The blockchain might just be one of the most innovative ideas technology have brought us over the last few years. It has been used to create the famous cryptocoin Bitcoin and has now been branching out into many aspects of all industries like, for instance, the crypto tokens and blockchain investment fund in the world of investment. Blockchain was invented by Satoshi Nakamoto, not a real name but a pseudonym by a group of techies. At its infancy, it has merely been an interesting computer science project to most but since then it has now become premier technology space and got everyone asking, what exactly is the blockchain?
The internet, in all its glory, magnificently stores data across multiple locations which allows the sharing of the load in multiple servers. Digital information stored inside blockchain is distributed and not copied which makes blockchain sort of similar to the internet. This was the basis for the bitcoin, the first popular digital currency, which stored the information regarding the transactions to be stored in the so-called distributed ledger. Today, however, more and more technology giants are finding uses for the blockchain and are gaining support and capital from companies through investments like blockchain investment funds.
The digital gold was the title bestowed upon the bitcoin and deservedly so. The total value of the Bitcoin today totals a about $112 billion US. Not to mention the rising values of other cryptocurrencies like ethereum as well which just proves how much value can be gained from the blockchain. It has been forecasted that, at the next decade, at least a tenth of the world’s GDP should be stored in a blockchain enabled technology. The blockchain however will require more knowledge and technical understanding to fully utilize it unlike other forms ventures. The only way to truly understand why the buzz around the blockchain is never ceasing is to know exactly why the latest offering of the digital world is revolutionary. This article will try to guide you into the world of Blockchain.
What is Blockchain Technology?
To put it simply, blockchain technology is a brand new way of keeping information in a digital storage. It is considered virtually incorruptible through it’s digital ledger that stores any form of transactions. And most importantly, these transactions are not limited to economic but of really anything that has value.
Imagine opening an book of accounts, and duplicated across the hands of several accountants in a network. Then now imagine how each of these accountants are in constant contact with each other to ensure that they have the exact same copy of the ledger to the last digit. This is basically how the entire blockchain technology works.
All the information that is kept in the blockchain is considered shared. This means that it is continually being reconciled between nodes. The benefits of this kind of setup is quite obvious. The records are for every node to see meaning everything is easily verifiable. Picture a president lying in broad daylight television while facts are annotated beside him. As there is no single point of entry for any hacker to try to corrupt, he has to simultaneously hack into each and every one of the millions of nodes to be successful. And since the public space is hosting the information, it can be accessed from almost anywhere.
The Document Analogy
When you have used one of the more online office applications such as word processors or spreadsheets, it should be familiar to you how people can collaborate online by looking in the same document. You could, for instance send a report to your colleague then ask him/her to make necessary corrections. This differs from how we traditionally do things with offline applications where we had to send the entire document across the internet then wait for a response. Once it comes back with the necessary corrections, you now have two copies, one that is unaltered, and the other that is altered by your colleague. And when you finish doing your finishing touches There will be three different copies altogether. In banking, this is how it is normally done, that is why you have to wait an n number of working days before the transaction goes through. Using the online application however, the two can collaborate and look at the same document to ensure that there is only one true copy.
Blockchain Resilience and Hardiness
Similar to how the internet operates, the blockchain technology is considered to be extremely robust as that is what has been kept in mind since its inception. By storing the same information across the entire network the blockchain can never be controlled centrally by a single entity. And thus, it cannot have any single point of failure as well.
Bitcoin started out in 2008. And ever since then, Bitcoin the distributed ledger has continued without faltering. If there were problems that may have arose, it was due to attempts to deny the service or human error. This just proves how blockchain enabled technologies are impenetrable.
The internet, since it began as a military project is also known for the same kind of resilience for 30 years, in fact. And as both the internet and blockchain technologies continue to be developed, there should be no worries about the future for both these technologies.
As blockchain lives across multiple networks, every each one of the nodes in the network should readily be able to verify information and in turn, they can respond to verification requests as well. This kind of transparency is what makes it the perfect candidate to store economic transactions.
Nowadays, blockchain technologies are slowly creeping up on us and soon enough we would be living in a world where the digital coin will replace all currencies and blockchain investment funds replacing all kinds of funds. In this futuristic world, it might be wise to get a grip of what really is going on and get a headstart.