Blockchain: An overview
Technology is making leaps and bounds in today’s online era. We see more and more people are getting hooked onto the internet like never before. It plays a massive role in everyone’s day-to-day life. These days most transactions occur online. The stone-age method of direct cash transactions is slowly fading away. Data protection has, therefore, become one of the customer’s primary concerns.
Most customers use net banking or an equivalent online app option to transfer money for their transactions. Sometimes, the process turns out to be agonizing for the customers. Problems like technical issues with the bank transfer limitations, or even the possibility of the account getting hacked are likely.
Today, user transparency is the need of the hour. Hence, the solution comes in the form of cryptocurrency and is making serious headlines.
Cryptocurrency: The New Age Transaction Revelation
A form of virtual or digital currency is known as cryptocurrency. Cryptocurrency is here because of the technology known as the blockchain. Among the different cryptocurrencies in existence, Bitcoin is the supreme leader. Today, cryptocurrency has attained a massive following. Also, there is a lot of hype going on about this topic.
What is it?
Now let’s dig deep into a blockchain. In layman’s terms, a blockchain is a chain of blocks containing information. It works as a distributed ledger, open to all. What makes it interesting? The answer is its properties; once data is inside a blockchain, it is difficult to alter the data.
A block contains three components: Data, hash, and hash of the previous block. Data placed within a block depends on the blockchain. Bitcoin blockchain holds data like transaction details: the sender, receiver, and the number of coins for the transaction.
A Hash is like a fingerprint, and like a fingerprint, it is distinctive. You can identify a block and the data stored in it with the help of a hash. While you create a block, you also create a hash alongside. As a result, the tiniest change made to a block will affect the hash. Also, it will notify you if the data is altered.
Now comes the hash of the previous block. It creates a train of blocks in order, thus making it unique and ensures instant data protection.
Advantages of BlockChain
- Counterfeiting is merely nonexistent in cryptocurrency.
- Cryptocurrency does not require a central authority such as a bank.
- Intricate and powerful algorithms are the backbone of the technology, which does not let hackers open a window to climb in easily.
Blockchain In Today’s World
Just like any other technology, blockchain is also continually developing. One of the major aspects of it is user transparency for both individuals and companies. Because of Blockchain, one can store highly sensitive data and reduce the risk of hacking or alteration.