The Blockchain technology is certainly one of the biggest inventions of the 21st century. Many individuals believe that it was invented by Satoshi Nakamoto, who is also known as the inventor of the Bitcoin.
It was not quite popular in the beginning but today it has turned into a global phenomenon. Businesses and institutions across the globe agree that it is a revolutionary technology. It can change the way things work pretty rapidly. Hence Blockchain has been in many important discussions recently, let’s reveal what a Blockchain is and how does it work.
Explaining Blockchain and the Blockchain technology:
Most of the people in the crypto community are familiar with Blockchain. They know it as a technology behind Bitcoin which was basically invented to keep the records. It is essentially a distributed public ledger. It is not operated or controlled by a single person or agency. Every participant in the blockchain has the same control over it as others. That’s what makes it so unique and so interesting.
As the name suggests, a blockchain is basically a chain of different blocks. These blocks are also called nodes which are digitally attached to one another and thus they form a complete chain of blocks. All of these blocks contain information that is updated constantly when information is changed in a block.
When a user updates new information on his block, the data saved in all the other blocks are also updated. Thus, every node contains the same information and it essentially prevents the chances of frauds. Now you might have understood why the blockchain technology seems quite revolutionary and beneficial for many businesses and institutions across the globe.
How does it work?
Nobody controls a blockchain! You might be wondering how a new block or node is added to a blockchain and how such a large network is managed.
There must be a transaction and it should be verified. The transaction after the purchase you make should be verified by using other public records such as securities exchange commission, your local library, etc. Once the transaction is completed and verified, it should be stored in the nodes.
All the important details such as the amount of money, user’s digital signature and the receiver’s digital signature are recorded in the node and then it is attached to the blockchain. This process continues until new clients want to be a part of the blockchain. That’s how the blockchain works.
What industries will benefit from the Blockchain technology?
The list would easily cross 50 if we count every industry. This technology can be a game changer in the healthcare, stock, cloud computing, supply chain, music, forecasting, vehicle rentals, crypto exchanges, education and academia, and many other industries.
There are smart individuals founding startups to exploit the benefits of this newly introduced technology. They are also introducing new crypto coins to trade and run their business. New ideas are emerging with every passing day. Blockchain is truly inspiring people think out of the box and try new methods of doing business in a fair way.