Blockchain facilitates secure online transactions. The first blockchain was conceptualized by Stoshi Nakamoto in 2008. He implemented blockchain next year as basic component of digital currency Bitcoin. Blockchain is shared digital ledger. In other words its constantly updated list of records called blocks. Each block contains a hash pointer as a link to a previous block. Blockchains are resistant to modification of data. Blockchain is managed by peer to peer network. Once recorded, the data in any block cannot be altered without alteration of subsequent blocks and collusion of the network. This allows the users to verify and audit transactions inexpensively.
The idea of decentralization
Decentralized consensus has been achieved through Blockchain. This makes Blockchain suitable for recording events, medical records, identity management or transaction processing. Decentralized nature of Blockchain eliminates the risks that come with data being held centrally. Every miner in the decentralized system has copy of Blockchain. No centralized copy exists and no user is trusted then other. Transactions are broadcast to the network by using software. Every member of the community uses the same consensus mechanism to verify every transaction made through the network. Blockchain is the technology behind Bitcoin, Ethereum and all other crypto currencies.
Use of Blockchain technology
Currently there is demand of Blockchain developers. World Bank estimates that over 430$ billion were transferred in US in 2015.By using Blockchain technology there isn’t any need of third party. It ensures peer to peer secure transactions. General User Interface (GUI) has made it possible personal computing. The most common type of GUI system devised for Blockchain are known as wallet applications. People can use these applications to buy ,sell and store Bitcoin and other crypto currencies. Online transactions are connected to identity verification. In coming years it may be possible that these apps may include different identity management.
Blockchain and enhanced security
Blockchain has eliminated security risks that are usually held within central system. Computer hackers are not able to find any central points of vulnerability. we rely on usernames or password to protect online security. Blockchain uses encryption technology and base of these called public and private keys. Public key is randomly generated string of numbers and this users’ address on the Blockchain user can use this address to send and receive the payments. Private key is just like password and it gives the user access to his digital assets. Its reality that stored data on Blockchain is incorruptible.
Blockchain a new Web
Blockchain technology provides the ability to create and ensures authentication of digital information.
Blockchain enables coding of simple contracts. Smart contracts can be programmed to enable to perform simple functions.
Uber the sharing economy has proven successful use of Blockchain technology. By enabling peer to peer transactions, Blockchain has paved the way of interaction between two parties.
The most important advantage of Blockchain is decentralized file storage. Distribution of data through network eliminates the threats of hacking.