Short Explained Blockchain Technology
What is Blockchain Technology?
“The blockchain is an incorruptible digital ledger of economic
transactions that can be programmed to record not just
financial transactions but virtually everything of value.
Don & Alex Tapscott, authors Blockchain Revolution (2016)
The blockchain is the technology the underpins digital currency (Bitcoin, Litecoin, Ethereum, and the like).
Blockchain technology enables distributed public ledgers that hold immutable data in a secure and encrypted way and ensure that transactions can never be altered. While Bitcoin and other cryptocurrencies are the most popular examples of blockchain usage, this “distributed ledger technology” (DLT) is finding a broad range of uses. Data storage, financial transactions, real estate, asset management, and many more uses are being explored.
Blockchain Advantages :
Trust & Transparency
Database management between businesses is much easier
Data protection/security is improved on a large scale
Payments and data are processed much quicker
Is Blockchain Secure?
This distributed ledger technology is a tectonic shift from a traditional single owner to multiple participants in a business network. Blockchain’s skyrocketing adoption is centered on the technology’s ability to ensure data integrity through tracing and identifying a single source of truth and consensus of all parties for approving a transaction.
Banks and financial services providers were first off the block when it comes to blockchain adoption. International Data Corporation (IDC) predicts that no less than 25% of global banks will incorporate blockchain in their operations by 2019. Fintech is not the only vertical that blockchain is set to disrupt. We will see rapid deployment in manufacturing, healthcare, retail, telecom, government, and education verticals as well.
The possibilities are endless. Self-executing smart contracts, digital currencies, fraud detection, real estate records, patient data privacy, automated claim processing, inventory management, product origin tracking … name a transaction and blockchain technology will transform it.
To understand how and why blockchains are so resistant to tampering and fraud, we need to understand how they work.
Without getting too technical, let’s take a look under the hood and see what’s going on.
The information stored on a blockchain is stored in groups – called blocks – and each block is time-stamped and linked to the one generated before it in time, creating a linear chain of blocks – hence the term blockchain.