Blockchain- A Secure and Trustless Future for Transactions
Dec 13, 2017 Posted / 1310 Views
Blockchain Technology is the underpinning technology behind Bitcoin, which was invented by Satoshi Nakamoto. He explained about this technology in his White Paper on Bitcoin in January 2009.
Bitcoin is basically a kind of a digital currency, which permits you to make anonymous (peer-to-peer) transactions. Much of the popularity of the currency was owing to a characteristic, which defined that there is no need of an intermediary or a central entity such as a government, financial administrators, policy makers or a bank.
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Blockchain in its initial days was linked with Bitcoin for its application and utility. But in the contemporary times, we have acknowledged that its usage is far wide than just the Bitcoin. Moreover, Blockchain has been able to gain attention from many important international organizations such as Microsoft, IBM, and United Nations.
According to the CEO of IBM, Ginni Rometty blockchain is on the similar lines to the Internet, and will provide an equivalent benefit for the trusted transactions as the Internet did for communications.
The blockchain is a technology which can facilitate the transfer of any digital asset by sharing and exchange of information and ownership when required by the users. Additionally, there is no central entity or authority that has power over the information or the database. The information is fixed/updated/appended by the blockchain community rather than any sole individual or central authority.
This is a pragmatic solution for the users. The Blockchain technology offers a technology solution where a rare digital property can be transferred to the other user. Additionally, the transfer is certain to be secure, and every other user will know that the transfer has taken place, and moreover, no one can object to the authenticity of the transfer.
Blockchain Technology offers many benefits in comparison to the traditional technologies, for instance in the security and legitimacy of the transactions. The very initial advantage is the decentralization of information and database, which means that there is no distinct entity or organization controlling the network, and is substituted by the entire network including multiple nodes.
Economical- An astonishing amount of finances are exhausted on third parties or intermediaries to authenticate the transaction or the information. Blockchain technology eradicates the prerequisite for any middleman.
Time-efficient-The transactions on the blockchain are almost instant. It is even possible to substantiate thousands of transactions in minus than a second.
Transparent- Every transaction on a blockchain is stored and recorded for everyone to utilize at any point of time. No altercation or manipulation of the data is likely to happen.
Immutable- Since blockchain is a decentralized platform and there is no central authority, which means that no transformation of information on the blockchain is possible without the acknowledgment or consensus of the users. A network of nodes authenticates the entire database on the blockchain, and most of the nodes on the blockchain can instantly find out any frauds or malice by any party for its benefit.
Irreversible- Once a transaction takes place in the blockchain it cannot be reversed. As there is no mediator or supreme authority, the transfer of funds can’t be restricted according to the wish of the one user; it is frequently compared to paying in cash.
Pseudonymous- Blockchain addresses are just arbitrary set of alphabets and figures, which do not expose any private or delicate information or data about the user. Nonetheless, it is very simple for any person to convey that they control a particular address, with the help of the address’s private key.
Secure- It is extremely difficult for one distinct party to obtain sufficient impact over a blockchain network as to be able to corroborate a counterfeit or fraud in the transactions. Even though any one acquires such an influence, it will exhaust the resources more than it will benefit anyone.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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