Blockchain technology is something that you are sure to have come across when reading about cryptocurrencies. So what is Blockchain technology? This is a decentralized ledger that records every cryptocurrency transaction. Every time a digital coin is bought or sold or in case any good is brought with the digital coin it gets recorded. This is encrypted to prevent any cybercrimes. The transaction is processed and recorded without any third party.
Is this the new age internet?
The invention is indeed genius and is the brainchild of Satoshi Nakamoto. It has definitely evolved from where it all started.
The Blockchain technology allows the digital information to get distributed but it does not get copied. The Blockchain technology creates a new form of internet. The Blockchain technology was created for Bitcoin transactions but today it is finding lots of uses in the technology.
The digital gold, Bitcoin is called so because of the reasons not unknown. The currency value jumped making people rich in a few years’ time. It is not very important to understand how the Blockchain technology works. Just by having basic knowledge you can use it to transact in Bitcoin.
Features of Blockchain
The Blockchain is the compilation of much technologies like distributed computing, PGP encryption, proofs and game theory. The main is however into the consensus. Consensus makes one responsible when using Blockchain technology and they know that their actions will be recorded. It will also reflect the state of their account as well as if any account gets affected by the transactions that are carried out.
It is important to understand these terms.
PGP encryption – This allows the individual to prove the ownership of an account whether in a system or in a secure communication
Distributed computing –This is the study of the systems where the components are basically the network computers. The actions get communicated using protocols messaging
Merkle trees – The hashes of the nodes in the tree helps the connects to get verified for the parents and for the large data structure
Game theory – The natural actions converge to create consensus and stability
Why was the Blockchain technology invented?
The reason why Blockchain technology was invested was that of the shortcomings of the traditional system of banking. Shortcomings like delay in payments were common when doing any bank transaction. The banks also acted as an intermediary and took a cut in the process. The Blockchain method allowed transactions without any middleman.