Blockchain is a new trend that you may have heard about. Blockchain is still a relatively new concept for many people, but this doesn’t mean you should be afraid. The idea isn’t new. It has been around since 2021. What’s the deal?
The main aim of the Blockchain concept is the implementation of distributed ledger technology (DLT). What does this actually mean? It simply refers, in simple terms, to the most current financial transaction and record technology that uses peerto-peer tech to allow for real-time transactions. The concept actually originated from the Internet but it has now spread into other areas including finance, software development, electronic money transfer and real estate.
Vitalik Buterin, one the founders of Blockchain, explained that this is essentially a new digital ledger which works like the internet but is more secure than the webbed Internet. The distributed ledger records transactions. This ensures that all parties to the transaction have the latest information at all times, and that no one can alter them. The distributed ledger ensures that transactions are secure and cannot reversed.
The Blockchain is not just for ledger transactions. Smart contracts are a type virtual machine or computer program that can carry out certain tasks. For instance, theICO platform allows its users to create smart contracts that perform the function of collateral exchange, settlement management and other such transactions. Blockchains act as a kind of virtual machine or computer software that facilitates currency and other monetary exchanges. The concept is not limited to the currencies alone. Blockchain technology allows financial instruments like commodities, stocks, and bonds to be transferred and recorded.
Without consent, individuals and organizations cannot have access to their personal information or data. This is the very essence of privacy and an essential feature of the Blockchain technology. Blockchain transactions are encrypted. Transactional users’ identities are hidden. The transactions are almost risk-free and safe from unauthorized access.
Blockchain transactions are independent from public ledgers. There is no possibility for theft or unwanted transactions. In contrast, the public ledgers are susceptible to hackers and there is every possibility of someone tapping your financial data. Blockchain transactions are transparent. They can be managed by a community of users, who could be infected by malware that targets public ledgers. Hence the chances of hacking and phishing are very much reduced and if your digital ledger is hosted by a renowned institution, then you can be rest assured that your data is absolutely safe and secure.
As people begin to realize the immense benefits of Blockchain technology and its potential, the popularity has increased exponentially. Many financial institutions have adopted the technology to improve their internal processes. 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. It is clear that Blockchain usage is growing as more people realize its benefits and the need for it.
Experts in the field of Computer Science and Math are gradually embracing the concept of the cryptocurency and many renowned universities are researching on the implications of the public blockchain technology for 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.
know more about How to get started with blockchain & cryptocurrencies here.