Top 9 Questions about Blockchain Answered

The tech world is constantly bursting with game-changing trends. For those who are the beginners and are discovering new tech wonders, we have prepared a concise guide to the blockchain ecosystem. Find out how your business or work can benefit from this outstanding technology.

Blockchain is a distributed ledger of any transactions programmed to record any kind of information. The blockchain network is built on the consensus mechanism meaning that each executed transaction is compared and agreed. Data stored in blockchain has no single location because it exists in the ledger as a shared and constantly reconciled database. There is no centralized unit that controls all the transactions since information is simultaneously hosted by all network users. Hence, if you make an agreement in the blockchain, you will not be able to change or fake it whatsoever. It is especially useful when parties don’t trust each other and want to ensure a fair and transparent deal.

Potentially, any industry can adopt blockchain technology to optimize and streamline business processes ensuring security, immutability, transparency of all records and their transactions.

Blockchain and Bitcoin are very much related while bearing different functions. Blockchain (aka a distributed ledger technology) serves as a decentralized network for transacting cryptocurrencies, such as Bitcoin, Dash, Ethereum, and many others. Think of blockchain as an operating system, while Bitcoin would be an application running on the distributed ledger system.

The principal difference between public and private blockchain is based on data privacy and authentication.

Unlike public blockchains, private blockchains are closed networks for authorized members only. Usually, such blockchains are permissioned and available for invited users only. Generally, blockchain can be applied to tangible, intangible and digital units carrying value, e.g., insurance, copyright, cars, photos, videos, etc.

Bitcoin Blockchain is open to the public, which means that anyone can become involved in the transaction confirming his existence by complex cryptographic challenges called mining. Yet, ensuring stability, security and safety of the Bitcoin network require a resource-intensive mining and processing power (hardware, energy, time) to approve transactions. Hence, everyone in a private blockchain network knows who they are dealing with. At the same time, mining and intensive computational power become unnecessary.

Blockchain is an immutable distributed ledger — or, simply said, a secure, transparent, and decentralized database. Bitcoin heavily relies on the Blockchain’s open public p2p network and immutability of its blocks, utilizing its cryptography to record bitcoin transactions, verify users’ balances and transactions history.

All that distinguishes blockchain from other traditional systems, where an attacker can easily steal funds or vital information from someone’s account without the owner’s consent.

Traditional security in large distributed systems is based on trusted intermediaries, who store and manage your assets. A break-in or manipulations of a third party may cause damage to the business. This is where blockchain can help — it empowers end-users with full control over their funds and data, and allows them to regulate each transaction.

The unique benefits of blockchain over other security tools are:

Related posts:

Sunoo mengunyah roti isinya sambil membaca bukunya, dia sudah membaca hampir setengah dari Odyssey dan tak bisa meletakkannya bahkan ketika waktu jam tidur. Dia begitu ingin selesai membacanya dan…