This technology is considered an ingenious invention. The brainchild of a person or group of people which is referred to as Satoshi Nakamoto. But the original technology has evolved. Through the blockchain technology, it is possible to distribute information rather copying it. One of the reason why we are on the verge of a new type of internet, using blockchain technology. This is initially devised and used by Bitcoin, the digital currency.
Today the tech community has found many other potential uses for a blockchain. As such one can see a blockchain revolution unravelling these days that led to the bitcoin revolution as well. Bitcoin today is being referred to as digital gold. There is a good reason behind this, $112 billion US is the total value of the currency at the time of writing. Other digital value can also be made based on blockchains.
For example, few people use their car but they do not know how it works. Similarly one can use blockchain without knowing how it works. But if we understand this technology, then it is easy to understand why blockchain is a driver for a (r)evolution. In simple words, the blockchain can be understood as a digital ledger which is incorruptible and used for making transactions which can also be programmed for recording virtually everything which has value and not just financial transactions.
To understand blockchain, imagine a document which is duplicated and distributed across several computers in a network. The network here is designed in a way so that it updates that document regularly. If you can imagine this, the basics of a blockchain are achieved. The information present in the blockchain is always shared and reconciled continuously with the database. This method of using the network comes with a lot of advantages. The database of the blockchain is never stored in one single location. So, the records here are public and they are very easily verifiable. There is no concept of centralized information in the blockchain. It is therefore not easy for a attacker/hacker to corrupt it or even trying to. Since it is hosted using millions of computers it is possible to access the data by anyone who is using the internet.
De blockchain is gedecentraliseerd, wat betekent dat de informatie niet op één centrale server wordt opgeslagen, maar exact wordt gerepliceerd op alle computers die deelnemen aan deze blockchain. Deze technologie is gebaseerd op peer-to-peer (P2P) centrales en alle databases moeten identiek zijn om geldig te zijn.
Omdat de transparantie van de blockchain-informatie totaal is, is het mogelijk om de geschiedenis van alle wijzigingen die in de database zijn aangebracht te volgen sinds het is gemaakt. Het is eenvoudig te begrijpen dat als een of meer computers, ook wel knooppunten van het netwerk genoemd, verschillende gegevens, zal de meerderheid van de servers nog steeds de referentiestandaard zijn voor de validatie van transacties, vandaar de afwezigheid van een centraal controleorgaan of vertrouwde derde partij.
Zoals we hierboven uitlegde, moet elke wijziging in de database worden goedgekeurd en geverifieerd door de meeste netwerkknooppunten. Dit systeem is daarom erg veilig, omdat om het te corrumperen, het nodig zou zijn om gelijktijdig meer dan 51% van de deelnemende gerepliceerde databases aan te vallen.
There are many advantages of blockchain technology. We listed some:
In the blockchain technology, it is possible for users to make transactions and verify them later without the involvement of a thirty-party. This avoids backdoor transactions and hence the reduction of associated risks. There will not be any interference of unauthorized third-parties. Even though the environment is completely distributed, it is not easy to mess with the data on the network. There is less chance for data tampering, since blockchain can create a robust system, there is less chance for data tampering.
This ledger technology allows reviewing of every information as well as each and every transaction made by users. Once the user makes a transaction and gets validated, the data in the blockchain will be accurate, consistent, and complete. Each and every member has the right to make transactions in public and is a great example of why this is a great transparent system. Since those transactions can be seen in one public ledger there is no complication of maintaining multiple private ledgers.
Blockchain offers reduced transaction time as transaction are being processed 24/7. Just a few minutes are required for a transaction to complete. This is very fast compared to the interbank transactions which take days to complete. Hence businesses are saving a lot of money through the automation process. There is an opportunity given by blockchain to radically transform the way things are done by offering a standard architecture which addresses organizational and business problems.