What is Blockchain and why is it Becoming Popular?

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.

Moreover, as the blockchain is expanding like never before because of its higher utility value, even governments are trying to enter into the research and development. The ever-growing size of the blockchain is considered by some to be a problem due to issues like storage and synchronization. However, there are solutions for such a problem as well to be developed.

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