers, record keeping and other backend functions. As an un-alterable ledger in real time it enables them to track documentation and authenticate ownership of assets digitally. Also, Indian IT service providers like Infosys and TCS companies are using this technology to create core banking platforms for banks.
IS BLOCKCHAIN SAFE TO USE :-
Hope from the above discussion, it is clear that no doubt blockchain architecture can significantly bring down the costs and reduce inefficiencies in the financial sector. As, it allows two parties to execute a transaction without any intermediary. Without any human intervention blockchain allows financial institutions to execute and verify transactions discretely. And transactions are continuously maintained and verified in ‘blocks’ of records.
What is WWW ?
Advantages and disadvantages of WWW ?
What is difference between lifi and wifi?
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