Understanding The Concept Of Blockchain

Blockchain is an ingenious invention which is heralding in a new era of security and prosperity. The blockchain concept comes from Satoshi Nakamoto, but very little information about this mysterious individual is available. Over the years Satoshi’s concept evolved into something huge, there are still many individuals who are unaware of this innovation and how it is shaping the future of the global economy.

Blockchain technology is considered to be the backbone of the Internet and it allows digital information to be distributed around without being copied. Blockchain was initially devised for the popular digital currency Bitcoin, but as time passes, the tech community is realizing the vast potential of this technology.

Knowing Blockchain

Bitcoin is a popular digital currency, and it is named “digital gold,” with good reason. Presently, the value of Bitcoin is roughly $5,300 USD. Blockchains are capable of making other digital value, and like the Internet, it is not necessary to know how the whole process works. Having basic information about this new concept, however, is important because even having a basic understanding of it will help you realize why the technology is considered revolutionary.

What Is Blockchain Technology?

Blockchain is basically an incorruptible digital ledger of transactions which can be programmed to record financial transactions and virtually anything of value with ease. Imagine a spreadsheet that is duplicated thousands time around a network of computers. Now imagine that this network is designed to regularly update and verify the spreadsheet. This is an easy way to understand blockchain.

Information that’s held on blockchain exists as shared data and is continuously reconciled in the database. This is an effective way of using the network with clear benefits. It is important to know that the blockchain database isn’t stored in one location – this means the kept records are easily verifiable and 100% public. There is no centralized version of this information available for a hacker to corrupt or exploit. This concept is hosted by millions from around the globe using computers simultaneously; all of the data is accessible to anyone over the Internet.

Blockchain Durability

Blockchain technology is quite similar to the Internet which has an ingrained robustness. Blockchain technology is known to store blocks of information which are identical across the network, but it can’t:

  • Be managed or controlled by any single entity
  • Has no point of failure

Since the inception of Bitcoin in 2008, it is operating in many places around the globe without significant disruption. (Note – disruptions here mean any problems related to mismanagement or hacking till date.) In simple terms,  problems arise from human error and bad intentions and not because of flaws in the fundamental technology.

Blockchain technology is similar to the Internet itself. Billions around the world are using the Internet, and it has proven itself for over 30 years. This same holds true for blockchain technology as it continues to advance and many new features are being introduced over time.

Transparent and Incorruptible

Blockchain technology lives in a state of agreement, agreement that automatically checks in every ten minutes. It is a kind of self-auditing network of digital value, reconciling every transaction that is taking place in ten-minute intervals. All of these transactions are part of the “block.”  Two important things result from this:

  • Transparency – data is fixed within the network as a whole, and it is public.
  • By altering any unit of information on the blockchain, it can’t be corrupted.

Theoretically, corruption is possible, but in reality, it’s far less likely to ever happen.  Over the years, as technology advances, many online cryptocurrency exchanges are appearing in the market. Digital currency enthusiasts can use online exchanges to buy or sell digital currencies with ease.

Online Exchanges

Bitcoin is a popular digital currency, and it is being used by many people and businesses for both online and offline transactions. Buying and selling of digital currency aris easy. Bitcoin of America is a popular cryptocurrency exchange portal where you can carry out Bitcoin exchanges with ease. Buying digital currencies is easy with Bitcoin of America. Simply register and use any currency to buy Bitcoin. Many cryptocurrency enthusiasts are using this platform to carry out transactions because it is fast and reliable. These online exchanges are playing a huge role in bringing Bitcoin to every household.