Blockchain is a new trend in cryptosporch trading. Blockchain is still a relatively new concept for many people, but this doesn’t mean you should be afraid. This is because the idea itself is not new. It has been around since 2021. What is it all about?
The main aim of the Blockchain concept is the implementation of distributed ledger technology (DLT). What does this all mean? It simply refers a new financial transaction and recording system that uses peer to peer technology to allow real time transactions and calculations. Although the idea was originally developed on the Internet it has since expanded to finance, software development, real estate, and other areas.
Vitalik Buterin is one of the founders and leaders of the Blockchain project. This is basically a digital ledger that functions like the original internet, but is less fragile than the webbed Internet. Transactions are stored on the distributed ledger. This ensures all parties involved in transactions have their updates at any time and that no one can alter them. Transactions are safe and can’t be reversed, hence the need for the distributed ledger.
Apart from ledger transactions, the Blockchain also includes smart contracts, a sort of virtual machine or a computer program that can be programmed to carry out certain tasks. The ICO platform makes it possible for users to create smart agreements that can perform the function of settlement management, collateral exchange, or other transactions. Blockchains can be described as a virtual machine, or computer program, that facilitates the transfer and storage of currencies and other monetary value. This concept does not only apply to currencies. Financial instruments like bonds, stocks and commodities are also being transferred and recorded using the Blockchain technology.
Without consent, individuals and organizations cannot have access to their personal information or data. This is the very essence, and a key feature of Blockchain technology. Blockchain transactions are encrypted. The identity of the transactional user can be hidden. Transactions on the Blockchain are virtually safe and secure from unauthorized access.
Blockchain transactions are independent from public ledgers. The Blockchain is completely secure and does not allow for unintended transactions. The public ledgers however are vulnerable to hackers, and it is possible for someone to tap your financial data. Transactions on the Blockchain are completely transparent and are managed by a network of users that run the risk of being infected by any form of malware that attacks the public ledgers. Hence the chances of hacking and phishing are very much reduced and if your digital ledger is hosted by a renowned institution, then you can be rest assured that your data is absolutely safe and secure.
As more people become aware of its potential and the many benefits it offers, the popularity of Blockchain has increased dramatically. Many financial institutions are now using the technology for their internal applications. Financial institutions such banks, hedge funds or asset managers, as well as other financial institutions, are integrating the Blockchain technology into their systems. Some well-known companies like Visa, MasterCard, PayPal and others are already adopting the concept of the Cryptocurrency for internal uses. It is clear that Blockchain usage is growing as more people realize its benefits and the need for it.
Experts in Computer Science and Math are gradually accepting the concept. Numerous renowned universities have begun to research the implications and potential uses of the public blockchain technology. With the growing demand for the Cryptocurrency, the developers are developing the prototypes for the upcoming generation of the cryptocurencies like the Maidsafe and the Counterpart. As more people participate in the concept, and as the competition between cryptospace participants grows stronger, the future looks bright.
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