How the Technology Behind Bitcoin Is Changing Money, Business and the World
If you’re familiar with Bitcoin then you might now what Blockchain technology is, although this doesn’t have to be so. Maybe you just use Bitcoin without really getting the technology behind it. You should know the blockchain technology behind it though, as it can have a lot more impact on this world then just through Bitcoin. And we’ll be giving you the basic information you need along with showing you how blockchain is going to conquer the world
What is this blockchain technology?
Blockchain is like one big decentralized database that keeps record of data, it doesn’t have one central place, like a provider, but is saved on all the nodes that are part of this network. All the data that this database contains is encrypted in blocks, that are on a chain. Each block contains a timestamp and the information about the block that came before it in the chain. The database, also called a ledger, isn’t stored in a central place, and it is also completely transparent as anyone can see into it. To make a change to the data, transactions are made. These transactions need to be verified before its block is added to the chain, this happens through what our Bitcoin fans know as mining. A complex mathematical problem needs to be solved using CPU to add a new block to the chain, miners who solve such a problem will receive a reward.
How will this blockchain technology change the world?
You may think that this sounds complicated and technical, but still wonder how this is going to change the world, but let me get to that. The blockchain way of storing information has a couple benefits over other ways, like a centralized database. Firstly, the lack of a central storing unit makes corruption or hacking close to impossible, there is no target for them to hit. As a user of such a network, you don’t need to put any trust in the person you’re making a transaction to, or a third party, like a big bank. And we know that banks have screwed up before, thus blockchain technology can take away this risk. The transparency of blockchain is a benefit as well, it can make a real difference in a world full of corruption.
We’ve mainly seen the use of blockchain technology through various cryptocurrencies, with Bitcoin being the most well-known. These currencies might be able to take over all the fiat currencies which we are currently using. This will take away the risk of our governments printing too much money, and deflation taking place. It will also make the entire economic system a lot more transparent, so you know where your money comes from and where it’s going.
There are more ways in which blockchain technology can change the world though. We are now using blockchain technology to transfer currency, but we could transfer all sorts of information through the use of blockchain technology. Imagine a new way of identification using an online identification system, or how about a cloud that cannot be hacked. These are just a few of the many applications that blockchain can and will have in the future.
Blockchain technology is a promising technology, that has often been named the biggest revolution after the start of the internet. It’s not a household name just yet, but people are becoming more and more enthusiastic, and we believe that blockchain will slowly but surely start to take off. If you want to be prepared for this revolution the it is not a bad idea to chive up your knowledge on blockchain and get to know the system.