What is Blockchain Technology?
Blockchain Technology is the system that Bitcoin and other cryptocurrencies were built on. No matter what happens to the world moving forward, Blockchain is and will forever be the perfect example of the power of ground-breaking industries and the power of investing as a whole.
So what exactly is Blockchain?
To explain Blockchain in a way where you can easily visualize it, imagine literal blocks and they are all literally connected by chains. Each block is in sequential order. The first block came before the second, the second before the third, and so on.
The first block represents the first transaction made in the blockchain and holds all of the data of that first transaction in it.
The second block represents the second transaction, but this time the second block holds all of the data of both the second and the first transaction.
The third block will hold the data of the first, second, and third block. This is what is known as a blockchain.
Now let’s say we’re up to the fifteenth block and a hacker decides they want to tamper with the blockchain’s data. In order for the hacker to hack successfully, they would have to basically hack into the fifteenth block first and then the fourteenth block and then the thirteenth block and so on and so forth.
They would have to hack every single block before the last one in order for the system to not detect that there is a hack going on. That would take forever and honestly the blockchain moves so fast that by the time they’re done hacking one block, there’d probably be a whole lot more blocks on that chain. If the data of one of the blocks do not match the blocks connected to it, the system flags an error and prevents the person tampering with it to make any changes. It would come up as invalid.
Hence the purpose of Blockchain Technology. Blockchain Technology is so secure it is nearly impossible to change any of its data. And everyone who has access to the blockchain can see everything that’s happening in each transaction.
What is the functionality of Blockchain Technology? What can it do?
Now let’s use finance as an example. A bank has the ability to store your money and to send your money from one place to the next. They hold your money for you and tell you what your balance is. But what if you didn’t need a bank to hold your money? Some people don’t trust banks. There’s some people who prefer to stash some or all of their money under their mattress or in a piggy bank. Why? Because banks are regulated by those who have access within their companies. Systems can be broken into or data can be changed by the person regulating it. Humans can steal, commit fraud, and tamper with data if they wanted to.
Blockchain technology eliminates the need for the middle man in transactions. It is ran by numbers, so you don’t need to trust your assets with anyone. And it goes back to the transparency of the blockchain. You see everything that happens with what is yours and no one can tamper anything that rightfully belongs to you. You have full control.
Blockchain technology can be used for many many things. It’s growing at a fast rate and breaking into pretty much every major industry. It’s bringing the option of high security, transparency, and trustlessness in finance, healthcare, arts and entertainment, business operations, voting, and so much more. Blockchain is helping people gain the freedom to have full complete ownership without third party intervention. Blockchain Technology could very much be the future, and it looks like the future is now.