The Future of the Blockchain Technology

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In this article you will find out detailed information about the use of blockchain and the future direction of blockchain treading.

It may seem that the fundamentals of Blockchain technology are not as complicated as you expect them to be. There remains a bit of confusion about what exactly Blockchain technology is, where it’s used, who’s using it, and the way it’s developing.

What is Blockchain?

A Blockchain is a decentralized and secure database built over a secure network used to store data and relay information. Blockchains record and relay information and transactional data in blocks. Parties involved in these transactions can remain anonymous while enjoying security, transactional transparency, speed, and cost efficiency.

How Does Blockchain Work?

Data in a Blockchain gets recorded in a linear matter, with each new block within a Blockchain containing data from all previous blocks. Imagine a block to be sort of like a sheet of paper, filled from top to bottom and front to back, with a date and time, but with a long code written across the sheet.

The data within these blocks is encrypted through the use of complex cryptographic principles and security algorithms.

Before being added to a Blockchain, transactions must first pass validation. This validation is performed by miners. For their efforts, miners enjoy monetary reward in the form of cryptocurrencies, such as Bitcoin.

The data contained and relayed within a Blockchain architecture cannot be controlled by a single entity. Transactions and information stored within are immutable and transparent. Once a transaction is added, it can’t be changed, taken down, or hidden. With regard to transparency, anyone can see what was sent and when. One can assume that there are two individuals behind a Blockchain transaction, but not exactly who and why.

What Does Blockchain Solve?

Blockchain technology tackles issues related primarily to the following:

  • intermediaries
  • transparency
  • decentralization
  • trust
  • data security
  • accuracy
  • transactional freedom

Data and transactions entered into a Blockchain are immutable and unchangeable, which means that it is both accurate and secure. Once a transaction is sent, it can no longer be rescinded, and thus, there can be no smoke and mirrors when it comes to payments. As opposed to the real world, wherein parties may not trust one another, in a Blockchain architecture, the issue of trust is eliminated. Due to the decentralized and tamper-proof technological environment, transactors can place their full trust in the incorruptible and failure-proof Blockchain.

The use of Blockchain technology could end the need to rely on intermediaries as payment providers – think banks and various other financial institutions. Instead, anyone with an internet connection can create a cryptocurrency wallet, carry out borderless transactions, and handle their funds without intermediary oversight. The future of Blockchain goes a long way toward cutting transaction costs and increasing transactional speeds.

You can find out more information about the future of blockchain here.