Is Blockchain the Future in Technology?
Blockchain technology is gaining more popularity after watching the rapid increase in Bitcoin prices. It is undoubtedly a creative innovation that every person want to know about. The blockchain technology is in use by various thousands of individuals, groups, and company. Although the process of blockchain is not simple to understand, it is among the most spoken about thing in the technological field. This technology is the future of the internet and other technologies or not, we will discuss further in this article.
What is blockchain technology?
Blockchain technology uses a set of transactions using cryptography called blocks. This process allows the transactions in the digital form using encrypted data and codes which diminish the risk of intruding of the third party. It was originally designed for the working of cryptocurrency like Bitcoin but unexpectedly taking up every market. It is the vision that a few tech workers are predicting that it will cover all the technology around us. It came into limelight in 2009 when Bitcoin gain worldwide popularity. All digital currencies use blockchain technology to operate because it is considered more reliable secure and transparent. In ordinary words, it is defined as a digital ledger named digital wallet that is used to record the transactions in the online network. One of the most important advantages is the currency and identity of the user, as well as the other details of the transactions, cannot be tampered.
Traditional Systems Vs blockchain
The transactions in the transitional systems undergo various third-party platform before completion of the transaction adding unnecessary cost and time to it. Whereas in blockchain technology it is not redirected to any other platform and consumes less time. The blockchain technology is more as compare to the traditional systems of transactions because they are decentralized and uses strong encrypted codes and protocols.
The emergence of blockchain Technology
In 2008, it first emerged after the developer of Bitcoin, Satoshi Nakamoto, introduced a peer to peer in electronic transaction system in white paper. While blockchain technology provides proper transparency and security due to its encrypted form of transaction, it is perfect for peer to peer electronic transactions. The technology didn’t only stop there now it is taking up the fund-raising, education payment, and banking sector also.
Block chain process
As the blockchain technology is decentralized in nature that is it is not regulated or controlled by any party government or non-government. It works on the codes and protocols typically mathematical. So, the transaction is more transparent and secure. Transfer of virtual funds from one person to another digitally is known as a transaction. Their transaction waits for the confirmation when submitted to a public ledger. When the transaction is being processed, the wallet requires a digital signature to operate. The digital signature that is used, is in encrypted form and are called digital signature. The confirmation of the transaction takes times. All the transactions are stored in public ledger. The information stored in the public ledger is in encrypted form and different protocols are used to ensure security. The ledger calculates an accurate spendable balance for the correspondence digital wallets as well. It also ensures the authenticity and use of valid coin currency owned by the sender of each transaction. Each currency has a different hash for this ledger like in Bitcoin public ledger is called transaction block chain.
The working of block chain depends on three aspects: 1
The primary purpose of blockchain technology is to create a unique and highly secure digital identity. These identities are fully dependent on the combination of keys available private and public cryptographic keys (encrypted technology). A perfect combination of these keys forms a digital signature, For example, a combination of a sender’s private key and retriever’s public key will form a digital signature. Forming of digital signature make the transaction more secure but this is not enough the authorization to access is must. Further, it begins with a distributed network.
2. System of records
A block is created containing all the relevant information and digital signature of the user. A digital interaction emerges when a cryptographic key is combined with the digital network. The process begins with making an announcement using A’s private key and completed when attached to B’s public key.3
It is a blockchain network serving protocol. The basic goal of the protocol is to create a network that will not allow duplicate and identical currency at the same time. The type, amount and verification can be different for each blockchain. It is a matter of the blockchain’s protocol – or rules for what is and is not a valid transaction or a valid creation of a new block. The process of verification can be tailored for each blockchain. Any needed rules and incentives can be created when enough nodes arrive at a consensus on how transactions ought to be verified.
Block chain as future platform of Technology
It is said that the government currency of future period will be cryptocurrency because it works on the blockchain mechanism. As compared to the traditional method, blockchain technology is more efficient, secure and traceable. In recent times, the scenario is, where ever you will go, in a conference meeting or a trade show, blockchain initiatives are the most discussed about topics. Whether you are in retail, entertainment, real estate or any other sector blockchain implementation is the current hot topic. The benefits of blockchain in every industry are undeniable. It offers transparency, trustworthiness, and security to each transaction that is of utmost importance for any business. There are different kinds of business (B2B and B2C) which are adapting blockchain technology because it is helping them to gain momentum and also helping the startups with fundraising.
The future of blockchain technology in every industry looks bright. Many industries are introducing blockchain in their mainstream to secure their transactions and information. It is considered as the advancement of technology in the traditional system of trading.