Over the past few years, you have consistently heard the term âblockchain technology,â probably regarding cryptocurrencies, like Bitcoin. In fact, you may be asking yourself, âwhat is blockchain technology?â It seems like blockchain is a platitude but in a hypothetical sense, as there is no real meaning that the layman can understand easily. It is imperative to answer âwhat is blockchain technology, âincluding the technology that is used, how it works, and how itâs becoming vital in the digital world.
As blockchain grows and becomes more user-friendly, the onus is on you to learn this evolving technology to prepare for the future. If you are new to blockchain, then this is the right platform to gain solid foundational knowledge. In this tutorial, you learn how to answer the question, âwhat is blockchain technology?â Youâll also learn how blockchain works, why itâs important, and how you can use this field to advance your career.
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What is Blockchain Technology?Why is Blockchain Popular?Structure and Design of BlockchainHow Does Blockchain Work?Types of BlockchainView More
Over the past few years, you have consistently heard the term âblockchain technology,â probably regarding cryptocurrencies, like Bitcoin. In fact, you may be asking yourself, âwhat is blockchain technology?â It seems like blockchain is a platitude but in a hypothetical sense, as there is no real meaning that the layman can understand easily. It is imperative to answer âwhat is blockchain technology, âincluding the technology that is used, how it works, and how itâs becoming vital in the digital world.
As blockchain grows and becomes more user-friendly, the onus is on you to learn this evolving technology to prepare for the future. If you are new to blockchain, then this is the right platform to gain solid foundational knowledge. In this tutorial, you learn how to answer the question, âwhat is blockchain technology?â Youâll also learn how blockchain works, why itâs important, and how you can use this field to advance your career.
What is Blockchain Technology?
Blockchain is a method of recording information that makes it impossible or difficult for the system to be changed, hacked, or manipulated. It is a distributed ledger that duplicates and distributes transactions across the network of computers participating in it.
Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the âchain,â in a network connected through peer-to-peer nodes. Typically, this storage is referred to as a âdigital ledger.â
Every transaction in this ledger is authorized by the owner's digital signature, which authenticates the transaction and safeguards it from tampering. Hence, the information the digital ledger contains is highly secure.
In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which the transactional records are stored based on actual purchases. The fascinating angle is that anybody can see the data, but they canât corrupt it.
Why is Blockchain Popular?
Suppose you want to transfer money to your family or friends from your bank account. You would log in to online banking and transfer the amount to the other person using their account number. When the transaction is done, your bank updates the transaction records. It seems simple enough, right? However, there is a potential issue that most of us neglect.
These types of transactions can be tampered with very quickly. People who are familiar with this truth are often wary of using them, hence the evolution of third-party payment applications in recent years. However, this vulnerability is essentially why blockchain technology was created.
Technologically, Blockchain is a digital ledger that has been gaining a lot of attention and traction recently. But why has it become so popular? Well, letâs dig into it to fathom the whole concept.
Record keeping of data and transactions is a crucial part of the business. Often, this information is handled in-house or passed through a third party like brokers, bankers, or lawyers, increasing time, cost, or both on the business. Fortunately, Blockchain avoids this long process and facilitates the faster movement of the transaction, thereby saving both time and money.
Most people assume Blockchain and Bitcoin can be used interchangeably, but thatâs not the case. Blockchain is a technology capable of supporting various applications related to multiple industries, such as finance, supply chain, manufacturing, etc., but Bitcoin is a currency that relies on Blockchain technology to be secure.
Blockchain is an emerging technology with many advantages in an increasingly digital world:
Highly Secure
It uses a digital signature feature to conduct fraud-free transactions, making it impossible for other users to corrupt or change an individual's data without a specific digital signature.
Decentralized System
Conventionally, transactions require the approval of regulatory authorities like a government or bank; however, with Blockchain, transactions are done with the mutual consensus of users, resulting in smoother, safer, and faster transactions.
Automation Capability
It is programmable and can generate systematic actions, events, and payments automatically when the trigger criteria are met
