An Introduction to the Blockchain Technology for the Beginners

These days, technology is scaling newer heights of success at an unbelievably fast pace. One of the latest triumphs in this direction is the evolution of the Blockchain technology. The new technology has greatly influenced the finance sector. In fact, it was initially developed for Bitcoin – the digital currency. But now, it finds its application in several other things as well.

Sounding this far was probably easy. But, one is yet to learn what is Blockchain?

Bitcoin Revolution Site distributed database

Imagine an electronic spreadsheet, that is copied umpteen number of times across some type of computer network. Now, imagine the computer network was created so smartly that it regularly updates the spreadsheet alone. This is a broad summary of the Blockchain. Blockchain holds information as a shared database. Moreover, this database gets reconciled continuously.

This approach has its benefits. It does not allow the database to be stored at any single location. The records inside it possess genuine public attribute and will be verified quickly. As there is no centralised version of the records, unauthorised users haven’t any means to manipulate with and corrupt the data. The Blockchain distributed database is simultaneously hosted by an incredible number of computers, making the data easily accessible to almost anyone across the virtual web.

To help make the concept or the technology clearer, it is just a good idea to go over the Google Docs analogy.

Google Docs analogy for Blockchain

After the advent of the e-mail, the conventional method of sharing documents would be to send a Microsoft Word doc as attachment to a recipient or recipients. The recipients will take their sweet time to go through it, before they send back the revised copy. In this approach, one must wait till receiving the return copy to see the changes designed to the document. This is really because the sender is locked out from making corrections till the recipient is done with the editing and sends the document back. Contemporary databases do not allow two owners access the same record as well. This is how banks maintain balances of their clients or account-holders.

As opposed to the set practice, Google docs allow both the parties to access the same document as well. Moreover, it also allows to view a single version of the document to both of them simultaneously. Just like a shared ledger, the Google Docs also acts as a shared document. The distributed part only becomes relevant once the sharing involves multiple users. The Blockchain technology is, in a way, an extension of this concept. However, it is important to explain here that the Blockchain isn’t designed to share documents. Rather, it is just an analogy, which will help to have clear-cut idea concerning this cutting-edge technology.

Salient Blockchain features

Blockchain stores blocks of information over the network, that are identical. By virtue of this feature:

The data or information cannot be controlled by any single, particular entity.
There can’t be no single failure point either.
The info is hold in a public network, which ensures absolute transparency in the entire procedure.
The data stored in it cannot be corrupted.
Demand for Blockchain developers

As mentioned earlier, Blockchain technology includes a very high application in the world of finance and banking. In line with the World Bank, a lot more than US$ 430 billion money transfers were sent through it only in 2015. Thus, Blockchain developers have significant demand in the market.

The Blockchain eliminates the payoff of the middlemen such monetary transactions. It was the invention of the GUI (Graphical INTERFACE), which facilitated the common man to access computers in form of desktops. Similarly, the wallet application may be the most typical GUI for the Blockchain technology. Users utilize the wallet to buy things they need using Bitcoin or any cryptocurrency.

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