Introduction
Blockchain technology has been around for a long time, but many people are only now beginning to understand how it works and what it can do. Blockchain is often associated with Bitcoin and other cryptocurrencies, but it’s much more complicated than just one application or use case. Here are some facts that will blow your mind about this powerful new technology:
Blockchain is not Bitcoin
You’ve probably heard that blockchain is the technology behind Bitcoin, but what exactly does that mean? To put it simply, blockchain is an immutable database of transactions that can be shared across a network of computers. It’s like a Google Doc where everyone has access to the same file at once and no one can make changes without everyone else seeing those changes happen in real time.
Blockchain was originally used for cryptocurrency–like Bitcoin–but it has since been adapted for use in many other applications including supply chain management and health care record keeping.
It’s decentralized
Blockchain is a decentralized database. There is no single entity that controls blockchain and all nodes on the network have a copy of the blockchain. This makes it very difficult for anyone to tamper with any of the data stored on a blockchain because they would have to change every copy at once (or almost every copy). If you think about it, this makes sense because if someone wanted to hack into an internet-connected computer system like Facebook or Twitter, they’d only need access one node–not thousands or millions of them!
It’s immutable
The blockchain is a decentralized, immutable and transparent database that can be accessed by anyone. This means that it’s not controlled by any single individual or organization. The data stored on the blockchain exists as blocks linked together in chains of transactions between users. It’s also secured by cryptography which makes it impossible for third parties to tamper with any information contained in these blocks.
The term “blockchain” refers specifically to this type of shared database–a digital ledger recording financial transactions but which can be programmed to record virtually everything of value and importance (including land titles, medical records and even votes).
It’s transparent
Blockchain is a transparent technology.
The word “transparency” is often associated with blockchains, and for good reason: it’s one of the key features of blockchain technology. A blockchain’s ability to store information in an immutable way allows you to see every transaction ever made on that network without having to rely on third parties or trust them with your data.
Transactions are quick and cheap
The speed of transactions is one of the most important aspects of any cryptocurrency. Transactions are processed in blocks, which are created every few minutes. Each block contains a set number of transactions and can be considered to be an ‘electronic checkbook’. When a block is completed, it’s added to the blockchain as proof that all transactions were legitimate and recorded correctly.
The time it takes for a transaction to be confirmed by the network depends on how many other miners are working on solving blocks at once; this rate varies depending on whether you’re using Bitcoin or Ethereum (or another altcoin). In general, though, expect confirmation within 10 minutes if you’re sending small amounts between wallets with good internet connections–and up to several hours if you’re sending larger amounts or doing so from far away from home!
Not a single point of failure
- It’s decentralized. Blockchain is a peer-to-peer network, which means that it doesn’t rely on a central server or single point of failure. Instead, its data is stored across multiple nodes (computers) in the blockchain network and updated in real time as new transactions are recorded.
- There’s no central authority controlling the network. This means that anyone can participate in maintaining the integrity of the ledger by verifying transactions and adding blocks to it–and they don’t have to ask permission from any other party before doing so!
Potential uses beyond finance
While blockchain technology is most commonly associated with finance and cryptocurrency, it has the potential to be used in a variety of other industries. For example, supply chain management can be improved by using blockchain because it offers an unalterable record of transactions and ensures that all parties are held accountable for their actions.
Similarly, voting could be made more secure and affordable through the use of distributed ledgers (blockchains) instead of traditional methods like paper ballots or electronic voting machines. By storing votes on a public ledger instead of keeping them in private servers that aren’t accessible by voters or election authorities alike, blockchain voting makes it much harder for anyone–whether they’re trying to commit fraud or simply want access to your personal information–to tamper with any individual vote counts before they reach their final destination: YOU!
Finally there’s digital identity management; one day soon maybe you’ll be able to prove who you are without carrying around any physical documents at all thanks to this new technology called blockchains!
The blockchain can be used in supply chain management, voting, and digital identities.
The blockchain can be used in supply chain management, voting, and digital identities.
In the context of this article, we’ll focus on two areas where the blockchain has been successfully implemented: supply chain management and digital identity verification.
Uses for Blockchain technology outside of cryptocurrency include decentralized applications (DApps), smart contracts, digital assets and distributed ledgers.
Outside of cryptocurrency, blockchain technology has many applications. Some of the most notable include decentralized applications (DApps), smart contracts, digital assets and distributed ledgers.
Decentralized Applications (DApps) are programs that run on a P2P network of computers rather than one central server. The code behind these apps can be open source or proprietary and they’re often built on top of existing blockchains like Bitcoin or Ethereum.
DApps are often used for things like prediction markets (Augur), sports betting (Etheroll), online games (CryptoKitties) or social media platforms where users control their own data instead of handing it over to corporations like Facebook or Twitter who sell it for profit without consent from users
There are many possible applications for blockchain technology beyond cryptocurrencies. These include smart contracts, supply chain management, digital assets, and other financial services like insurance or escrow services. Some examples include prediction markets (Augur), cloud storage (Filecoin), social media network (Steemit) and ride sharing applications ( Arcade City). Each of these applications has been developed using blockchain technology, but they do not rely on cryptocurrencies to function effectively.
Blockchain technology is a new way of storing and sharing information. It’s also a new way of making transactions, where people can exchange money with each other without an intermediary like PayPal or Venmo acting as a middleman.
There are many possible applications for blockchain technology beyond cryptocurrencies. These include smart contracts, supply chain management, digital assets and other financial services like insurance or escrow services. Some examples include prediction markets (Augur), cloud storage (Filecoin), social media network (Steemit) and ride sharing applications (Arcade City). Each of these applications has been developed using blockchain technology but they don’t rely on cryptocurrencies to function effectively
Conclusion
If you’re still not sure what the blockchain is or how it works, don’t worry. It can be difficult to wrap your head around at first because there are so many different applications for this technology. But now that we’ve gone over some of its basic features, hopefully it will be easier for you to understand how these facts might impact your life in the future!
