Blockchain may be a trend you’ve heard of. Although many people aren’t familiar with the concept, it is not a bad idea. This is because the idea of this is not new. It has been around since 2021. So what’s it all about anyway?
The main goal of Blockchain technology is to implement distributed ledger technologies (DLT). What does this actually mean? It simply refers a new financial transaction and recording system that uses peer to peer technology to allow real time transactions and calculations. Although the idea was originally developed on the Internet it has since expanded to finance, software development, real estate, and other areas.
Vitalik Buterin was one of the Blockchain founders. It is basically a new digital blockchain that functions just like the original web but is less fragile and secure than the webbed Internet. The distributed ledger stores transactions. This ensures everyone involved in the transaction has their updates at all time and that they are not altered by anyone. The distributed ledger ensures that transactions are secure and cannot reversed.
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. For instance, theICO platform allows its users to create smart contracts that perform the function of collateral exchange, settlement management and other such 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. Blockchain technology is also used to transfer and store financial instruments like stocks, bonds, or commodities.
Without consent, an individual or organization’s personal data and data cannot accessed. This is the very essence privacy and an essential feature the Blockchain technology. Blockchain transactions are encrypted. Transactional users’ identities are hidden. Transactions on the Blockchain are virtually safe and secure from unauthorized access.
Unlike the public ledgers, the Blockchain does not rely on any third party for the transactions. The Blockchain is completely secure and does not allow for unintended transactions. The public ledgers, however, are vulnerable to hackers and can be tapped by anyone with your financial information. Blockchain transactions are transparent and managed by a network that is susceptible to malware attacks. This means that hacking and phishing is very unlikely. If your digital ledger is hosted at a well-respected institution, you can rest assured that your data will be safe and secure.
As people begin to realize the immense benefits of Blockchain technology and its potential, the popularity has increased exponentially. Many financial institutions have adopted the technology to improve their internal processes. Financial institutions such as banks and hedge funds, asset managers, and other financial institutions are using Blockchain technology internally and successfully integrating this technology into their systems. The Cryptocurrency is being used internally by many well-known companies such as PayPal, MasterCard and Visa. As more people realize the benefits of Blockchain and the need to use it, it is becoming more popular.
Experts in Computer Science and Math are slowly embracing the idea of the cryptocurency. Many renowned universities are also researching the implications of public blockchain technology for academic purposes. Developers are creating prototypes for the next generation cryptocurrencies, like the Maidsafe (and Counterpart) due to growing demand. The future is bright, as more people get involved with the concept and the competition grows stronger among different cryptospace participants.
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