Blockchain Technology

We might not realize it but Blockchain technology is practically becoming the backbone of the digital world. Initially it was first implemented for digital currency such as bitcoin. However, considering the current market value of the currency, one can surely assert its success and now new techniques are being devised that can make use of this blockchain technology. A blockchain can be compared to a ledger, only this is digital and it keeps a record of all the transactions taking place whether they are of value or not. The information is distributed over a number of computers known as nodes over and over again and the program makes sure to constantly update this digital ledger. This is what the basic of a blockchain is.

The biggest advantage of a blockchain technology is that it is accessible to all and thus there is no chance of corruption. In simpler terms, the same version of a document is available for all to see over millions of computers. Thus, there is no chance of a single person trying to manipulate the information before passing on from one person to another. The changes made or transactions done are done through a completely transparent channel in front of millions of people having access to the internet and that leaves no room for misconduct. Imagine if all the legal documents and transactions could be done that way. Any foul play would automatically be caught red handed.

The system is secure and since it is not controlled by a single person, the chances of the network being hacked into are very slim. A huge amount of power would be required to wipe out the entire network due to its spread across the globe. Moreover, the digital information is embedded into the network and is completely transparent, which essentially means it is public and the large scale hacking and corrupting the system seems theoretical and the practical implication of it is highly unlikely. The adaptations of this technology are numerous now and the market is ever increasing. For instance, cryptocurrency is just one application of the technology and today there are nearly 1500 cryptocurrencies in the market besides bitcoin.

I wouldn’t blame you if you still had doubts about the aspect of blockchain technology as it does have its disadvantages. The major one is that the cryptocurrency associated with it is volatile and the fact that it physically does not exist. An important issue is that the services and applications associated with blockchain technology do not exist in the physical realm of the world and that makes them extremely volatile. These are largely dependent on the world market and there can be huge spikes and drops in the prices which make people vary of such investments. The anonymity of the users and the people behind it makes it relatively easy to wipe out others’ money and especially the ones who are not tech savvy. Those who are not the computer geeks might find the concept of blockchain technology a bit hard to understand and thus rely on the exchange companies who act as middle men. The involvement of these middle men poses a risk to the money and the cryptocurrency of the people as well and thus taking this entire investment and idea down the drain.

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