Blockchain technology is a concept in the field of computer science and cryptography, but it is increasingly used in finance, business and other areas of socio-economic life. For many people, this issue is not understandable. In the following article, we explain what blockchain is all about.
What is blockchain technology?
Blockchain translated from English means a chain of blocks. It is a method of organizing and storing data in consecutive blocks that together form a single virtual chain. It is therefore a kind of database, although it differs from a typical database in several features that make blockchain technology an extremely useful and unique tool.
First of all, any records entered into the transaction record are completely irreversible and therefore cannot be deleted or modified, so the data is protected from any fraud attempts. In addition, the collected data is not stored on a selected server, but in an entire network consisting of thousands of computers. Such dispersion has a double advantage. Firstly, you can always access your data, and secondly, you are not in danger of losing it, for example, due to hardware failure, cyberattacks, natural disasters or other unforeseen events.
It is also important that blockchain technology is designed to ensure transparency and transparency of records on the one hand, and to guarantee the anonymity of its users and the confidentiality of detailed data on the other. Users of distributed digital ledgers also appreciate the fact that the functioning of blockchains is completely independent of any supervisory and management institutions, including state apparatuses and the laws they create. This, among other things, makes cryptocurrencies operating on the basis of blockchain technology independent of exchange rate fluctuations or inflation.
Where are blockchains used?
The first important and widespread application of blockchain technology was the launch of the bitcoin cryptocurrency several years ago, the value of which is based on computing power. However, its use goes much further than cryptocurrencies.
Thanks to its features, guaranteeing easy accessibility, security, anonymity and confidentiality of data, stability, as well as transparency and high efficiency – blockchain is used today to record information about all kinds of transactions concluded on the Internet, as well as to store documentation, identify luxury goods or verify identity.
Thus, blockchains are used in the financial sector, the transportation industry, trade, the healthcare sector, real estate, the field of government services, energy distribution and accounting, and entertainment. It is an extremely versatile technology, which is why its potential can be used by educational institutions, stock exchanges or hospitals, as well as casinos, Internet creators or users of devices based on IoT (Internet of Things).
The future of blockchain technology
At first glance, revolutionary blockchain technology may seem complicated and difficult to implement in practice. However, thanks to its universal nature, you can easily apply it both in business and in your everyday life. Although opinions on the future of cryptocurrencies, cryptographic tokens and other solutions created on the basis of blockchain architecture are divided, there is no doubt that the technology itself will stay with us for a long time, perhaps forever. Many governmental and non-governmental organizations put a lot of money, time and energy into working on its development. So it is worth staying up to date with the topic of blockchain now.