Nowadays, blockchain is the most discussed topic around the globe. Some people are genuinely interested in knowing its concept and functioning when others are entirely unknown to it.
But, as the time is going by, awareness for blockchain is growing. It’s definite that the ones who are already a part of blockchain network can never dictate anything negative about it because it sufficiently changes your vision to see the world.
What is Blockchain?
The blockchain is a technology, comprises a worldwide network of several servers used to manage the database altogether, and records transactions of cryptocurrencies. Simply, it can be said that cryptocurrencies are backed and maintained by this network system, despite getting involved with any regulatory authority. It means that blockchain proposes all the users to perform decentralized transactions. The decentralized system functions by a peer-to-peer connectivity, that’s why excludes third-party interruptions.
“A blockchain is a computer on which anyone can upload programs to and leave the programs to auto-execute, where the present and all past states of every program are always open to public, and which carries crypto in economically secured manner, guarantees that programs running on the chain will be executed in exactly the way as blockchain protocol describes.” — Vitalik Buterin
Through a blockchain, several people can write entries into a record called ledger, and a group of users can get to know how the record of data is amended and updated. The distributed ledger created by blockchain technology has an entirely different virtual backbone. This is what makes this technology an exclusive one among others. It shows innovation in information registration and distribution that excludes the need for a government body to facilitate digital relationships.
Thus, blockchain can be said as a combination of different proven technologies merged to get a whole new way. The result of such a combination is a system for digital interactions that does not require a trusted third-party. Securing digital relationships is kind of implicit, availed by the convenient, but robust system architecture of blockchain technique itself.
Assigning digital belief
Trust is an entity related to the belief among different parties, and in the virtual world, defining trust means to verify identity and authorize permissions.
In the blockchain technology, private key cryptography offers a powerful ownership tool that fulfills verification requirements. Possession of a private key is termed as ownership. It also saves a person from sharing more private information than he/she would be needing to perform an exchange, keeping them open for hackers.
Authentication and authorization being implemented while using blockchain, allow interacting in the virtual world without relying on any other party. Blockchain technology is mostly defined as the fundamental for a transaction layer used for the Internet, the base of the Internet of Value.
Indeed, the idea that cryptographic keys and distributed ledgers can incentive’s users to protect virtual relationships has imaginations running super-fast. Starting from governments to well-established IT companies to global banks, all are trying to build such a transaction layer.