People who want to solve the mystery of cryptocurrency but cannot fully get their minds around this occurrence, should start with studying blockchain. Everything connected to cryptocurrencies is as well connected to blockchain technology. But, what is it? Well, in simple words, blockchain can be viewed as a digital ledger where all transactions are stored. Each entry is public and verifiable. Here is an easy explanation of what blockchain actually is,
“Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.”
To people who are not related to digital technologies, it may be still difficult to understand why cryptocurrency, why blockchain, and how it all is connected. Nevertheless, nowadays, there is a problem of not enough specialists on blockchain, despite it being a very promising field. The key thing about this technology and the analogous ones is that it distributes digital information on its way to its completion. This way, the separate parts of the same transaction get approved in multiple locations and get added to the database, which are also stored in multiple locations. This makes it almost impossible to hack it because the same data storage is highly decentralized.
The Future of Blockchain
Many leading companies have already started working on the implementation of blockchain in their daily operating activities. For example, the IBM has around a thousand workers working on blockchain related projects. Many other companies have their R&D funds targeted at the development and implementation of blockchain and technologies of the kind. Why is it so important?
- Incorruptible. Monetary transactions or transactions of anything of value are recorded in a digital ledger, in which the data cannot be altered by anyone.
- Anonymous. Makes identity theft impossible.
- Does not require an intermediary. Unlike bank transactions, blockchain transactions are verified and completed by the system itself.
- Based on an algorithm. The way data is distributed, reconciled, and stored is defined by an algorithm that lies in the base of the given technology.
The above mentioned facts lead to believe that blockchain technology has all chances to revolutionize the world. With all financial transactions going through blockchain, we may not need back or other financial institutions that serve as intermediaries. We may fight corruption in the governmental bodies for all the transactions will be transparent and devoid of human interaction. This way, blockchain development is justifiably a high promising field for investment.