April 19th, 2018
The blockchain is undoubtedly an ingenious invention that continues to make news everywhere. This Blockchain technology is the brainchild of a group of people or persons known by the pseudonym, Satoshi Nakamoto. As this technology is getting more attention everyday from millions around the world, the question being asked by many is: What is Blockchain?
The new blockchain technology is the backbone of a new type of internet database which is going revolutionize the world. Originally, this concept was devised for Bitcoins, but now different tech companies around the world are finding it to be beneficial for use in many different fields. Bitcoin has been called digital gold and rightly so, as its value increased by 2000% in just the last few years. The new blockchain technology can make different types of digital currencies. Like the internet, this new technology can be used in various fields and many researchers around the world already have started to work on its future uses.
As this technology is making news everywhere, it is important to know how this technology works, then you will understand why it is considered revolutionary.
Blockchain technology is an incorruptible digital ledger that can be programmed to record all transactions or values efficiently. Though it was originally invented to record financial transactions, recent studies have found that it can record virtually any value.
To understand this concept, visualize a spreadsheet which is duplicated thousands of times across a network of systems, around the world. Now imagine that this network is designed to continuously update the spreadsheet-this is how blockchain technology works. All information held on the blockchain exists, is shared, and is continuously reconciled. This is why using this technology is beneficial and many people and businesses are getting excited about its potential. This technology’s database isn’t stored in any particular location. All records are truly public and each transaction can be easily verified. This technology is hosted by millions of systems from different places around the globe simultaneously; its data is accessible to everyone over the internet.
The conventional way of sharing documents or files with collaboration is to send Microsoft Word Documents to another recipient. The problem with this old concept is that users have to wait until they receive a return copy, before they can make or see any necessary changes. This is how modern day databases work. Two individuals can’t edit with the same record more than once. This is how financial institutes maintain transfers and money balances. Access is locked when they are making the transfer, update the other side, and then re-open the transfer for access. With Google Sheets or Google Docs, both parties get access to the same file at the same time, the single version of the file is always visible to both. It is a shared ledger but in the form of a document.
Many major companies around the world are showing interest in this new technology, rightly so, due to its huge potential and that it can revolutionize every field in the future. The World Bank estimated that around $430 billion money transfers were processed in 2015. This new technology cuts down the role of middlemen for all of these transactions. What’s more, personal computing becomes accessible to the general public, with the help of latest gadgets like smartphones or tablets. Transactions with this new technology will become fast and cost-efficient. However, this technology can’t be limited to only financial sector.