You have been hearing of Blockchain being the future of internet lately, and that’s for a good reason. The blockchain is the latest technology set to disrupt industries across the globe in the next 5 to 10 years. Many industries are using Blockchain technology to create a decentralized network of IoT devices.
So what is Blockchain?
The blockchain is a distributed ledger used to record transactions virtually across a network of computers. Imagine having a database duplicated thousands of times in different locations across the globe? It provides a safe way to record, transfer, and audit data promoting a high degree of transparency.
With a distributed digital ledger, no trusted administrator or central agency required to control the decentralized database. All transactions are publicly available and each party can verify the transactions using mathematical hash algorithms.
The decentralized network operates on peer to peer( P2P) basis meaning no central authority. The decentralized network makes it easy for parties to share data across multiple networks. Each block of data is securely stored in the digital ledger using cryptographic technique making it easier for anyone to access and verify the digital data through the internet.
A client computer node connected to a Blockchain network can validate and relay transactions. The stored data cannot be changed or altered. Different computer nodes use Blockchain technology to jointly manage the distributed databases that record Bitcoin transactions.
Why use Blockchain?
1. Blockchain technology will help in reducing cyber risks by providing a digital identity authentication through the digital ledger.
2. Use cryptographically secured digital currency to make online payments across the globe as well as reduce anti-money laundering.
3. Business will use Blockchain to create trusted trading platforms.
4. Use of smart contracts by car rental agencies to automatically record car hire services and also to record car insurance information in the visible digital ledger.
5. Create robustness and transparency in the trading environment.
6. Reduced infrastructure costs for payments across borders, security trading and regulatory compliances.
7. Provides a high degree of accountability, no missed transactions, no machine errors or human errors.
8. Enhanced security. Blockchain technology eliminates central control of data. With today’s internet security issues, everyone should come up with a measure to reduce security breaches. Blockchain technology use encryption methods to enhance the security of data. Each user has a public key with a corresponding private key to enable access to digital assets or bitcoins.
Blockchains is built from three distinct technologies;
1. The internet/ peer to peer network.
2. Private key cryptography
3. 3the blockchain protocol
Some of the industries where blockchain technology will be applied include; Banking industries to provide payments to customers, enable the connected Internet of Things devices to be monitored, crowdfunding industry to raise funds globally, the Insurance industry, in E-voting by the public, reduce the risk of cyber security as well as provide cloud storage services. The government can use blockchain to keep a national registry of persons, reduce bureaucracy and increase transparency in government operations etc.
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