Blockchain Technology, the most trending topic of the year is a public ledger of all cryptocurrency transaction. It is digitalized and decentralized in nature. This technology helps us to securely transfer the ownership of units of values using public key encryption and proof of work methods.
Blockchain allows n number of people to write entries into a record of information. The amendment and updating of the records of information thus entered can be controlled by even a community of users. This runs on a distributed network(s). The transactions entered in blockchain are not centrally controlled by any financial institutions, neither by any bank or by any Government/quasi-Government organizations. As the information additions and updations in blockchain hikes, the more secure it becomes. This also makes it much more decentralized too. The data added in blockchain are arranged chronologically. Since there aren’t any central recording of the digital currency transactions, the market participants can easily track the same. Cryptography technique is used to verify and record all the transactions in blockchains. The blockchain will be connected to each system and this enables the easy downloading of it.
In a general perspective, blockchain technology may seem similar to Wikipedia, but it does differ in many attributes. Wikipedia is built into the world wide web and uses a client-server network server. The entries in Wikipedia are products of a single publisher and is controlled by the same person, either any organization/ institution. But when deeply analyzed, one can find the difference between blockchain and Wikipedia as mentioned earlier.
Bitcoin- the product of blockchain technology, is a type of worldwide payment system. It is also a cryptocurrency, which is also the first decentralized digital currency. It was invented by Satoshi Nakamoto, which is a group of unknown person. It was released as an open source software in 2009. It can be called as decentralized as it works without the administration of any nodal agency say any central bank or any financial organization. Users can directly make transactions and so the network is a peer to peer model. There aren’t any intermediary in between the transactions.
Using bitcoins for purchase and sales of goods and services can be done anonymously. Since it is not tied to any country or any financial/ service organizations, bitcoins are lease/ nill effected by policies and regulations, which enables easy and cheap international payments. As there aren’t any credit card fees, small business favors bitcoin. It can also be considered as a part of investment too.
