Blockchain is the technology that runs behind bitcoin the first digital cryptocurrency. It is a distributed public ledger that is used to record transactions across many computers so that it can’t be altered without the modification of all subsequent ledgers and consensus of the network. Blockchain is a decentralized, peer to peer, immutable storage network which is censor free and regulator free because of the absence of a single controlling entity. This in turn allows for a form of self-policing. Data is stored across its peer to peer network, eliminating the number of risks that come with the data held centrally.
Blockchain has the following features:
- Distributed database
Benefits of adopting blockchain technology:
- The idea of blockchain is to remove any third party involved in a transaction. It will cut down the cost by eliminating numerous fees involved in online payments; removing all intermediaries like banks, lawyers, brokers, etc. In the case of Bitcoin, transferring is done without the banking system to finalize any transaction.
- Blockchain relies on distributed ledger technology, so the knowledge of a transaction is shared across all units and any discrepancies are found out immediately.
- The consensus of many people is the most important feature of this technology. If someone tries to modify or hack the network, then they must change every single ledger record in order to make a change.
- The other aspect is the encryption which provides additional security to avert hacking or fraud, leading to a trusted and efficient method for recording.
In this technology era, Blockchain technology is generating a significant amount of interest across the globe. A wide range of industries have already started using it, leaders are customizing the technology for their particular needs. Blockchain has become the center for many industries for trusted and reliable information.