Blockchain was originally created to be a decentralized ledger of bitcoin transactions that take place in the bitcoin network. A decentralized or distributed database / ledger basically means that storage devices, where lasers are present, are not connected to a common processor. Blockchain contains a growing list of transactions through blocks. Each block is temporarily sealed and then linked to the previous block to become part of that blockchain.
Before computers, people kept many of their important documents by making copies and storing them in irreplaceable steel safes, buried treasure chests, or bank wallets. As an added security measure, you will translate each of these documents into an encrypted language that only you could understand. That way, even if someone breaks into your bank vault and steals your belongings, they won’t understand your secret messages, and you still have a lot of backups in other places. Are safe on
Blockchain puts this concept on steroids. Imagine that you and a million friends are able to make copies of all your files, encrypt them with special software, and store them in each other’s digital bank vaults (computers) across the Internet. That way, even if a hacker breaks into your computer, steals or deletes it, they can’t interpret your data, and 999 of your files in your friends’ network , 999 backup. This briefly. Blockchain.
Special files are encrypted with encryption software so that only certain people can read them, secure them on common computers, connected to the network or via the Internet. Files are called ledgers – they record your data in a specific way. Computers are called nodes or blocks. Personal computers that share their processing power, storage space, and bandwidth with each other. And a network is called a chain – a series of connected blocks that allow a computer to work together to share ledgers with each other (hence the name, blockchain).
The social impact of blockchain technology is beginning to be realized and this may be a sign of an iceberg. Cryptocurrencies have already raised suspicions about financial services through the provision of digital wallets, ATM rollouts and loans and payment systems. Considering the fact that there are more than 2 billion people in the world today without a bank account, such a shift is certainly life-changing and can only be a positive one.
It may be easier for developing countries to convert credit currencies than the fiat money and credit card process. In a way, it’s like the change that came with cellular phones in developing countries. Getting cell phones on a large scale was much easier than providing a new infrastructure for landline phones. Many will accept the possibility of selling away from governments and taking control of people’s lives, and social implications can be significant.
One only needs to consider the reliance on identity thefts that have made headlines in recent years. Giving people control of their identities will definitely eliminate such incidents and allow people to disclose information with confidence. In addition to giving vulnerable people access to banking services, greater transparency can also increase the efficiency and effectiveness of charities operating in developing countries that are subordinate to corrupt or manipulative governments. The growing level of confidence in where the money goes and who benefits will certainly result in the need for help and assistance to those in dire need in some parts of the world. Ironically, and not in line with public opinion, Blockchain can create a financial system that is based on trust.
Taking it a step further, blockchain technology is well-equipped to eliminate the possibility of vote rigging and all other negatives associated with the current process. Believe it or not, blockchain can actually solve some of these problems. Indeed. With the help of a new technology, new obstacles and problems will be encountered, but the process is moving forward and the new problems will be solved with more sophisticated solutions.
An unaltered ledger will provide all the necessary data to accurately record votes on anonymous grounds, and to verify accuracy, even if there is any manipulation in the voting process. The scare will be uncontrollable when voters will be able to cast their vote in the privacy of their own home.
Whether blockchain technology What, in fact, remains to be seen as a part of everyday life? Although such expectations have increased the likelihood of the central banks and their liabilities disappearing, as we know them today, the demise of the central financial system is still a long way off. Time will tell how the blockchain unfolds, but one thing is certain today. Stagnation is no longer an option and needs to be changed.
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