What is Blockchain?
I am sure that by now you must have come across the word Blockchain and you are probably wondering what that is. Well, Blockchain is a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publically
Some key characteristics of Blockchain.
- It has increased network capacity. The most outstanding thing about Blockchain technology is how it improves the ability of the whole network. Therefore, several computers have been able to work together which offers excellent power than a few of the devices where the things are centralized.
- Better security. Blockchain technology has better protection since the chances of shutting down the system are quite slim. Bitcoin, an application entirely based on Blockchain technology, for example, has never been hacked. The blockchain is secured by some computers called nodes which are almost impossible to cut.
- it has increased the speed of settlement. Traditional bank systems can be slow due to the settlement time which generally takes days to proceed. Blockchain can settle money transfer at breakneck speeds saving financial institutions a lot of time and money as well provide convenience to customers.
- Decentralized system. It gives you the power to store your assets in a network which further access using the internet; an asset can be anything like a contract a document or so. The blockchain is thus such an essential tool for decentralized the web.
Applications of Blockchain
- Smart contracts. They are digital self-executable agreement that business parties sign in cooperation with each other’s terms and conditions. Smart contracts applications include financial agreement, health insurance, real estate property documents as well as crowdfunding. They are very safe as they are not prone to alteration and hacking.
- It promotes fair government election. Blockchain smart contracts provide a modern system that eradicates fraud. Entry in the smart deals will allow transparency and security while maintaining the privacy of the voters thus enabling fair elections.
- The other application is identity management. The distributed ledger technology users in Blockchain offers you advanced method of public-private encryption using which you can prove your identity and digitize your documents. Hence you can safely conduct online transactions.
The blockchain is probably one of man’s most superior inventions. Based on its fast speed, its high level of security increased capacity and decentralized system which applies in areas such as business and voting. With all of its extensive uses, it is correct to say that Blockchain technology is here to stay.
Timeline of Blockchain
Blockchain technology is one of the most notable innovations of the 21st century. It is having an immense effect on various sectors such as finance, manufacturing, and education. What do many not know however is that Blockchain dates back to 1990s, insightful right?
History of Blockchain Technology
Stuart Haber and W. Scott Sternotta envisioned the technology in 1991. Later in 1992, the two upgraded their system enabling the collection of more documents on a single block. However, it is in 2008 that the Blockchain story started to gain momentum thanks to the work of one person or group of people that went by the name Satoshi Nakamoto. Nakamoto is the brains behind the Blockchain technology. The truth is that very little is known about Nakamoto since all people know about him is that this mysterious person or people conceptualized the first Blockchain in 2008 from where the technology has evolved and found its way into many applications beyond cryptocurrencies.
How has Blockchain technology evolved?
The Blockchain technology has gone through a series of evolution steps which this piece seeks to explain. They are as follows:
- Blockchain emergence (200 – 2013). Nakamoto designed the genesis block from which other blocks were mined, interconnected resulting in one of the largest chains of block carrying different pieces of information and transactions. Ever since then Blockchain has adopted a long list of applications.
- Ethereum Development (2013 – 2015). Ethereum was born out as a different public Blockchain in 2013 with additional functionalities compared to Bitcoin, a development that has turned out to be a crucial moment in Blockchain history. It differs from Bitcoin in that it has a function that allows people to record other assets such as slogans. Officially launched in 2015, Ethereum Blockchain has become one of the leading applications of the Blockchain technology.
- The Future of Blockchain (2018 onwards). Blockchain chronicle and evolution does not stop with Ethereum and Bitcoin. In recent years, some projects have cropped up all leveraging Blockchain technology capacities. New projects have sought to approach some of the deficiencies of Bitcoin and Ethereum in addition to coming up with new features leveraging Blockchain capabilities.
Blockchain technology future looks bright in part because of the way governments and enterprises are investing big as they seek to spur innovations and applications. It is becoming increasingly clear that one day there will be a public Blockchain that anyone can use.
Why is Blockchain Technology Important to Us?
Let’s define Blockchain technology.
It is the technology responsible for the Blockchain, a digital ledger in which transactions made in Bitcoin or any other cryptocurrency are recorded chronologically and publicly. This incorruptible digital ledger can be programmed no only to record financial transactions but also virtually everything of value it is the invention of Satoshi Nakamoto who may be an individual or a group of people, no one knows.
What are the outstanding characteristics of the technology?
I believe you are probably wondering why people are making such a big deal of technology when people keep inventing new things every day. The truth is that; it has several impressive features hence making it such a sensation. Some of these features include:
- It’s decentralized thus cannot be controlled by a single entity thus making it impossible to manipulate for selfish intentions.
- It has not recorded a single point of failure in the past.
- It is transparent and pretty much incorruptible.
- It is very secure to use.
- It is very fast.
- It has increased Network capacity.
what are some of the popular applications of this technology?
The truth is its applications are rather extensive, and we could not expound them entirely even if we tried every new day; people are discovering some of its new uses. Let’s discuss a few, shall we
- Information storage. Corporations, as well as individuals, can store information ranging from car logs, business transactions to medical records. This information cannot tamper with thanks to the encryption of data thus its users are assured of high-class privacy.
- It is essential in defrauding charities. Blockchain technology when adopted into the charitable organizations’ systems, keeps companies accountable thus eliminating embezzlement of funds and contributions.
- Smart contracts. They are digital self-executable agreement that business parties sign in cooperation with each other’s terms and conditions. They are used like ordinary contracts only that they are safer as they are not prone to alteration and hacking.
- The technology is battling electoral fraud. Recently applications have been created to combine voting with Blockchain technology; this will counter electoral fraud or any other kind of corruption involving voting.
- It encourages ethical business practices. The technology makes possible to track every transaction with complete transparency hence making it easier to observe all its users’ activities. Too bad for illegal businesses as they will have no choice but to engage in more ethical practices and help build the economy.
I cannot think of any single technology that has provided all the solutions that Blockchain has. Not only is it safe and fast but also it can be used in a whole spectrum of fields. In my opinion, this is a technology worth exploring and based on how effective it is, I can say with a lot of confidence that the future is brighter with Blockchain technology.