Blockchain Technology: Everything You Need to Know.
If you are reading this article, it means you are interested in understanding the basics of cryptocurrency. This is a way of taking you back to the basics. Let’s talk about blockchain technology. There are a couple of questions to consider as far as this technology is concerned.
- What is blockchain technology?
- How does it work?
- Why is blockchain technology used?
- What are the current and possible future uses of blockchain technology?
Let’s start from the beginning;
What is blockchain technology?
Blockchain technology was invented and released by a person (maybe a group of people) called Satoshi Nakomoto back in 2009. The sole purpose of this technology is to digitally and anonymously transfer payments without the need of verification from a third party. Basically, it functions by facilitating, authorizing and logging bitcoin transactions, and other cryptocurrencies. How does this piece of technology perform this function? Read on, you are about to find out.
How It Works.
I’ll need you to use your imagination a little if you want to understand how this piece of technology works. Think of blockchain as a shared google document, which is verified and highly encrypted. Now, imagine that every entry into this sheet is dependent on a relationship with its predecessor. Are you there? Yes, that’s a rough picture of how it works. In a few words, the technology is a type of database, whose entries must be confirmed and encrypted. This leads to another important question;
Why is Blockchain Technology Used?
I think the answer is pretty obvious, don’t you? Blockchain technology offers a tamper-proof log for your transactions. Its framework and fundamental code creates a secure, digital financial process. This is basically your bank without bureaucracy, time wasting and paper lifting. Now that you have a full understanding of what it is, how it works and how it’s used. There is one final question you should be curious about.
The Current and Future Uses of Blockchain Technology
The application of it is countless. Its uses range from the banking sector, the internet. It is expected that in just a couple of years from now, companies will start fleshing out their blockchain IoT solutions. Here are some of the current uses and possible future uses of blockchain technology.
- The technology has the potential of transforming part of the IoT.
- It creates solutions, which in turn helps give better insight into assets, operations and supply chain.
- It can create an advancement in how health records and other medical services store and transmit data.
- It can also help improve workflow, while at the same time reducing cost. This is usually the main aim of IoT projects.
There is something you should understand from all these, even though blockchain is a pretty useful technology (especially for the tools in the IoT arsenal), it won’t be used everywhere. However, as far as secure transactions are concerned in the cryptocurrency world, think blockchain technology.