Block Chain Technology Explained
Block chain is definitely an ingenious invention. It has evolved into something greater and the primary question each single person is asking is what block chain is all about.
Through enabling digital information to be distributed yet not copied, block chain technology made the backbone of the new kind of internet. Originally created for digital currency or popularly known as Bitcoin, the tech community is finding some potential uses for this technology.
Bitcoin is called digital gold for a good reason. The overall value of this currency is close to $9B. Block chains can make some kinds of digital value. Like internet, you do not have to know how block chain works to use it. Nevertheless, having basic knowledge of this newest technology shows why it is considered revolutionary.
Facts about Block Chain Technology
Block chain is an amazing economic transactions’ digital ledger, which can be programmed to record not only financial transactions, yet everything of value virtually.
Block Chain as Google Docs
The traditional method of sharing documents with collaboration is sending a Microsoft Word document to other recipient and asking them to make some revisions to it. The issue with the scenario is that you have to wait until getting a return copy before you can make or see some changes because you’re locked out of editing this until some people are done with it. This is how the databases work now. There are 2 owners cannot be messing with 1 record at once. This is how banks keep money transfers and balances. They lock access while they make transfers and update the other side and re-open access. Through Google Docs, both of the parties have access to the same document and the document’s single version is visible always to both of them. It’s like a shared ledger, yet it’s a shared document. Distributed parts come into play whenever sharing involves some people.
Think of the legal documents that must be used in this manner. Rather than passing them to one another, losing track of versions and not in sync with some versions, why can’t every business document becomes shared rather than transferred back and forth? There are numerous kinds of legal contracts perfect for the type of workflow. You do not require a block chain to share the documents, yet shared documents analogy is powerful.
Block Chain Robustness and Durability
The technology of block chain is like the internet in which it comes with built-in robustness. Through storing blocks of information that are the same across its network, the block chain cannot be controlled through a single entity and has not point of failure.
In year 2008, bitcoin was invented. Since then, the bitcoin block chain has operated without particular disruption. In fact, any problems that are associated with bitcoin have been due to mismanagement or hacking. In some terms, such problems come from human error and bad intention and not the flaws in the underlying concept.
The internet has proven to be very durable for thirty years. It is a track record, which bodes well for block chain technology as this continues to be developed.