What is Blockchain Technology
The blockchain is an incredibly unique, ingenious invention that allows for the distribution of digital information, blockchain technology has helped spawn a new type of Internet. In addition to its use as the backbone of Bitcoin and other cryptocurrencies, the tech community is devising new uses for the ground-breaking technology each and every day. The best is yet to come.
Bitcoin is often called “digital gold.” and Blockchain technology can create other forms of digital value. In fact, as an incorruptible digital record of transactions, it can be programmed to record virtually anything of value.
THE POSSIBILITIES ARE TRULY ENDLESS!
THE SCIENCE BEHIND BLOCKCHAINS
Blockchain technology can be hard to grasp. To simplify things, picture it as a spreadsheet that is regularly updated and duplicated over and over again across a dynamic network of computers. In essence, this is a blockchain. It’s a database of shared and regularly reconciled information. Rather than being stored in a single location, the information is stored across a network of computers to keep it easily verifiable and truly public. It’s completely decentralized.
This type of structure also keeps blockchains safe from hackers as there is no centralized version to corrupt. The sky is the limit when it comes to the benefits of this type of technology. Delving deeper into blockchains, each one is made up of nodes. A node is a computer that’s connected directly to the blockchain network via a client that relays and validates transactions. Every node joins the blockchain voluntarily as an “administrator” and is incentivized to participate in the network. In the case of cryptocurrency, miners are incentivized with the opportunity to win Bitcoins by solving complex mathematical problems.
Bitcoin was the launching pad of blockchain technology, but it’s now recognized as only one of its many future applications. Since its inception only a few short years ago, there are already hundreds of cryptocurrencies flooding the Internet, and several other applications are already in development. From file storage and smart contracts to crowdfunding and stock trading, the roots of blockchains will soon run deep.
BLOCKCHAINS AND ENHANCED SECURITY
By storing information across a network, blockchains don’t suffer from the risks associated with data being stored in a central location. There are absolutely zero points of centralized vulnerability for hackers to exploit. Similar to today’s encrypted username and passwords system we all know so well, blockchains also use encryption in the form of public and private keys, which help make blockchains incorruptible.
That being said, when you invest in Bitcoin or another cryptocurrency, it’s recommended to print out your private key and keep it in a “paper wallet” for enhanced security.
BLOCKCHAINS – THE FUTURE OF WEB
Blockchains offer Internet users an unprecedented ability to authenticate digital information and create value. Much more than the backbone of Bitcoin and cryptocurrencies, which are likely to continue exploding in popularity and value, experts agree they’ll soon be used for a variety of new business applications, including:
- File storage
- Land and title registration
- Data identity management
- Smart contracts Intellectual property protection
- Crowdfunding Supply chain auditing
- Stock trading, and more!
THE FUTURE IS LIMITLESS, BLOCKCHAINS ARE LITERALLY CHANGING THE WORLD ONE NODE AT A TIME.