In this post, I will show you what is blockchain technology.
In fact, it’s the innovative database technology that’s at the heart of nearly all cryptocurrencies.
It’s also a potential to serve a very wide range of applications.
Let’s drive in.
What is blockchain
Blockchain is a data storage system that records information of any kind. It can store cryptocurrency transactions, NFT ownership or DeFi smart contracts in its decentralized ledger-like way.
Blockchain is a decentralized database. It’s not one computer in charge of it, but many computers on the network that are all working together to keep records up-to-date and accurate.
Bitcoin or Ethereum work on their blockchain system.
How blockchain works
Blockchain is a revolutionary technology which allows data transferral in an extremely secure way thanks to its complex encryption system.
It’s so complicated that it would take the average person thousands of years to hack into one node without any assistance from anyone on earth!
The blockchain is a cryptographic technology that decentralises the processing of transactions – Here's a nice representation of how it works. Infographic @pauldughi1 @antgrasso rt @lindagrass0 #Blockchain #Tech #DigitalTransformation pic.twitter.com/k4DoRZx8ef— CEO Tech Awareness (@CeoAwareness) June 13, 2021
Blockchain is a technology that allows the transmission of data securely thanks to its extremely complex encryption system.
The blockchain system consists of many independent nodes capable of validating information.
In the case of cryptocurrencies, the blockchain acts as a ledger that records all transactions.
Transactions on the blockchain do not go through a third party to receive or confirm information.
This information cannot be deleted or edited, but only allowed to be added with the consensus of all nodes in the system.
Even if part of the blockchain system falls, other computers and nodes will continue to work to protect the information.
How Is Blockchain Used?
With the advantages of information security and safety on the network, blockchain technology opens a potential application trend for many fields such as finance and banking, retail, freight, manufacturing, etc. telecommunications..etc
With specific fields, in the business network of enterprises, there are many suppliers participating.
The blockchain system will store the information of all participating blockchains, and clearly identify the contributions of the participating parties.
As we now know, blocks on Bitcoin’s blockchain store data about monetary transactions. But it turns out that blockchain is actually a reliable way of storing data about other types of transactions, as well.
Some companies that have already incorporated blockchain include Walmart, Pfizer, AIG, Siemens, Unilever, and a host of others. For example, IBM has created its Food Trust blockchain1 to trace the journey that food products take to get to its locations.Source: Investopedia
Banking and cryptocurrencies
Although many people are mistaken when referring to Blockchain as Bitcoin, in reality, Bitcoin is only the first application that runs on the Blockchain system.
Blockchain is predicted as the future of securities trading.
In a world where everything and anything will be available to purchase with cryptocurrency, blockchain offers an alternative: executing transactions through fiat currency like dollars or euros without needing third-party validation from banks or other financial institutions.
Transactions are verified more quickly on the blockchain than traditional methods for transferring money because they can take place outside normal business hours when most organizations don’t operate anyway.
Supply Chain Monitoring
With blockchain, it’s easier to monitor a supply chain.
When goods cross continents and oceans in order for them to reach the end consumer, there can be many opportunities for difficulties or mistakes along the way that are difficult to track down without any information about who was at fault.
With this new technology, you could trace back every step of your product from source material all the way through manufacturing process up until delivery.
For example, when goods are transferred from US customs to China customs, when the goods arrive, all members of the blockchain network can track the status of the goods and know the specific arrival time.
Blockchain could be used to record and transfer the ownership of real-life assets like cars, houses, or gold.
This decentralized system is a great way for people in different countries around the world to have access rights that are more fair than traditional systems can provide.
This is currently very popular with digital assets like NFTs, a representation of ownership of digital art and videos.
Blockchain voting potentially eliminates the possibility of tampering with votes in an election.
A system such as this would allow voters to submit their choices and have them processed without anyone being able to alter or modify these selections.
Additionally, blockchain technology could help make elections more accurate by eliminating human error that often occurs when people manually collect paper ballots for verification purposes.
Although there are still many barriers such as government regulation, cybercrime, energy consumption…but blockchain is still something of a niche technology.
It’s hard to predict where blockchain technology will be in the future, but like the internet, it will dramatically transform the way we transact and interact with each other in the future.
Are you in favor of blockchain technology? What are your thoughts on blockchain technology, and cryptocurrencies?
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