Unless you spent last 10 years meditating in the high Himalayas or hunting new monkey species in the Amazon rainforest, the chances are that you might’ve heard about the term blockchain. 80% of bankers expect the commercial adoption of blockchain technology by 2020. But what exactly does the technology represent? Well, let’s find out.
Blockchain Security 101:
Blockchain is a digital database stored on many computers simultaneously. Every block has a timestamp as well as a link to the block before it, forming something like a chain, and hence the name blockchain. No single entity manages the database. Instead, each person in the connected network receives a copy of the complete database.
Here are some reasons why the blockchain technology is considered extremely secure.
- Old blocks are saved forever and the new data is added irreversibly. This, in turn, makes it impossible for someone to alter the data by fake transactions or other means.
- Each and every block is encrypted in such a way that all connected users can view the information, but only one person who has a unique cryptographic key can add a new block to a specific chain. In other words, no one else can manipulate your entries because only you know the key.
- Whenever new blocks are added, the change is reflected on all connected computers. This is done through cryptography, which guarantees that copies of the blockchain are synchronized on all connected computers at the same time.
Other Benefits Of The Blockchain Technology:
In addition to providing enhanced security, blockchain boosts business performance. Blockchain storage costs lower the cloud computing price by up to 50%-100%. Other significant benefits of this breakthrough technology include better transparency, privacy, time and cost efficiency, and decentralization.
Want to learn more about blockchain, its benefits, and impact? Then check out the infographic below.