Blockchain is the distributed and decentralized digital ledger entry which is the combination of encrypted financial data. In Blockchain technology, the data is represented by the digital sign and record of the transaction. It ensures the authenticity and integrity of the new technology.
The fact is the business owner and educated people are showing massive curiosity with it and especially with Bitcoin which is one the form of Blockchain or cryptocurrency. However, other digital currency and factors are also going forward to ensure the technology with trust and acceptability. With this in mind, let’s briefly look at here about Blockchains— how they work and why they will change the world.
What is Blockchain?
In a word, Blockchain is the block of encrypted information and transaction with the use of digital ledger and sign which is not changeable.
For example, when you send or receive any money from the bank, it keeps the record or entry on the script or computer database. It is called a ledger. Blockchain works like the ledger but in the specialized technology which is secure with different types of blocks.
For this reason, Crypto-currency uses Blockchain technology. Mainly, it is the digital form of conventional currency including Dollar or Pound. The most used Cryptocurrency are Bitcoin, Bitcash, Monero or Litecoin.
How Does Blockchain Work?
Now the question is how does blockchain work? It is really a magic science. No one can control the system and the whole work or entries are served among a great deployment or infrastructure. When a new transaction happens, all the connected systems are informed and a new copy of the node is created with the help of an authenticated ledger.
So how does it verify? When an individual person requests for sending or receiving the payment, Blockchain’s nodes execute the algorithms and check if the signature is valid. The interesting fact is it completes the whole process automatically according to the technology or program. If it is valid, a new node will be added and it will keep the records. Otherwise, it will deny the request.
In the hope that the cryptocurrency or Blockchain technology keeps all the individual transaction records on all the computers connected with the system and anyone can see it except the real identity or providing the signature, they can’t see the details.
How can Blockchain change the World?
With the use of the latest technology and ascertaining 100% security, Blockchain has made the process easier and people can trust it for reducing hassle.
In the traditional currency, they have a third party to maintain the banking system which is costly and takes a huge maintenance fee when Blockchain technology has no hidden fees to perform the task or building the infrastructure. For this reason, it has changed the whole concept of the transaction.
On the other hand, through the traditional payment system, if you want to use the online payment gateway or want to make cash, it is not reliable even can be hacked your account. But in Blockchain technology, the use of financial ledger entry with digital signature and verification has made the process promising.
Lastly, I should tell the available open-source projects and functional technology is the hard part of Blockchain although the leading tech giants are coming in this concept and trying to develop the organized blocks or infrastructure.
It is true, the future is going to be changed in the currency system and no doubt the Blockchain technology is taking place as the foundation. What do you think about Blockchain or Cryptocurrency?