Blockchain was introduced into our collective conscience through the popularity of Bitcoin back in 2009. Through Bitcoin, came a completely new ledger system with attractive features. We were all confronted with the first-ever distributed ledger technology. Ever since then, many other cryptocurrencies alongside Bitcoin came into being, and there have been various new scopes of DLT that emerged. What is common is that all of this is based on Blockchain technology.
Some quick facts about Blockchain Technology
- Satoshi Nakamoto, the founder(s) created Blockchain in 2008.
- It was used by Bitcoin as its record-keeping mechanism.
- Nowadays Blockchain is used in various sectors starting from education to governance.
- Blockchain Technology is practically not alterable, which means it offers better security.
How does Blockchain work?
It is a peer-to-peer network, in the form of a niche of computers all connected to one another. So, there will always be users who will be able to verify and confirm a transaction or a data entry. But let’s be more specific.
A small pocket of 1MB storage constitutes a block. Data is stored in these blocks and once one block is full, it gets packed and connected to the next open block, which then gets ready to store new information. These blocks form a connection of a long chain, called the Blockchain. All uses of Blockchain are dependent on this basic system.
The main features of Blockchain Technology:
1. Decentralized
There is no interference of any central agency in blockchain technology. Several nodes look after the network together, offering direct control through just a unique private key. This also leads to a transparent environment, but with the perks of anonymity.
2. Immutable
Distributed ledger technology packs the data in a manner that it remains practically immune to any change or alteration. However, some nodes can act as verifiers and keep a watch on the network but still cannot tamper with data once it is blocked.
3. Highly secured
Blockchain is backed by cryptography. This ensures another layer of security as crypto is a complicated mathematical algorithm, pretty difficult to crack. Every transaction has a unique identification number and can be only accessed through private keys.
4. Quick settlements
Unlike traditional banks, transactions occur through Blockchain at lightning speed. Settlements in money transfers are fast and accurate. Naturally, both time and high transaction fees are saved, resulting in a better experience for the customers.
5. More capacity
Last but not the least, the capacity of Blockchain networks to store data is really impressive. Small electronic ledgers allow only a few nodes to participate in the network, but Blockchain can accommodate many computers at a time in a consensual manner.
Blockchain for Cryptocurrency
Blockchain Technology is the skeleton on which every cryptocurrency is devised. It works as an information recorder for maintaining the public ledger involving a particular cryptocurrency. All the features of Blockchain are minutely incorporated in the working of cryptocurrencies.
Throughout the history of Blockchain, people have tried to innovate the idea, introduce it to new aspects of the market. Based on the same technology, many online cryptocurrency trading softwares welcome you to the world of Blockchain. You can trade your coins there and earn returns. Through the crypto market is rather a bit volatile, trends show that in the bigger picture, returns are always on a rise. You can always try your luck with a small investment in cryptosoft app or other similar applications.
Conclusion
Though people were a bit unsure about Blockchain technology initially, as all the previous systems are tested and working, we have slowly welcomed it into the various areas of both our work and everyday life. There are several interesting features of blockchain technology, which actually will turn out to be beneficial in the long run, as the entire world is slowly upping the technological game. Only time can tell whether Blockchain technology with all of its features can run smoothly and persist in the competitive market in today’s world.
