What Is Blockchain Technology?
What is blockchain technology? Keep reading and educate yourself on the new type of internet.
A lot of us always hear "blockchain" or "blockchain technology," or if you've never heard of it, like me, it's OK to be ignorant about it. But really, what is blockchain technology?
If you're getting into the field of technology or you already are in it, but don't know anything about the blockchain and how incredible an invention it is, then you should follow through and read these details all about it. Even if you aren't in the field of technology, blockchain might come up at a point in your life — might as well learn about it now, right? So, the big question: what is blockchain technology?
What is blockchain technology?
Blockchain is seen to be one of the greatest inventions ever.
It allows digital information to be distributed, but not copied, and blockchain technology has created the backbone of a new type of internet. Yes, the new type of internet.
It was originally devised for the digital currency, Bitcoin. But now the tech community is finding other potential uses for it.
If you don’t know what Bitcoin is, it’s been called “digital gold” for a good reason. Today, the total value of the currency is about $9 billion — and blockchains can have other types of digital value. Like the internet, or even your car, you don’t need to know how blockchains work. Just having basic knowledge of this new technology shows why it’s considered revolutionary.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” Don and Alex Tapscott stated, authors of Blockchain Revolution (2016).
A Distributed Database
It’s like a spreadsheet that duplicates thousands of times across a network of computers. This network is specifically designed to update this spreadsheet regularly. Congrats! Now you know the basics about the blockchain.
All information that is being helped on a blockchain exists as a shared, continually reconciled, database. This is a different method on using the network that has obvious benefits.
Since blockchain database isn’t only stored in any single location, the records it keeps are truly public and even easily verifiable. There isn’t a centralized version of this information that exists for a hacker to corrupt.
While it’s hosted by millions of computers simultaneously, the data can easily be accessed by anyone on the internet.
Durability and Robustness
Blockchain technology has a built-in robustness — storing blocks of information that are identical across its network.
However, the blockchain cannot be controlled by a single entity and it has no single point of failure.
Since Bitcoin was invented in 2008, Bitcoin blockchain operated without significant disruption. Just like the internet itself has proven to be durable for nearly 30 years. It’s seen as a track record that bodes well for blockchain technology as it continues to be developed.
Transparent and Incorruptible
Since the blockchain network lives in a state of consensus, it’s one that automatically checks in with itself every ten minutes. It’s a kind of self-auditing ecosystem of digital value — the network reconciles every single transaction that happens in ten-minute intervals. Each transaction group is considered as a “block.”
Note that there are two important properties resulting from this. Transparency data is embedded within the network as a whole — by definition, it is public. Also, it cannot be corrupted altering any unit of information on the blockchain — meaning using a huge amount of computing power to override the entire network.
Even though it can possibly happen, it’s unlikely that it won’t. Taking control of the system to capture Bitcoins would also have the effect of destroying their value.
So, what is blockchain technology? You can now easily tell everyone else who's unfamiliar with it. Now that you know what blockchain and Bitcoin are, see what Cryptocurrency Mining is.