Blockchain - The ideas
Decentralization
Blockchain is actually a decentralized technology. Anything that happens on it is a function the network as a whole. A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions. Bitcoin is managed by its network and not any one central authority. Decentralization means the network operates on a user- to user (peer to peer) basis.
Who uses blockchain?
The world bank estimates that over $430 billion US in money transfer were sent in 2015 and at that moment there is a high demand for blockchain developers. Finance offers the strongest use cases for the technology. The blockchain potentially cuts out the middleman for these types of transactions. The most common think we can see that is devised for the blockchain are the so-called 'wallet' applications, which people use to buy things with Bitcoin, and store it along with other cryptocurrencies.
Blockchain and its security
By storing data across its network like an internet, the blockchain eliminates the risks that come with data being held centrally. Hacker can exploit a computer that centralized all the data but not blockchain which store data across networks. Blockchain security methods use encryption technology.
The basis for this are the so-called public and private 'keys'. A 'public key' (a long, randomly-generated string of numbers) is a users' address on the blockchain. Bitcoins sent across the network get recorded as belonging to that address. The 'private key' is like a password that gives its owner access to their Bitcoin or other digital assets. Store your digital assets on the blochcain and it is incorruptible.
Blockchain is actually a decentralized technology. Anything that happens on it is a function the network as a whole. A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions. Bitcoin is managed by its network and not any one central authority. Decentralization means the network operates on a user- to user (peer to peer) basis.
Who uses blockchain?
The world bank estimates that over $430 billion US in money transfer were sent in 2015 and at that moment there is a high demand for blockchain developers. Finance offers the strongest use cases for the technology. The blockchain potentially cuts out the middleman for these types of transactions. The most common think we can see that is devised for the blockchain are the so-called 'wallet' applications, which people use to buy things with Bitcoin, and store it along with other cryptocurrencies.
Blockchain and its security
By storing data across its network like an internet, the blockchain eliminates the risks that come with data being held centrally. Hacker can exploit a computer that centralized all the data but not blockchain which store data across networks. Blockchain security methods use encryption technology.
The basis for this are the so-called public and private 'keys'. A 'public key' (a long, randomly-generated string of numbers) is a users' address on the blockchain. Bitcoins sent across the network get recorded as belonging to that address. The 'private key' is like a password that gives its owner access to their Bitcoin or other digital assets. Store your digital assets on the blochcain and it is incorruptible.
With blockchain Technology....
The web gains a new layer of functionality. Users can transact directly with one another. Bitcoin transaction in 2016 averaged over $200,000 US per day. With the added security brought by the blockchain new internet business are on track to unbundle the traditional institutions of finance.
Blockchain technology had been believed by many people that it holds great potential especially to optimize clearing and settlements - money transfer, data storage and more, and it could represent global savings of up to $6billion per year.
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