Blockchain may have been mentioned in your news feed. Many people are still unfamiliar with this but there is no need to be apprehensive. This is because the idea itself is not new. It’s actually been around for years. So what’s it all about anyway?
The main purpose of the Blockchain concept refers to the implementation of distributed ledger tech (DLT). What does this mean? It simply refers the most recent financial transaction and recording technology that uses peer-to-peer technology for real-time transactions and calculations. Although the idea was originally developed on the Internet it has since expanded to finance, software development, real estate, and other areas.
Vitalik Buterin (one of the founders) of the Blockchain project explained that it is basically a new digital leadger that functions as the original internet but is less vulnerable than the webbed Internet. Transactions are recorded on the distributed ledger which ensures that all the parties involved in the transaction have their updates at all times and that nobody can tamper with them. Transactions are secure and can’t be reversed hence the need to use the distributed ledger.
The Blockchain is not just for ledger transactions. Smart contracts are a type virtual machine or computer program that can carry out certain tasks. The ICO platform lets users create smart contracts to perform the functions such as settlement management, collateral exchange, and other similar transactions. Hence the Blockchains use a sort of a virtual machine or computer program to facilitate the transfer of currencies and other monetary values. This concept is not restricted to currencies. Blockchain technology is used to transfer and record financial instruments such as bonds, stocks, and commodities.
Without consent, an individual or organization’s personal data and data cannot accessed. This is the very essence, and a key feature of Blockchain technology. Transactions on the Blockchain are encrypted and the identity of the transactional user is masked. Transactions on the Blockchain are virtually safe and secure from unauthorized access.
Blockchain transactions are independent from public ledgers. Hence there is no chance of any unwanted transaction and no possibility of any theft. However, hackers are able to hack the public ledgers and steal your financial data. Blockchain transactions are transparent. They are managed by a group of users who are susceptible to being infected with malware. Therefore, hacking and Phishing are less likely. Additionally, if your digital account is hosted by a trusted institution, you can rest easy knowing that your data and transactions are secure and safe.
As more people become aware of its potential and the many benefits it offers, the popularity of Blockchain has increased dramatically. Many financial institutions are now using the technology for their internal applications. Financial institutions like banks, hedge funds, asset managers and other financial institutions are making use of the Blockchain technology for internal applications and are successfully integrating it into their systems. Many well-known companies, such as PayPal, MasterCard, Visa, and MasterCard, have already adopted the Cryptocurrency concept for internal purposes. As more people become aware of the benefits of Blockchain technology and the necessity for it, it is evident that Blockchain use is growing.
Experts in the field of Computer Science and Math are gradually embracing the concept of the cryptocurency and many renowned universities are researching on the implications of the public blockchain technology for their academic purposes. Developers are creating prototypes for the next generation cryptocurrencies, like the Maidsafe (and Counterpart) due to growing demand. The future of cryptospace is brighter as more people take part in the concept. Also, competition between different cryptospace participants increases and becomes stronger.
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