Blockchain may have been mentioned in your news feed. Blockchain is still a relatively new concept for many people, but this doesn’t mean you should be afraid. The idea isn’t new. In fact, it’s been around since 2021. What is it all about?
The main aim of the Blockchain concept is the implementation of distributed ledger technology (DLT). What does this mean? It simply refers to the latest financial transaction and recording technology that use peer-to-peer technology to allow 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.
As explained by Vitalik Buterin, one of the founders of the Blockchain project, this is basically a new digital ledger that works 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.
Apart from ledger transactions, the Blockchain also includes smart contracts, a sort of virtual machine or a computer program that can be programmed to carry out certain tasks. The ICO platform allows users to create smart contract functions such as collateral exchange, settlement management, and other transactions. Blockchains can be described as a virtual machine, or computer program, that facilitates the transfer and storage of currencies and other monetary value. This concept is not restricted to currencies. Blockchain technology is used to transfer and record financial instruments such as bonds, stocks, and commodities.
Without their consent, personal and organizational data cannot be accessed. This is the essence of privacy and an essential feature in Blockchain technology. Blockchain transactions are encrypted. The identity of the transactional user can be hidden. 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. The Blockchain is completely secure and does not allow for unintended 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 and managed by a network that is susceptible to malware attacks. Therefore, hacking and Phishing are less likely. Additionally, if your digital account is hosted by a trusted institution, you can rest easy knowing that your data and transactions are secure and safe.
As people are more aware of the potential benefits of Blockchain technology, their popularity has risen dramatically. Many financial institutions are now using the technology for their internal applications. Financial institutions such banks, hedge funds or asset managers, as well as other financial institutions, are integrating the Blockchain technology into their systems. Some well-known companies like Visa, MasterCard, PayPal and others are already adopting the concept of the Cryptocurrency for internal uses. As more people recognize the benefits of Blockchain, and the growing need for it, it is evident that Blockchain usage is on the rise.
Experts in Computer Science and Math are slowly accepting the concept of the Cryptocurency. Numerous renowned universities are studying the implications for their academic purposes. With the growing demand for the Cryptocurrency, the developers are developing the prototypes for the upcoming generation of the cryptocurencies like the Maidsafe and the Counterpart. The future is bright, as more people get involved with the concept and the competition grows stronger among different cryptospace participants.
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