What is Blockchain technology?

Internet has changed the world and Blockchain technology will going to do the same thing in couple years from now.

Introduction

In general, Blockchain is a technology that allows people to transmit data safety, rely on a complicated encryption system. As its name, your data will be stored in many block and they are chained together and share the information. If one block is false, the chain still works and can recreate the broken link.

If we go into more technical explanation, the Blockchain provides a hierarchical data file called a "digital ledger" and uses encryption technologies. Everyone can see their transactions. This network is basically a series of computers that all have to approve a transaction before it can be validated and recorded. It's like sending a letter and everyone confirms the letter is yours. Your letter will be sent to various computers and confirmed, the contents of the letter will be scattered and re-entered into a matching string.

The easiest example to understand Blockchain tech is using a sharing Google Doc file. Everyone is allowed to view the content and may update the information. However, deleting and editing existing content is not possible. So your data can not be erased and possibility to last forever.

Is Blockchain safe enough?

Due to it encoding system, it’s possible to say that Blockchain is extremely safe. Of course, it still can be hacked or attack but the data and the system will survive and remain to work. Because Blockchain cannot be controlled by any entity, so no one can change its system alone. Data in Blockchain cannot be changed and only added more when there are approvals from all blocks in the system. With this way, your data is always accurate and qualify.

How does Blockchain work?

Let’s take a look at the info graphic below:
Two people are planning to transmit date over the internet.

Photo source Coindesk

Each of them has a private key and a public key to enter the house.

Photo source Coindesk

They need both keys to open the door and the combination between two keys will become their identity. This is also considered to be their own digital signature and let you have a strong control of who had changed anything.

Photo source Coindesk

But this identity controlled is not enough to protected digital relationships. While verification is solved, it must be worked with a means of approving connections and agreements. For Blockchain, this activates with a distributed system.

As a chain with thousands and millions links with the same data, you can see this network cannot be broken, like a tree in a forest. You will know which tree fell and re-plant it later with data from others.

The system will record every changes and exchange with other links to share the data and preserve the original and apply new changes.

Photo source Coindesk

With this method, your action will be recorded like this:

Photo source Coindesk

This makes sure that everyone knows who did anything, at any time and consider approving it or not. For tons of action, the block chain will be created with the core is the public key and the identity is your private key.

Photo source Coindesk

This is just the simple way to understand how the system in blockchain works and records your data.

Who will take advantage of this Blockchain Technology?

As web organization, it’s not necessary for you to learn and understand about this technology to make it useful for your life.

Presently, finance is now the field that can take the strongest use cases for this technology. International transfers, for example. The World Bank evaluates that over $430 billion US in money transferences were made in 2015. And at the moment, there is an extraordinary request for Blockchain developers.

The Blockchain possibly cuts out the trader for these types of communications. Individual computing became available to the overall public with the creation of the Graphical User Interface (GUI), which took the method of a “desktop”. Likewise, the most popular GUI planned for the Blockchain are the so-called “wallet” presentations, which people use to purchase things with Bitcoin, and supply it along with other crypto or encoding currencies.

Trading online is closely associated to the procedures of identity authentication. It is easy to visualize that wallet applications will change in the upcoming years to include other forms of identity supervision.

Conclusion

It can be said that blockchain was created as a revolution to make e-commerce activities safer and more cost effective. This system completely changes the way people perceive internet commerce. The greatest potential of Blockchain is the combination of smart contracts, a technology that helps transactions and agreements be confirmed without disclosing information between any participating parties.

At present, there are many businesses, companies follow the trend to create a separate blockchain network to serve the transaction, so in the future blockchain will be extremely developed and widely applied.