The popular discussion among
People recently is: What
is Blockchain? Is it favorable for businesses? Why is it getting
popular among businesses? Is there really anything revolutionary? So
let us start with its origin.
Its all started with the
innovation of bitcoin
– a digital currency experiment. Bitcoin & concept of its
Blockchain
were first introduced as a WhitePaper in 2008 & later released as
open-source software in 2009 as history’s first, permanent,
decentralized, the global ledger of records. The main goal of this
paper was to build a peer-to-peer version of digital currency in
order to enable people to spend it directly without going to a
financial institution.
Blockchain – a “distributed
ledger”
technology that runs Bitcoin or other cryptocurrencies – comprises
two parts – a Block – some timestamped digital records & a
Chain component which links them all together with a hash function.
Which means it is a chain of Blocks that are cryptographically linked
together. Whenever the new information arrives, the content of newly
added block got linked with each block before it. However, the
previous information, stored in blocks, cannot be edited, adjusted or
changed. Any change to the contents of a previous block would
invalidate the data in all blocks after it. Though it is constantly
checking itself, the data on it is immutable.
There are three
principal technologies which
are combined to create a Blockchain. These are –
1) Private key Cryptography,
2) a distributed network with
a shared ledger and
3) an incentive to service the
network's transactions, record-keeping and security.
It is well-known that the
Internet was created to freely move information online & this
information needed to be stored somewhere. As a result, everyone has
a zillion of databases on Earth where the huge amount of data is
created & stored every day. Blockchain does the same thing for
money. It made it possible to transfer money across the world by
eluding traditional middlemen like banks and even governments.
However, it breaks the database in million tiny pieces. The entire
process is retained on the large network of computers validated by a
wider community.
Some powerful benefits
of this technology:
-
Decentralization
-
Transparenblockchain app development companycy
-
Secured by Cryptography
-
Consensus-driven
Contemporarily, nobody can
deny the skyrocketing value of bitcoin & other cryptocurrencies.
However, many people have a misconception that Bitcoin &
Blockchain are same, even though they are not. Around 2014, People
started realizing that Blockchain is not limited to cryptocurrency.
They explore that how it can be utilized to alter many different
kinds of operations. Entrepreneurs understood the ultimate power of
this powerful technology & start utilizing it in supply
chains, healthcare, insurance, transportation, voting, contract
management and
more. So if you too want to leverage this ultimate technology, opt
for a reliable blockchain app development company such as Codebrahma.
