Whenever “Blockchain” is mentioned, our minds immediately go to cryptocurrency. The truth is, Blockchain technology is bigger than cryptocurrency and can be adopted by almost all areas of life.
Let me show you how
A blockchain is a large distributed database that organizes records of information into blocks that are connected together through a chain of transactions known as a ledger. Blockchain technology relies on a network of computers called nodes, and it can be controlled by a single party or multiple parties.
Most blockchain nodes are controlled and verified by multiple parties, which makes them decentralized and distributed across the network. Since the data nodes are controlled by multiple users and because the data is not controlled by a single individual or organization, it makes it more trustworthy, transparent, and also reliable for network participants.
For security purposes, blockchain networks can either be private or public. When private, they are only accessible by authorized individuals, but when public, they can be accessed by all individuals in the network.
Also, when a new piece of data comes to the network, it must be verified by all nodes before it is accepted. Already existing data cannot be tampered with; the blockchain records every asset that is sent, received, or owned.
In simple terms, a blockchain is a collection of records connected and protected by cryptographic algorithms, which cannot be altered.
Blockchain technology is revolutionizing transactions and seeks to provide fast, safe, and secure transactions without third-party interruption. These transactions are done using secure digital currencies and assets.
Blockchain technology is not only used for cryptocurrency but now has a very important role to play in the world’s institutions. For instance, in finance, blockchain technology can be used to keep records of financial transactions, especially using smart contracts to perform faster cross-border transactions.
In technology, blockchain is also playing a significant role in developing the 3rd generation of the internet, known as Web 3.0, which will be more user-interactive. Not forgetting the field of medicine, where blockchain can be used to keep track of vaccine distribution and the status of individuals with a health record.
To conclude, blockchain technology is a simple yet broad concept; what do you think about the concept, and in what other industries do you think the use of blockchain technology has improved?
Let us know in the comments.
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Photo by Shubham Dhage
