Now that people buy and sell things online, blockchain has become as universal of a word as CD Rom was in the 20th century. People say that they can’t live without blockchain. But what is blockchain and what is its future? Read this article to find out!
What is Blockchain?
“Blockchain is new and vast, so what exactly is it anyway?” Break down the word ‘Blockchain’ etymologically and you will come up with the root words ‘Block’ and ‘chain.’ It is easy to understand Blockchain if you think of it as a lot of blocks (of information) which are stored on a chain (of different computers in various places around the world.)
Information can only be stored on a blockchain (network) if it has all of these three distinct components:
- The ability to store vital and relevant information about financial Transactions Technology
- The ability to store detailed and relevant information about customers (including buying patterns)
- The ability to store distinct and unique information in each block
Information that is stored using blockchain technology is made secure and confidential because each “block” is encrypted using a unique value called a ‘hash. ‘Since each block of information has a different hash, you can identify blocks of information if you know their hashes. A hash is not a unique symbol or the number sign. Hashes that are associated with blockchain are cryptographic codes that computers create using algorithms. Hashes are an invaluable part of blockchain because they allow merchants to identify different purchases made by customers at the same store. Technology is the important things and it will get us everything’s new in future.
Blockchain information ‘blocks can store up to 1GB of information. This makes them ideal because companies can store them on different computers on their and different networks without having to rely on the cloud. A computer will generate a new ‘block’ of information every time a new financial transaction is made.
A ‘block’ must meet certain criteria to be considered part of an integrated into the entire blockchain. They are:
- Blocks can be created only after a financial transaction takes place.
- The computer system which you created and completed the financial transaction must be able to verify that it was a legitimate transaction. This is crucial in the era of identity theft.
- Once verified, the different computers on the networks in the system must store the block(s) of information immediately and keep them secure.
- The chunk of information must be kept confidential and secure through the assignment of a hash. Only people and entities who know that hash will be able to access the information in that block.
Blockchain technology is the future
Blockchain Technology is quickly becoming a popular way to accept financial transactions for businesses. Therefore, its future is bright. Blockchain is expected to become used even more often and even more extensively as the world increasingly integrates and becomes global. Every business owner must have a basic understanding of blockchain technology if he or she wants to survive in the hypercompetitive digital era.