What Is Blockchain?by Andrew Jones Forex Trader
The blockchain technology is impressing the people around the world as it is being used for various purposes from helping out create digital currencies to keeping the records safe and accessible for all. What is blockchain is simple to answer, as it is a data structure that makes it possible to create a digital ledger of transactions and share it among a distributed network of computers.
The blockchain uses cryptography to allow each participant on the network to manipulate the ledger in a secure way without the need for a central authority. Thus, it is quite democratic not just in access but also empowers everyone to participate. The experts believe that blockchain technology can revolutionize sharing and transparency regime to a great extent.
Blockchain Technology has Revolutionary Impact on Financial technology
Answering the question what is blockchain technology, experts say that once a block of data is recorded on the blockchain ledger, it’s extremely difficult to change or remove. Nonetheless, when someone wants to add to it, participants in the network, all of which have copies of the existing blockchain, run algorithms to evaluate and verify the proposed transaction.
The transparency and accessibility are the two features that make blockchain a preferred technology. For instance, if a majority of nodes agree that the transaction looks valid i.e. identifying information matches the blockchain’s history, the new transaction will be approved and a new block added to the chain.
Why Blockchain is Becoming Popular?
As has been mentioned above, blockchain technology can revolutionize the financial technology it is important to understand that known by many as the technology underpinning the Bitcoin digital currency; it has acquired a new identity in the enterprise. This is all set to challenge the existing financial technology and bring the new one that is empowering.
Needless to say at a time when companies face new challenges in data management and security, blockchain is emerging as a way to let companies make and verify transactions on a network instantaneously without a central authority.There are different blockchain configurations that use different consensus mechanisms.
The decision to choose the blockchain configuration depends on the type and size of the network and the use case of a particular company. The Bitcoin blockchain is public i.e. anyone can participate and contribute to the ledger and as has been mentioned above, it is the most democratic model for financial inclusion.
Created on Dec 31st 1969 18:00. Viewed 0 times.
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