Blockchain may have been mentioned in your news feed. This concept is still new to many, but you don’t need to be scared. This is because the idea itself is not new. In fact, it’s been around since 2021. What is it all about?
The main goal of Blockchain technology is to implement distributed ledger technologies (DLT). What does this imply? It simply refers the most recent financial transaction and recording technology that uses peer-to-peer technology for real-time transactions and calculations. The idea originated on the Internet. However, it has now spread to other areas like finance, software development, and real-estate.
Vitalik Buterin is one of the founders and leaders of the Blockchain project. This is basically a digital ledger that functions like the original internet, but is less fragile than the webbed Internet. The distributed ledger stores transactions. This ensures everyone involved in the transaction has their updates at all time and that they are not altered by anyone. The distributed ledger ensures that transactions are secure and cannot reversed.
The Blockchain does not only include ledger transactions. It also includes smart contract, which is a kind of virtual machine or program that can perform certain tasks. The ICO platform allows its users create smart contracts that can perform the functions of collateral exchange, settlement administration, and other such transactions. Hence the Blockchains use a sort of a virtual machine or computer program to facilitate the transfer of currencies and other monetary values. The concept is not limited to the currencies alone. Blockchain technology is also used to transfer and store financial instruments like stocks, bonds, or commodities.
Without the consent of an individual or organization, access to their personal information and data is not possible. This is the very essence privacy and an essential feature the Blockchain technology. Transactions on the Blockchain are encrypted and the identity of the transactional user is masked. Hence the transactions run virtually risk free and are safe from any unauthorized access.
Unlike the public ledgers, the Blockchain does not rely on any third party for the transactions. There is no possibility for theft or unwanted transactions. The public ledgers, however, are vulnerable to hackers and can be tapped by anyone with your financial information. Blockchain transactions are transparent and managed by a network that is susceptible to malware attacks. You can rest assured that your data remains secure and private if your digital wallet is hosted by a reputable institution.
As more people become aware of its potential and the many benefits it offers, the popularity of Blockchain has increased dramatically. Many financial institutions have begun to use the technology for internal applications. Financial institutions, such as banks, hedge funds, asset mangers, and other financial institutions, are using Blockchain technology for their internal applications and successfully integrating it into the systems. Many well-known companies, such as PayPal, MasterCard, Visa, and MasterCard, have already adopted the Cryptocurrency concept for internal purposes. As more people become aware of the benefits of Blockchain technology and the necessity for it, it is evident that Blockchain use is growing.
Experts from the fields of Computer Science and Math are slowly adopting the concept. Many renowned universities are investigating the implications of public blockchain technology to their academic purposes. Developers are creating prototypes for the next generation cryptocurrencies, like the Maidsafe (and Counterpart) due to growing demand. The future of cryptospace is brighter as more people take part in the concept. Also, competition between different cryptospace participants increases and becomes stronger.
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