Blockchain: The future is here
August 10, 2018 5:51 am,
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is this Blockchain?
It is a digitized, decentralized, public ledger of all digital currency transactions. As it grows the completed blocks are recorded and added to keep track of all the transactions and thus permit record keeping.
It was 1st developed to keep track of Bitcoin also known as distributed ledger technology which is used in many commercial applications today. Currencies can be digitized, coded and insert practically any document into the blockchain. By doing this, it creates a record that cannot be changed and the record’s authenticity can be easily verified by the entire community using the blockchain rather than by a single centralized authority.
A block is a current part of a blockchain and records the recent transaction. Once completed it goes into the permanent database. So, each time a block is completed a new block gets generated. These are designed so that they are immutable ie cannot be deleted.
One of the most technological and important innovations of bitcoin is blockchain. On average, a new block is appended to the chain every 10 minutes, through mining. Based on the Bitcoin protocol, the chain is used to share data between the different participating nodes.
Extensions of Blockchain
A blockchain can simplify transactions since each block is in itself is a transaction and also the benefit of having an open ledger which is a distributed database system. These reasons are the driving force for bloc kchain not only in finance and stock exchange but also in fields like music, diamond industry etc.
If the entire potential of DLT is unleashed then it can be used to replace all the expensive and inefficient accounting. Also helping to save around $6 million in stock operations. They can be used to simplify business models and operations, though banks are a little hesitant to shift entirely to the blockchain.
One of the most important advantages of block chain is to remove human operation control and involvement in finance, especially across cross-border trades.
Some concerns regarding this are the security, the open source model and the regulation in creating an open digital market.