If you are interested in tech, even just ever so slightly interested, you will have no doubt heard about the blockchain by now. It’s a big buzzword in the tech world and some people out there even think that it might be the biggest thing since the internet burst onto the technological land many moons ago.
But wait a second – what is the blockchain exactly?! Even though the word is being passed around like there is no tomorrow, there are still quite a few people who don’t really understand the entire concept and what it actually does. Are you one of the clueless? Well, if so, you don’t really have to worry anymore. Simply read the this blog post, and you will quickly be brought right up to speed.
Here are the blockchain basics that you need to know.
It’s Decentralized
The first idea that you need to try and get your head around so that you can understand the whole concept of the blockchain is that it is decentralized. That basically means that there isn’t just one central sort of HQ. That means that everything that occurs on the blockchain is a function of the whole network. So, it’s not like a transaction occurs on a main computer and then the rest of the network have to wait to be updated with the new information or date. In a blockchain network, this would all update simultaneously. It also means that there isn’t one central authority to any network. All of the parts have an equally important role.
It’s Super Secure
As a result of being decentralized, all blockchain networks are incredibly secure. That is mainly down to the fact that any sensitive information and data shared on them is shard at every different point of the chain. It isn’t only stored at a central HQ. Because of this, it can be incredibly difficult to steal data from it. That’s because there will always be copies of it at every stage in the blockchain. However, you should try and bear in mind that a blockchain is only as secure as the infrastructure that is used to make it. If there are known vulnerabilities in a private blockchain’s infrastructure, then it could be very easy for hackers to get access to the data and take it without leaving a trace behind them.
It’s The Driving Force Of Cryptocurrencies
If you are interested in bitcoin and any other types of cryptocurrency, then you will have almost certainly heard about the blockchain. That’s largely down to the fact that cryptocurrencies wouldn’t exist without the blockchain and its related technologies. Every bitcoin that is currently in circulation is on the blockchain. This is because that every transaction that is carried out with a bitcoin is recorded in one of the chain’s “blocks”. These blocks remain in the chain so that it is always possible to see the journey that a particular coin went on. In fact, it’s not just bitcoin that operates on the blockchain. So do all the other cryptocurrencies, such as dogecoin.
You Need To Mine New Blocks
You might have heard that people “mine” to find new bitcoins. No; they aren’t physically doing any mining – it’s just the name of the process that people do online. It involves a lot of coding and trying to find the “hashes” that are used to make new bitcoins. Well, this mining process is also used in blockchain technology as it creates the new blocks that get added to the chain. Put very simply, it works like this – whenever there is a new transaction on the blockchain, the chain creates a difficult mathematical puzzle that needs to be solved. Lots of coders and programmers race to solve this puzzle and be the first one to unlock the new transaction so that it can be used on the whole of the blockchain network.
It’s Changing The Face Of Most Industries
You might be thinking now that the blockchain is only for coders and tech wizards. But that isn’t really the case. In fact, the company that you work for might be using it in its various processes; it’s just that you aren’t aware of it. As a matter of fact, blockchain is being brought into many different business sectors now and it is really changing the face of industries. Sure, some newer sectors and industries, especially the startup scene, have been utilizing initial coin offering to help fund their launch, but many traditional sectors are also embracing this new technology to help improve their standard processes and transaction. It’s currently a big deal in real estate, for example, and many experts believe that it will be extremely advantageous for the health industry as well.
It’s Great For Creatives
It’s not only tech-focused industries and IT experts who will benefit from the blockchain either. In fact, those who lead creative lifestyles, such as writer and musicians can really benefit from using the blockchain. That is because it gives them complete control over the ownership of their creations. Thanks to the blockchain, musicians, for example, don’t have to put their music out there on free platforms, such as Spotify, which generates little income for them. But, thanks to the blockchain, it’s now possible for them to release their music, while retaining full control of it.
It Helps The Internet Of Things
The blockchain is also beneficial to the Internet of Things. Not sure what the Internet of Things is? The clue is in the name – it is made up of all the devices and appliances that can be connected to the internet. The blockchain helps to improve the overall security and safety of these kinds of devices. And that means there should be no way that any hackers is able to hack into your fancy coffee machine that comes with online connectivity!
Hopefully, this blog post has answered any questions that you might have had relating to the blockchain. Some more research will make you a blockchain whizz!
