Bitcoin is the most chanted word in the recent past. Blockchain is the technology behind bitcoin, but Blockchain is often associated with bitcoin and other virtual currencies. People who have associated with this technology says what the world has seen on blockchain is only the tip of a iceberg, which means there is plenty that can be made out of Blockchain. Blockchain has the potential of transforming many industry verticals.
If you a read a piece of advice or heard from your neighbour to invest in bitcoin or trade some Ethereum and have come across the word blockchain and wondering what it actually is, you have come to the right place.
Let us make one point clear, Blockchain isn’t just for bitcoin. It’s much beyond bitcoin.
Blockchain technology is not simple when you get deeper into the concepts, however the basic concept is not too tough either. It is an effective database that is validated by a community. It can be defined as a collection of records that a group of people maintain rather than a single entity like a bank or a government.
In the concept of blockchain, block represents the volume of transaction records and the chain component links all of them together with a # function. As the records get piled up, they are authorized by a distributed network for computer and are paired up with previous entry in the chain. This creates a chain of blocks or a blockchain.
As mentioned earlier the blockchain is retained on a large network of machines, which means no individual has control over its history or its records. Blockchain is more like a public ledger that cannot be easily tampered. It is like a built in layer of protection which is not possible in the case of standard, centralized database of information.
Blockchain challenged the traditional methodology, where we have a trusted central authority like bank or government to fulfil the needs of contracts. Blockchain makes it possible to have the people around us guarantee trust for us in an automated, secure fashion. This is the innovation that blockchain brings and that’s why you may have heard it being used as a reference to cryptocurrency. However blockchain has a potential to maintain variety of information like electoral voting system or handling patient records.
In spite of blockchain having potential, there are some serious consideration that needs to be addressed before calling it as a technology for the future. This presents a numerous opportunities for companies today working in the blockchain space. There is a tremendous chance to innovate and grab the first mover advantage in the market.
We understood above that the calculations in blockchain are tedious and will need a network of super computers to do the job. The power consumed by a network of expensive network of super computers is also high and equally expensive. This is one area of concern from an infrastructure point of view.
Transaction speed is also another issue. When the blocks in the chain needed to be verified by a distribution network, it takes time. There is a saying that bitcoin’s average transaction time exceeded 41 hours in its initial days. Though this has bettered with due course of time, it could still be an issue in the application of blockchain outside cryptocurrency.
Few more concerns in the areas of complex calculations, security and infrastructure needs to be addressed in near future we will be seeing blockchain technology being more adoptable, flexible and growing. The future looks promising for blockchain for sure.
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