What is Blockchain

Posted on Posted in Blockchain

What is Blockchain?

A Blockchain is a decentralized ledger of all transactions in a
network. Using Blockchain technology, participants in the network
can confirm transactions without the need of third party. It is used
in powerful applications such as fund transfers, voting, and many
other applications.

Blockchain Technology involves a ledger of transactions that are maintained on a network of
servers called “nodes”. Each node maintains a ledger reflecting the ownership of assets. The
ledger is distributed and can be maintained simultaneously on all the nodes in the network. The
ledger contains a continuous and complete record of all transactions dating back to the
origination of the ledger. Validated transactions are added to the ledger in groups or blocks
using cryptographic methods to ensure the integrity of the transactions. It is this recording of transactions in blocks to the chain of transactions reflected in the ledger.

How does Blockchain works?

The Blockchain technology facilitates peer-to- peer transactions without any intermediary such
as a bank or a governing body. The Blockchain technology makes it possible to remove all
middlemen when transacting between two parties.

The Blockchain is essentially a database of all transactions happening in the network. The
database is public and therefore not owned by any one party. It is distributed that is not stored
on any one computer owned by somebody instead it is stored on many computers across the
world. The database is constantly synchronized to keep the transactions up to date and is
secured by the art of cryptography making it hacker proof. These features make this an
exceptional technology. Blockchain works as a network of computers all of which must approve
a transaction that has taken place before. It is recorded in a chain of computer code. After the
transaction is validated the details of the transfer are recorded on public ledger that anyone on
the network can see this transaction.

Future of Blockchain: -

  • Blockchain will be adopted by central banks and cryptographically secured currencies will become widely used.
  • Blockchain could replace central banks.
  • Blockchain have the potential to reduce cyber risks by offering identity authentication through a visible ledger
  • A new Blockchain startup has claimed its software could help track down criminals faster and cheaper than ever.
  • Blockchain technology will make the world even smaller as it increases the speed and efficiency of transactional activity.

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