Many of us dig our heads into social media and think it is a big thing on the current internet scenario. But for your surprise, it is not. Blockchain is the next big thing on the World Wide Web and it has a tremendous impact on the internet for the next many decades and counting.
What is Blockchain Technology?
A blockchain or block chain is a list record called blocks which are linked with cryptography. Every block holds cryptographic hash of the previous block, a timestamp, and transaction data which presented as a Merkle tree root hash.
The chain of blocks is designed in a way that it is resistant to modification of data. It can be seen as an open distributed ledger which can efficiently record transaction between two companies or parties in a valid and permanent fashion. A blockchain is managed by the peer –to –peer network collectively complying with a protocol for validating new blocks.
Stuart Haber and W. Scott Stornetta were the first people to describe the blockchain technology in 1991. The technology was later conceptualized by Satoshi Nakamoto the original creator of bitcoin in 2008. Nakamoto takes the credit for improvising the design using hashcash –like in order to use them without the signature of the trusted party.
There are number of advantages that the blockchain technology offers to the electronic businesses:
Since the blockchain works as a distributed ledger, it keeps the transaction histories transparent. All the network participants share the documents which considered as individual copies. The shared documents can be updated with the majority consensus. The change of one single record requires the alteration of all subsequent records and the involvement of the network. This way, the data recorded on a blockchain is more transparent, accurate and consistent.
2. High –end security
Technically the blockchain is more secure than other transaction or record maintaining system. Every approved transaction on this system is encrypted and linked to the last transaction.Instead of saving the information on a single server the system stores it across a network of computers to protect the data from prying eyes. All the instructions that hold data like financial services, government sector, healthcare – blockchain safeguards the critical details and prevents the data from fraud and unauthorised access.
- Time Saver
The traditional way of data maintaining work is a tedious and time-consuming task and often requires third-party efforts. Blockchain automatically processes transactions on a faster and more efficient note. Since the record is maintained on a single digital ledger which is shared among participants, one does not need to recollect the multiple ledgers. Thus, clearing and settlement of any transaction can occur much quicker and easier.
- Saving cost
Saving cost is a prime goal of any business. One always need shed an extra penny for having third parties or intermediaries trading partner. You can trust on the data stored on the blockchain that supports your business.