What is blockchain?15 Jan, 2020 Judy Rubio
One of the first concepts that people learn in the crypto community is "blockchain". To put it simply, it is a chain of blocks that are made up of digital pieces of information. They have a timestamp and store information about previous records, sort of a ledger. High-performance equipment all over the world helps to fulfill a common goal by running operations for transaction verification. Blockchain has become a breakthrough in the field of database protection and finance.
Features of blockchain technology
An important feature of the system is that there is no single server, and block chains are distributed among the participants. Using advanced encryption algorithms can help protect individual records from being modified or copied by other users. It is the blockchain technology that underlies the work of the bitcoin cryptocurrency. However, it can be used in other areas.
The principle of operation of blockchain technology is as follows:
- A primary block is created; it does not store information about previous records.
- Each following block has a header that contains information about the transaction.
- Users can get information about all blocks, but they only have access to their own.
The development of cloud services sparks a conversation about the broad possibilities of blockchain use-cases. It can be Internet catalogs, online banking, and identification systems for corporate websites.
Cryptographic key verification is required to make changes, which subsequently verifies the identity of the user. When the private key is transferred, access to the block (cash and other assets) is granted. This makes it easy to register transactions that are conducted through online resources.
The use of blockchain technology
Even though the most famous use-case of blockchain is cryptocurrencies, we can only imagine its further implementation in the ever-growing ambitious financial world. For example, government and banking organizations are interested in a distributed system of information storage. The technology can be used to access databases, including pension accruals, medical records, etc.
Blockchain technology has the following application prospects:
- Operations with goods and raw materials
- Information management
- Games online
- Possession right
- Electronic voting mechanisms
Security of using blockchain technology
The record-keeping technology provides reliable security protection. Even if an attacker can hack the server and bypass the protection on one server, he will be faced with an impossible task of hacking most of the computers in the whole decentralized system.
Blockchain technology has many advantages. One of the most important is safety and high reliability. Now the owner of the asset does not need to worry about protecting some server from hacking. Even if you access a single computer and make changes to the code, the system will not accept the result. It will require several dozen confirmations from other sources. Learn more about the latest blockchain news here.
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