Many people think of blockchain as the technology that powers bitcoin while this was its original purpose. Blockchain is capable of so much more. Despite the sound of the world, there’s not just one blockchain. Blockchain is shorthand for the whole suite of distributed ledger technology, that can be programmed to record and track anything of value from financial transactions medical records.
Things You Should Know About BlockChain
You might be thinking we already have a process in place to track data, what so special about blockchain? Let’s break down the reasons why blockchain technologies tend to revolutionize the way we interact with each other.
1. The way it tracks and stores data
Blockchain stores information in batches called blocks. That is linked together in a chronological fashion to form a continuous line metaphorically a chain of blocks. If you make a change to the information recorded in a particular block, you don’t require to rewrite it. Instead, the change is stored in a new block, showing that X changed to y at a particular date and time. Sound familiar?
That is because blockchain is based on the centuries-old method of the general financial ledger. It is a non-destructive way to track data changes over time.
2. It creates trust in data
Before a block can be added to the chain, a few things happen.
first, a cryptographic puzzle must be solved, thus creating the block. The computer that solves the puzzle share the solution to all of the other computers on the network, this is called proof of work. The network will then verify this proof for work and if correct the blockchain will be added to the chain. We can trust each and every block on the chain.
3. No more intermediaries
currently, when doing business with one another we don’t show the other person is financial for business records. Instant, we rely on trusted intermediaries such as a bank or lawyers. These intermediate build trust between the party.
As we know, all blocks added to the chain have been verified to be true and can’t be tampered with. This type of trusted peer to peer interaction with other data can Revolutionize the way we access, verify and transact with one another. And because blockchain is a type of technology and not a single network it can be in implemented in many different ways.
1. Public blockchains – some blockchains can be completely public and open to everyone to view and access.
2. Private blockchain – other can be closed to a selected group of authorized users such as company, government agencies.
3. Hybrid Public-Private blockchains
There are hybrid public private blockchains too in some, those with private access can see all the data. Where the public can see only selections.
It is a combination of decentralizing all the data. Building trust in the data, and allowing us to interact directly with one another. And the data that gives blockchain technology the potential to under in many of the ways we interact with one another.
but much like the rise of the internet this technology will bring with it all kinds of complex policy questions around governance, international law, security and the economy.