Blockchain Explained: Things You Definitely Need To Know
Everyone knows about bitcoin and its creator Satoshi Nakamoto.
Besides bitcoin, Satoshi created something more ingenious called Blockchain.
What Is Blockchain?
Blockchain was created by Satoshi as a way to record bitcoin transactions safely in the publicly accessible ledger. But it has evolved into so much more.
Blockchain extends into the following three concepts:
Details like the amount, time, and date of a number of transactions are stored in a block.
Every new block includes the cryptographic hash of the former block, thus linking the blocks and forming a chain.
Data becomes unalterable once it reaches the blocks.
Any device like a computer, laptop, or server can act as a node. They are required to keep the blockchain running and updated.
Blocks of transactions can be accepted or rejected by nodes.
All the nodes are inter-connected to keep the network secure and maintain its functionality.
Nodes save blocks of transactions in the blockchain.
Miners add blocks of transactions on the chain to verify them and the process is called mining.
Miners use special hardware and software to conduct complex mathematical calculations.
Miner is rewarded financially for successfully mining a block.
Note: Don’t try mining if you aren’t already familiar with it. It isn’t as easy as it sounds.
Vitalik Buterin proposed to combine programmable code with cryptocurrency on the blockchain network. Thus creating Ethereum.
The creation of Ethereum made tech community recognize the potential of blockchain and all of a sudden, blockchain wasn’t just a transaction ledger anymore.
Hundreds and thousands of projects based on blockchain started to come to light.
Blockchain showed everyone a better way of data management.
Below are some major benefits of blockchain:
Major cryptocurrencies like bitcoin and ethereum run on the blockchain platform to maintain their transparency and security.
Even some traditional banks are also implementing blockchain for their back-channel management.
Financial systems based on blockchain are also decentralized, meaning no entity can control its outcome. This is highly frustrating for world governments.
3. Supply Chain Management
Supply chain management is often messy and consists of many intermediaries and unnecessary paperwork. Its solution is blockchain-based management.
With blockchain, product details will be stored and monitored accurately, transactions will be public and intermediary costs will be reduced.
It just provides a better way of voting.
Since no entity can regulate or change its outcome, voting will really become transparent.
Voting will actually become meaningful with blockchain.
5. Energy Resources
What can blockchain possibly do for the energy market?
Well, blockchain can provide better handling of energy resources as well as better efficiency.
It will also remove the power abuse of big energy giants.
6. Healthcare Industry
Healthcare management is already messy.
Patients get frustrated managing their records and often make mistakes.
Inefficiency in the healthcare sector can result in bad situations for its patients.
Blockchain can store all the data of patients in an open ledger and make it easily accessible by doctors. So, patients don’t need to carry documents and doctors can handle patients efficiently.
7. Internet Security
Every now and then, we hear about how hackers stole money or secret information.
No online system is completely secure. There will always be some loopholes.
Blockchain can provide better security against different types of attacks. As blockchain is decentralized, hackers won’t be able to pinpoint a location to breach.
Blockchain is still very under-rated.
Blockchain can do wonders once it’s integrated into the real world.
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