There is no doubt that technology is evolving daily giving us something to feel amazed on a daily basis. The Blockchain technology can be considered as the latest achievement in this direction that has influenced the finance sector positively. If you are not aware of this latest technology that has taken the complete financial sector in a storm then this article would be helpful for you.
What is Blockchain Technology?
It is difficult for a person to understand about this mysterious technical term called blockchain if you go by the technical terms. However, in simple words, blockchain is nothing but the records of the digital transaction made. This is pretty much similar to the ledger that we are maintaining since ages to record the credit and debit transaction between people.
You might have heard about Bitcoin – The digital money, the blockchain technology was developed for it, but now it is used for various other applications. The blockchain is like an electronic database that stores each transaction like ledger, which is distributed among the computers in the network. The database is updated in real time and distributed continuously to ensure every computer in the network has the same transaction details. For more details you should go url.
How does Blockchain Technology work?
This is a technology that has decentralized the whole transaction process. Normally, in banks, the whole data is saved at a single location and the transaction can be completed only once the bank verifies and approves it. However, in blockchain technology, the data is not saved at a single place, which makes it safer. This technology will keep the hackers at bay because they will have to manipulate data in millions of computers at a time. This cutting-edge technology was designed to make transactions of cryptocurrency safer.
The data is hosted by the millions of the computer in the network, which makes it easier for anyone to access, but nobody can manipulate it. Hackers cannot even bring down the transaction because to do that they will have to bring down millions of computers, which are in the network.
Unique Properties of Blockchain Technology
Blockchain technology was introduced to the industry because of cryptocurrency, but because of its numerous unique and useful features today various applications are using the same technology.
- There is no single entity that can control the date or transaction or the information. This makes it more trustworthy.
- The data is not stored at a single location so there are no chances of any failures due to a computer system. This makes it more efficient and powerful.
- The complete details about the transaction that is called the block are hosted through a public network. This way a complete transparency of all transactions is maintained.
- The data stored and hosted across millions of computers in the public network are similar, which makes it impossible to corrupt it. This makes it more secured.
As per the reports of the World Bank around US$ 450 billion digital money transfer was made in just one year after the introduction of this latest blockchain technology. This shows the trust that people are having on this latest technology that also eliminates the role of middlemen in financial transactions.