What is Blockchain and why is it Becoming Popular?by Andrew Jones Forex Trader
Blockchain technology is becoming popular not just for cryptocurrencies but for various other financial innovations. Going by definition, a blockchain is a public ledger of all Bitcoin transactions that have ever been executed. As it constantly grows as ‘completed’ blocks are added to it with a new set of recordings, it is a never ending process.
Definitely, this is a new technology around here and not many people know about it. However, to understand the basic feature it can be told that the blocks are added to the blockchain in a linear, chronological order where each node gets a copy of the blockchain, which gets downloaded automatically upon joining the Bitcoin network.
It is also important to know what is node. Nodes are computer connected to the Bitcoin network using a client that performs the task of validating and relaying transactions. Nonetheless, as has been defined above the blockchain has complete information about the addresses and their balances right from the genesis block to the most recently completed block.
Blockchain Technology is Futuristic Solution
Bitcoin is based on blockchain as it stands as proof of all the transactions on the network it becomes transparent and visible for everyone. A block is the ‘current’ part of a blockchain which records some or all of the recent transactions, and once completed goes into the blockchain as permanent database.
Nonetheless, each time a block gets completed, a new block is generated. Thus, there are a countless number of such blocks in the blockchain. However, the blocks are not randomly placed in a blockchain; rather, they are linked to each other like a chain in proper linear, chronological order with every block containing a hash of the previous block.
Blockchain Tech can be Boon for Banking Systems
It appears clear that to use conventional banking as an analogy; the blockchain is like a full history of banking transactions. A number of Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Blocks, meanwhile, are like individual bank statements.
Created on Dec 31st 1969 18:00. Viewed 0 times.