Blockchain: The Most Disruptive Technology We Have Ever Seen
When it comes to crypto, you’ll hear the word “blockchain” tossed around.
But just was it is?
In short, it’s a database that is validated by an open community rather than one centralized authority. Insider this ledger resides a collection of transactional records – all of which are part of a “block” linked together to other blocks. Then, when new data is entered, it can never be deleted, creating a true and verifiable record of each and every transaction ever made.
Even more impressive, information here is heavily encrypted.
Even if hackers compromise information on a single server, there are thousands of other copies around the globe. What’s interesting is that all copies of the database must agree with all other servers that any changes to data were legitimate. If even one server cannot confirm changes are legitimate, changes are rejected immediately.
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According to Evening Standard:
Any data put into the blockchain must be verified. Transactions are grouped together in blocks, hence the name blockchain, then verified by the computers (nodes) in the network. When a computer joins the network as a node, they receive a copy of the blockchain, which acts as proof of all the transactions that have been performed. This means that all data stored on the network is transparent; it is public by default. This also means that all the data in the blockchain network cannot be corrupted or deleted. However, this doesn’t mean you can see who is doing the transaction. For instance, with bitcoin, the public can see that someone is sending an amount to someone else but there is no information linking the transaction to anyone. This is because the public keys linking the transaction are kept anonymous.
What it allows you to do is produce a dependable ledger without record-keepers. It also eliminates the dangers that come with data being kept in a central location. Not only does it foster trust, it replaces third-party intermediaries with all blockchain participants certifying the transactions taking place.
Plus, according to Fortune:
The blockchain enables companies doing business with each other to record transactions securely. Its strength lies in its trustworthiness: It is difficult to reverse or change what’s been recorded. The blockchain can also hold many more documents and data than traditional database storage, allowing for more nuanced insights and analysis. It can also hold embedded contracts, such as a lease for a car, whose virtual key could be transferred to a bank in the event of a default.
No wonder some of the biggest companies in the world are exploring the technology.
- Microsoft for example believes the technology can help businesses increase their efficiency and speed, and even simplify operations by reducing time and cost.
- Qualcomm believes that the security provided by the chain can help alleviate issues in client server based information systems.
- MasterCard has invested a good deal of resources into the chain, as well. In fact, the company hopes to create new commerce opportunities for the digital transfer of information by allowing businesses to transact on a distributed ledger.
According to analysts at PWC:
And that’s just the start of its adoption.
We believe that as more individuals and businesses adopt a technology that can help with efficiency and transparency, it may just change the way the world does business.
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