The blockchain is a really clever invention by a person or group of people known by the pseudonym, Satoshi Nakamoto. It’s since evolved into something far greater and everyone is now asking, what is Blockchain?
Simply put, blockchain allows digital information to be distributed but not copied and has created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, it has unsurprisingly been welcomed by the tech community who have now found other potential uses for the technology.
A block chain, is a growing list of records called blocks which are linked using cryptography, mathematical equations which create secret keys, which keep our data protected. Each block contains a cryptographic hash of the previous block, a timestamp and transaction data. To most people reading this, they are thinking, huh? Essentially, Blockchain is made up of digital pieces of information. Specifically, there are three parts to a block chain.
- Blocks store information about transactions, they tell companies the date, time and amount of money a client has purchased.
- Blocks store information about who is participating in transactions, a block for a client’s purchase from your business would state their “digital signature” sort of like a username. So now we have online avatars, for the real world.
- Blocks store information that distinguish them from other blocks. Each block has a unique code called a “hash” that allows us to tell it apart from every other block.
Why is Blockchain useful?
It builds trust between peer to peer networks. Imagine a bank, we know why they exist, it’s a trusted third party to transactions. Blockchain is an answer to improving B2B relationships. It allows consumers and companies to know their data is being protected. It can connect users to make direct transactions between them. The system automatically lodges the data, meaning you won’t need any third party interferences in the system, and companies can keep good track of who their customers are without having to manually input the data.
Therefore in Summary blockchain will:
- Change the way we exchange money, forever.
- Create trust between business owner and consumer.
- Enhance security and expand adaptability.