Blockchain may have been mentioned in your news feed. This concept is still new to many, but you don’t need to be scared. This is because the idea itself is not new. In fact, it’s been around since 2021. So what is it all about?
The main purpose of the Blockchain concept refers to the implementation of distributed ledger tech (DLT). What does this imply? It simply means the latest financial transaction recording technology that uses peer–to-peer technology to allow real-time transactions. Although it originated on the Internet, the concept has spread to other areas, such as finance, software, and real estate.
Vitalik Buterin is one of the founders and leaders of the Blockchain project. This is basically a digital ledger that functions like the original internet, but is less fragile than the webbed Internet. The distributed ledger records transactions. This ensures that all parties to the transaction have the latest information at all times, and that no one can alter them. Transactions are secure and can’t be reversed hence the need to use the distributed ledger.
Apart from ledger transactions, the Blockchain also includes smart contracts, a sort of virtual machine or a computer program that can be programmed to carry out certain tasks. The ICO platform allows users to create smart contract functions such as collateral exchange, settlement management, and other transactions. Blockchains work by creating a virtual machine that allows for the transfer of currencies or other monetary values. This concept goes beyond currencies. Financial instruments like bonds, stocks and commodities are also being transferred and recorded using the Blockchain technology.
Without the consent of an individual or organization, access to their personal information and data is not possible. This is the very essence and essential feature of Blockchain technology. Blockchain transactions are encrypted, and the identity of the transactional users is hidden. Transactions on the blockchain are virtually secure and risk-free.
Blockchain transactions are independent of any third party, unlike public ledgers. Hence there is no chance of any unwanted transaction and no possibility of any theft. The public ledgers, however, are vulnerable to hackers and can be tapped by anyone with your financial information. Blockchain transactions are transparent. They are managed by a group of users who are susceptible to being infected with malware. Hence the chances of hacking and phishing are very much reduced and if your digital ledger is hosted by a renowned institution, then you can be rest assured that your data is absolutely safe and secure.
As people are more aware of the potential benefits of Blockchain technology, their popularity has risen dramatically. Many financial institutions have adopted the technology to improve their internal processes. Financial institutions, such as banks, hedge funds, asset mangers, and other financial institutions, are using Blockchain technology for their internal applications and successfully integrating it into the systems. Some well-known companies like Visa, MasterCard, PayPal and others are already adopting the concept of the Cryptocurrency for internal uses. It is clear that Blockchain usage is growing as more people realize its benefits and the need for it.
Experts in Computer Science and Math are slowly accepting the concept of the Cryptocurency. Numerous renowned universities are studying the implications for their academic purposes. Developers are creating prototypes for the next generation cryptocurrencies, like the Maidsafe (and Counterpart) due to growing demand. The future of the future may be bright as more people get involved in the concept and the competition increases and grows stronger between different cryptospace participants.
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