What is Blockchain Technology? - Tips&Tricks


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Tuesday, 7 November 2017

What is Blockchain Technology?

The Blockchain or block chain technology was originally designed as an accounting method for virtual currency. It uses the distributed ledger technology. It is also being used in a number of commercial applications.

For now, it’s used to verify the transactions made with digital currencies as it a digitized and decentralized public ledger of the transactions of the crypto-currency.

What is Blockchain Technology

But, it can also be designed, coded and inserted in practically any document. The record generated by this method cannot be changed and, its authenticity is confirmed by the community using the block chain.

What Makes it to be known as Block Chain?

In the block chain technology, a block is the current part of a block chain which can record some or all recent transactions. When it’s done, it goes into a permanent database known as the block chain. Every time, a block is complete, a new block is generated which then becomes the part of the chain having other blocks.  

There are countless blocks that are created and linked to each other in a proper, linear, and chronological order as they are in chain. This is how the name block chain came into existence.

In every block has the hash of the previous block.

Also, block chain has the full information about a variety of user addresses along with their balances. The information is recorded right from the time when a block comes into existence to its completion in the recent time.

Blockchain was designed to record the transactions so that they cannot be deleted.

Each of the blocks is added through cryptography which means they are meddle-proof. Meddle-proof information can be distributed but cannot be copied.

Blockchains and Bitcoins

As we know, it’s Bitcoin because of which the block chain technology came into existence. But Bitcoin is not regulated by a central authority. The transactions of Bitcoin are dictated and validated by users.

This approach just eliminates the need of any third-party payment transaction service providers.

When a transaction is complete, it’s recorded publically in blocks and then transferred to the block chain.

This information is relayed by other Bitcoin users. As of an average, a new block is appended to the block chain in every 10 minutes.

The block chain technology is based on the Bitcoin protocol. It shares databases with all nodes participating in a system.

When someone joins the network, the connected computer receives a copy of block chain containing the proofs of all transactions ever executed. 

Applications of Blockchains

Block chain can contain the complete history of transactions made by a financial institution and as mentioned above, each block is like an individual bank statement.

The block chain technology isn’t only attracting banks and financial institution like stock exchange and insurance companies but companies engaged in the fields of music, diamonds and Internet of Things are also showing their interests in this technology.

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Other applications include voting systems, weapon or vehicle registration, medical records and confirming the ownership of antiquities and various sorts of art works.

This is a Guest Post by James, You Can Also Write for Us

Author Bio :- James Stewart is a digital marketing expert in Mobilmindz, a prominent mobile app development company which provides Android and iOS app development  services across the global. He loves to write on latest mobile trends, mobile technologies, startups and enterprises. 

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