The blockchain is a technology which enables a transaction between any two people with a computer or a smartphone, so the data sent is stored in a centralized location and it’s not controlled by one company. It’s stored on multiple computers that are scattered around the globe. There is no individual organisation in controlling this network. The computers are connected to the already existing networks. One of the major application of blockchain is cryptocurrency transaction. Bitcoin is basically a cryptocurrency and it’s used for exchanging digital assets online. It
Blockchain Built Trust Through These 5 Following Features:
Unauthorized access is not possible on blockchain technology. The only way for access is through permissions and cryptography. It also has a better security system because there is no chance of shutting down the single system. Bitcoin is never hacked by hackers. The reason behind is that the blockchain network is secured by the number of computers which is called nodes, And these nodes are granting the permission for secured transactions.
Making immutable ledgers are important values of the blockchain. Any centralized database is subjected to get hacked and they are required to trust third parties to keep their database secured. Blockchain keeps its ledgers in a never-ending state of keeping the momentum.
3. Better and Faster Settlement
Traditional financing or banking systems can be slow, as they take more time to settle which may take days to proceed. This is why banking institutes need to update from their existing banking systems. This problem can be solved in the means of blockchain as it can settle high-speed money transfers which save a lot of money and time.
4. Data Protection
In the existing system we keep a physical or online account which is maintained by third parties, For example, imagine a bank. But in the case of bitcoin, it’s stored in blockchain itself. Users are able to access their bitcoins using their private or public keys. Customers are able to spend their money using these key pairs, while the merchant can receive the money by sharing his public key with the customer.
It involves a miner which is capable of solving the complex mathematical computations. They compete with themselves for the reward which they get after solving the puzzle. The reward will get only for who solves the puzzle first. Also, they will get the transaction fee which is paid by bitcoin users. As there is a huge amount of transaction is happening within the bitcoin network, transaction fees have gone higher.
There are some predictions that most of the governments around the globe will create or either adopt the form of virtual currency. Cryptocurrencies reduce settlement times, and it’s more efficient. Most of the developing countries may come forward to this implementation due to their unstable economies. Next generation blockchain technology will resolve the existing limitations like privacy controls and scalability. There will be also a blockchain identity for the collection of data and cross verifications. As this information is stored on a decentralised ledger, The possibility of hacking is reduced. Surely the blockchain will transform the future technology in a huge aspect