Heard a lot about Bitcoins and Cryptocurrency? I am sure you did, that is why you are here to understand the technology behind them- Blockchain Technology.
Blockchain Technology is a digital form of the decentralized public ledger which keeps on growing its list of records, referred to as blocks, and is incorruptible leaving a timestamp of transaction data behind.
To have a better understanding of the basic phenomena of the blockchain technology, it is worth referring to Google sheets/ docs. You must have used the free online tool at your work as well as personal toil. Unlike the traditional MS Excel, say if you were using at work to maintain a master sheet of data and need to update it every day at the end, and then share it with your senior, which shall be further updated to the boss, it is impossible share the same LIVE, and update it and or correcting it by seniors at the same time. But this wasn’t the case with Google docs/ sheets.
Blockchain technology is thus more transparent which leaves less possibility of getting corrupted. It is said that the blockchain network is updated at short regular intervals. Thus, a blockchain network is a kind of self-auditing digital ecosystem wherein each transaction referred to as blocks reconcile at regular intervals. Each block contains a cryptographic hash of the previous block.
The reconciliation of blocks in a blockchain technology is called block time. Block time may vary for different cryptocurrency systems. The block time of Ethereum is around 15 seconds while that of Bitcoin is around 10 minutes.
It is believed that in the future, cryptocurrency will be the major financial mode of all sorts of transactions. The Internet is definitely gaining new functionality with the advent of blockchain technology. According to Forbes publication on Nov 2017, Bitcoins itself processed USD 2 billion worth of transactions per day in 2017, which is a 10x hike from the preceding year.
Edge with Blockchain Technology
- No single point of failure
- Controlled for every single entry
- Decentralized & Transparent
- Expediting transactions by reducing redundancy in the system
Hurdles Anticipated with Blockchain Technology
- Giant financial institutions aren’t ready to accept the open-source model of identity.
- Critical regulation
- Security concerns
Please leave a comment and share your take on Blockchain Technology.