There is no question about it that blockchain is seen as an ingenious invention and the brainchild of a group of individuals, referred to as a pseudonym, called Satoshi Nakamoto.
Cryptocurrency trading platforms such as https://rubix.io/ regard blockchain as peer-to-peer topology that allows the storage of data on thousands of servers, while it lets people on the network view anyone else's entries live. That makes it very challenging for any user to control the network.
Essentially, blockchain technology formed the backbone of a new version of the Internet. It was initially designed for digital currencies such as Bitcoin.
However, the tech world found other potential used for it.
Is it any wonder that Bitcoin has been termed as "digital gold," seeing that its total value recently topped $112 billion.
Can you picture a spreadsheet that has been duplicated countless times across many computers? Now imagine the network is made in such a way that it updates itself regularly. This is pretty much how blockchain technology works.
Any information here exists as a shared and reconciled database. There are obvious benefits attached to the network. The data of the blockchain isn't kept in a single location, meaning the records are made public and is verifiable. Also, you will find no centralized version of it. As a result, no hackers can corrupt the information that is being hosted by millions of PCs at the same time where the data can be accessed by anyone.
It is the kind of technology that one can only update once consensus was reached between different parties of the system. One data gets submitted it cannot be removed again. You write it once, which makes it verifiable and an auditable record of every transaction made.
The thing is with blockchain technology, every page within the ledger or the transactions made forms a block. The block has an impact on the next one or page utilizing cryptographic hashing. What it means is that once a block is completed, it will create a unique and secure code that ties into the next block or page, thereby forming a chain of blocks or blockchain.
Interestingly, the Ethereum blockchain, gained much traction as it made way for new avenues of cross-border monetary exchanges.
Blockchain can be regarded as an architectural principle in that it serves as a store of records that would:
● Secure and encrypt various transactions cryptographically.
● Write once, but append-only.
● Distributed and wholly or partially replicated.
● Decentralized, in its purest form.
One cannot say that any one system is unhackable. Having said that, blockchain technology is regarded as one of the most secure nowadays.
Before one can move something of value over the blockchain, the nodes must agree to it that the transaction is valid, meaning no one can make noise over whether a transaction took place or not. If an entity wants to hack it, they cannot just hack one system like it would be if it were a bank. They'd have to hack into every computer on the network. This makes it extremely challenging to even think of doing it.
Did you know that the computing resources required for blockchains would harness up to 10 if not 100 times more than all of Google's serving farms put together?
We are not staring ourselves blind against the challenges that need to be addressed during this early-stage technology, of which some would be:
- Privacy versus transparency - Preserving data privacy and confidentiality are necessary for success while inherent transparency can be as much of a curse as a blessing.
- Exception management versus immutability - Technically, complete immutability does not exist. Know that there are circumstances when full immutability is not even desired.
- Smarter contracts - Smart contracts are not seen as smart neither are they contract in the legal sense of the word. It is just about business process automation.
Similar to any type of emerging technology, blockchain technology would have to face numerous barriers and challenges to adoption.
How are these blocks secured?
Through a linked list structure where each block consisting of a hash that in turn is challenging to mine. Speaking about miners. Were you aware of the fact that miners require a more powerful hardware system as the difficulty level increases?
There is a lot more than meets the eye to truly breakthrough blockchain. Top crypto to USD exchange programs will have their own measures of security in place to prevent possible hacking so investors can sleep peacefully.
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