Using the Blockchain Technology For Faster and More Secure Transactions
The newest service to hit the Internet is Blockchain. This is a new peer-to-peer technology that allows people to trade the same things they would buy on the stock market. With Blockchain you can trade digital currencies such as gold and stocks without dealing with the complexities of brokerages. It also removes the need for an intermediary. The network that backs the transactions is called the “blockchain”. The best way to explain it is like the Internet but without the need for bandwidth, downloading and uploading information is done directly between two endpoints, one sending information and the other receiving it.
The main goal of Blockchains is to make transactions fast, efficient and cheap. The most outstanding characteristic of the ecosystem is its core strength: it is a decentralized system. This ensures that once the transaction happens, it is traceable, secured and eventually treated just like any other transaction in the stock market: if everything goes well then the investor gets his money back; if everything goes wrong then the investor will not be charged a thing.
As soon as the developers of the Blockchain project realized that their network was robust and secure enough to stand on its own, they started working on developing a new block that would implement more improvements. The developers wanted to make sure that everyone has access to the ledger and the proof. The aim was not to make profits off the backs of investors, but rather to improve the overall performance of the system. The revolutionary technology called the “blockchain” came to light.
The core objective of the Blockchain is to make it possible for people to transact without depending on brokers, banks or third-party facilitators who add extra fees, charge extra commissions and delay transactions. The Blockchain works by having miners that are users that validates transactions by themselves; in a similar way as an Internet cafe uses a “miner” to validate the transaction before proceeding. Unlike traditional networks and systems where a single participant performs all transactions, in the case of the Blockchain each transaction is performed between anonymous users on the behalf of the network. This ensures that the protocol cannot be used for illegal transactions such as money laundering or tax fraud.
One of the key characteristics of the Blockchain is immutability. The immutability of the ledger makes it impossible to modify or delete information stored on it. Miners are also continuously protected by powerful encryption protocols that make it impossible for anyone to decipher the ledger or the data stored on it. As a result, the Blockchain is highly secure and safe from hacking. Transactions are recorded on the Blockchain, not on some third party’s database, making it nearly impossible for identity theft to occur.
Another important characteristic of the Blockchain is that it uses cryptography. Cryptography is used to secure the ledger and ensure that only authorized people have access to the stored information. An example of this is the use of the private key technology, which is used in traditional banks. Private keys can only be used by the specific person that owns them. In the case of the Blockchain, the same properties apply, which greatly reduces the risks posed by storing sensitive information about client transactions in the wrong hands.
An interesting aspect about the public ledger is that it is accessible to anyone who wants to take advantage of it. Unlike most of the other methods of transaction mentioned above, it is relatively easy for ordinary internet users to access the ledger. In fact, the more applications that are being developed for the public ledger, the easier it will be for average users to perform complex transactions.
The speed at which the Blockchain grows is one of its most attractive features. On a daily basis, new blocks of transactions are created and placed into the main chain. This way, the number of blocks increases exponentially. This is why the blockchain is considered as a Distributed ledger, meaning that each computer that contributes to the chain has an equal chance of adding a new block. This is unlike most traditional ledgers, which have a specified order of release. By using the Blockchain, you can be sure that the transactions you are making are secure and fast, making it a good option when you want to make large-scale and complicated transactions instantaneously.