Blockchain technology was originally created for a unique cryptocurrency called Bitcoin made by either a person or a collection of different people who is under the pseudonym, Satoshi Nakamoto. They invented Blockchain as a base for their main creation Bitcoin, as that was the only way it would work. Who would’ve thought that his platform would be the one that is changing the game.
Just like everything else in the world, people have taken Blockchain and adapted it for more advanced and other uses, and it is now one of the most modern technology yet. Now, let’s get to what you really came here for; what is Blockchain technology?
A Blockchain is a log for all the transaction records inputted during a specific amount of time. It is made up of small blocks that has each transaction that occurred during that time as well as a HASH, which is essentially an identification code to differentiate every block.
Each block has a code because there is a limited amount of space in every one, so once filled it will move on to the next which is connected to it; hence the name Blockchain which refers to the chain of boxes linked together.
One of the best things about Blockchain is that it is decentralized, which means that there is no specific controller and all are individual. Because of that, if someone tries to hack into it, their block will be very different from the many others because they are all verified for legitimacy from the beginning.
All the blocks need to have a unanimity in the data, so when the hacker’s block shows up as different, it will be rejected and thrown out; this all makes Blockchain quite secure and durable against cyber attacks. The public also has the ability to go through any of the records to verify it themselves, which makes it very user friendly and also leaves an accessible paper trail which could help in auditability as there is the entire history of each transaction stored.
As mentioned previously, Bitcoin was the original use for Blockchain, but as the world keeps changing, so does its uses. Many people also use it for other important things such as stocks and bonds, voting, medical records, contracts and so many other valuable records one might need safe and secure.
Blockchain eliminates the use of a trusted third party (think of banks, accountants/ accounting software, the government, etc) so the users can exchange information directly between them which saves both time and money. There have been a few Blockchain tests against major Japan banks to determine if it really is faster and more efficient than wire transferring.
The answers is yes, it is. It did a good amount more transactions per second than the inter bank wire system did with a difference of doing only 14 transactions per Blockchains’ 15. There are still some flaws and weaknesses in this program unsurprisingly, such as the costs and energy consumption.
Overall, Blockchain is a highly developed technology that is being improved with each passing day and is reasonably believed to go in huge demand during the upcoming years.