Blockchain Technology: The Most Formidable and Disruptive Tech in Decades
Blockchain Technology: Today, we are going to discuss some of the best features of blockchain technology and also, find out the reason why it is so useful and disruptive technology at this age. Blockchain Technology is first and foremost used for making transactions. It could be any transaction as long as it is being done over a computer network. Peer-To-Peer Network Topology is one of the network topologies that is used in blockchain technology.
For the year, people have been discussing this technology. Nobody was so serious about this technology a decade ago until Bitcoin was introduced. In 2009, the blockchain technology was introduced along with Bitcoin. When people started scrutinizing the legitimacy of Bitcoin, the name of the blockchain technology was coined to show the effectiveness of cryptocurrency concept.
The feature that makes it so disruptive is its security protocols and strategies. Cryptography is the method used in blockchain technology to provide absolute immunity from hackers. Even the world’s strongest financial systems are prone to get hacked if they are connected on a network. Anything that is connected over the network could be tracked, configured, breached and accessed.
Formidable Security Systems of Blockchain Technology
However, it is not the case with the blockchain technology. You will need to go through the tough firewall of security protocols to breach into a certain someone’s account. The only way to access someone’s account is by knowing their credentials. If you do not know the credentials, you won’t be able to recover the data. The reason why it has so strong security functions is that it uses encryption and decryption methods to secure the data.
The encryption is done through strong mathematical problems that are way too complex beyond anyone’s comprehensive capacity. It would be so tough that you might create a new cryptocurrency by the time you finish breaking the complex mathematical encryptions. Every person on the network is given a key that would be embedded with a unique data signature that would be used to authenticate the user to configure their accounts.
All the pieces of data are stored in blocks and these blocks are transmitted over a peer-to-peer network. The only difference is the size of the blocks. Each company uses its blockchain technology and the blocks in the network vary, based on their sizes. For example, when bitcoin was introduced, each block in its network were capable of transmitting data not more than 1 MB in size.
Bitcoin and Blockchain Technology
As Bitcoin started expanding its scale, the need for increasing the block size became an inevitable choice, therefore bitcoin had to create a new fork (new security protocol) that would have enhanced blocks with the capacity to hold and transmit data more than 2 MB size. When a new fork is introduced, it could be an entirely new cryptocurrency as well. That is how Bitcoin Cash was introduced in the market.
It was the result of the new fork developed by Bitcoin. There are two kinds of forks in blockchain technology – Soft Fork and Hard Fork. Many people ask What is Soft Fork and Hard Fork? Also, they ask the difference between Soft Fork and Hard Fork. Of course, it is not possible to imbibe everything about blockchain technology at one go. You have to study this extensive technology for a couple of months to acquire enough intelligence about this technology.
Only then you will be able to explore its features and specifications one by one. Smart Contracts are one of the new developments that have happened in a couple of years. It allows a group of members to come forth and oblige to a consensus agreement that contains the protocols of the way a transaction or group of transactions to operate. This innovation has saved a lot of time and it is very efficient.
Applications of Blockchain Technology
It could be deployed into a peer-to-peer network to perform any kind of digital transactions. Blockchain Technology was initially launched for handling the transactions of digital currencies or cryptocurrencies. People assume that blockchain technology could only be used for cryptocurrencies. This is a misconception. The applications of blockchain technology could be used in different sectors like healthcare, supply chain management, information technology, cryptocurrency, financial systems and much more.
There is no limit to the usage of blockchain technology. The technology is still not complete. Developers and computer engineers are still trying their best to explore new aspects of blockchain technology. Currently, they are trying to find a small hiccup in the technology. Since cryptocurrencies use a large amount of data for processing complicated mathematical problems, it makes it tougher for the nodes to store a large amount of data.
Therefore, the developers are trying to find a way to store and transmit the data on the cloud without compromising the security protocols. They already seem to find a way out of this small hindrance. Currently, many organizations are trying to embed blockchain-enabled systems in their business models to make their business operations more proficient. We will discuss more on blockchain and its applications in the next article. Till then, stay tuned to our source to get intuitive facts about cryptocurrency and blockchain.