Over the past few years, you have consistently heard the term ‘Blockchain technology,’ probably regarding cryptocurrencies like Bitcoin. 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 understand what is Blockchain, the technology used, how it works, and how it’s becoming vital in the digital world.
According to Global Data’s Thematic research report, the demand for cryptocurrencies has receded by 20% during 2018 when compared to the previous years. The reason being businesses are preferring to deploy traditional approaches for their earlier stage projects rather than going with Blockchain technology.
People have higher expectations based on weaker perceptions based on the report findings, and, in a couple of years, the truth about the Blockchain will be demystified. It has real value, and, over time, the scope of it will become wider and more user-friendly.
So, 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 article, you will learn what Blockchain technology is, how Blockchain works, why it’s important, and how you can use this field to advance your career.
Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer-to-peer nodes. Typically, this storage is referred to as a ‘digital ledger.’ Every transaction in this ledger is authorized by the digital signature of the owner, 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 can’t corrupt it.
Suppose you are transferring 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? There is a potential issue which 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 these types of transactions, hence the evolution of third-party payment applications in recent years. But this vulnerability is essentially why Blockchain technology was created.