Blockchain Technology: What You Need to Know?

Blockchain technology may have become the latest buzzword alright, but it is more than just that. It is undeniably one of the most disruptive technologies ever, having permeated different industries and grabbing the attention of global business leaders. According to a Transparency Market Research report, the worldwide blockchain markets is likely to hit $20 billion towards 2024-end. So, it becomes rather important for us to know what the blockchain technology is all about.

What is the blockchain?

It may seem intimidating at first glance, but the core concept isn’t that complex. The blockchain is essentially a permanent, immutable, transparent ledger comprising of records of transactions. These transactions are distributed across a P2P network of computers all over the globe and updated in real-time.  Every transaction creates a secure block which is connected to the one before this only after all network nodes have validated it. Since nodes agree with one another, no banks or institutions are needed to approve transactions.

While a blockchain may resemble a database, the difference is in their structures. The blockchain will store data in groups or blocks which have specific storage capacities. When filled with data, these blocks get chained to previous blocks to create a blockchain.

What are benefits of the blockchain?

  • Ensure better security: Since all network nodes must approve of transactions before new blocks can be added, hackers cannot easily access data. This makes the blockchain technology a godsend for industries like healthcare and fintech where medical records and financial records must be protected at all time from cyber thefts.
  • Eliminates downtime: Since the network is decentralized and distributed, data gets replicated across thousands of computers all over the world. This rule out the chance of downtime and data loss. There is no one point of failure, making data more secure and economical.
  • Guarantees better speeds and lower costs: The decentralized distributed network implies that every node has the same ledger. Therefore, you do not require a third party for validating a transaction. This helps to reduce processing time, thereby lowering administrative costs.
  • Increases transparency: As all data are transparent and permanently recorded, it can be evaluated and tracked by authorized users. For instance, you can trace the source of products in the supply chain system, making it possible to detect security breaches, if any.

How secure is the blockchain?

Blockchain is the go-to technology these days because of its focus on trust and security. New data blocks are always stored chronologically or added at the end of a blockchain. Once a block is added, it is practically impossible to go back to change or erase it. To do that requires a majority consensus.  Every block has a distinct hash, together with the hash belonging to the block right before it. When data is edited, the hash automatically changes. So, if any hacker tries to change the blockchain and steal records or funds, he will have to change/edit his own copy. That edited copy will then stick out and the breach will be detected instantly.

Different uses of the blockchain:

Companies like Pfizer, Siemens, and Walmart have already started using the blockchain; IBM has been leveraging this to trace origins of food products. Perhaps the biggest beneficiary of this technology will be the banks and fintech institutions. By integrating blockchain into banking operations, banks can now offer speedier transfers for customers. Blockchain is the foundation for cryptos like the Bitcoin that is fast growing into one of the most preferred investment options for new-age investors. Bitcoin trading has attained significant growth in the cryptocurrency market with the emergence of automated trading bots like Bitcoin Up. Go through the bitcoin up app erfahrungen reviews which gives a clear picture that this bot provides an exciting way to make profits while trading cryptocurrencies. Healthcare providers are using it to store patient medical records securely. Not only healthcare but other major sectors also implement blockchain technology in order to secure data and perform faster transactions.