The Revolutionary Technology Called the Blockchain
Recently I’ve had several people ask me what is Blockchain. My answer is simple, it is a way of classifying money into transactions made with digital currencies such as Litecoin, Namecoin, and other digital currencies. Basically, when someone makes a transaction to another party, whether it be a business or a regular individual, they are making an economic transaction with the use of a particular digital currency. A large portion of these transactions take place online, so you have Blockchains all over the internet.
The best way to think about the Blockchain is as follows: Each Blockchain is nothing more than a database that keeps track of digital signatures that are transferred from one computer to another on the internet. Every computer that has internet connectivity is a part of the Blockchain. However, there is an option open to any individual or business that would like to add their data stored in this virtual database. You can add your digital signature to any transaction you wish to make and as long as every transaction you make is recorded in the Blockchain, then you will be able to claim your portion of whatever value was transferred. This is why it is known as tamper-proof or “blockchain technology.”
If you don’t know much about the Blockchains, here is an easy breakdown: In the hands of a skilled and knowledgeable marketer, the Blockchain can be used to create a new marketplace where buyers and sellers can come together; furthermore, this marketer could possibly use the Blockchain to facilitate interbank loan transfers as well. Nowadays, some venture capitalists and business executives are starting to see the potential of the Blockchain as a distributed ledger. With this technological innovation, they believe that the possibilities of running a company more efficiently is not only within their horizon but theirs alone. With this added functionality, it is expected that the profitability of a corporation could go up as more users come online and make use of the Blockchains for making smart contract offers and purchases. The bottom line is that the possibility of greater efficiency and cost control within a business is within the grasp of every entrepreneur today.
One of the most interesting attributes about the Blockchain is its immutability. Since everything is controlled by one unified database, there is no room for fraud. No hacker or entity of bad intent will be able to infiltrate this network to corrupt or delete anything from it. Because of its immutability, the integrity of the Blockchain cannot be compromised in any way. This means that if a person tries to alter the records in any way, it will be instantly detected by the entire network.
The most fascinating attribute about the Blockchain is its ability to handle large volumes of data. Because of its underlying hash function, the transactions on the ledger are very fast and very cheap. When compared to the traditional databases, the amount of data processed in a block is much higher. What makes the ledger stand out from the other financial networks is that it is capable of being completely replicated by a machine.
The future of currencies is headed towards a world where all monetary exchanges are performed via the Blockchain. With its immutability, the Blockchain is expected to replace the traditional databases all over the world. Its greatest value though is the increased efficiency, it allows its users. The use of the technologies like the Blockchains is the only way forward when it comes to tackling the challenges presented by the marketplace.