Blockchain technology has continued to soar in popularity as enthusiasts have predicted it as the next layer of the internet. The application of blockchain technology is still in the periphery as some major institutions are already testing it for eventual mainstream application.
Imagine blockchain in its present stage as the internet of the 80s. At that time, it was strictly an environment for geeks and coders. Today, the same internet is a basic differentiator between existence and extinction. Same may apply to blockchain in the near future, hence it is expedient to have an overview of what the technology is all about.
Here are a 5 things everyone needs to know about blockchain technology:
Bitcoin, a money exchange system is the first decentralized blockchain to be created. It was invented by a person or team that is unknown to the public except for the pseudonym Satoshi Nakamoto. The Bitcoin blockchain is powered by an underlying token also known as Bitcoin. This serves as a reward for participants on the network who invest their computing power to maintain the network by verifying transactions. The process of transaction verification is called ‘mining’ and that is how new Bitcoins are created.
Every blockchain has its own network of participants that can be described as the blockchain’s community. This comprises of everyone who can have access to such blockchains and have the full rights to operate therein. Public blockchains are unrestricted and can be accessed by anyone just like the internet, while private blockchains are permissioned by the creators for its given community, like an intranet. Private blockchains are usually used by companies for internal transactions and data exchange.
One of the fundamental characteristics of blockchain technology is the fact that no individual or group of users within the network has superior control over the other. Every transaction on a blockchain is visible and verifiable by all participating members of the network in real time.
Information on the blockchain cannot be reversed or deleted. All data on the blockchain is recorded in a chronological manner and every participant has a copy of this data. Therefore, all transactions are traceable and unchangeable. This makes it such an important tool for auditing and process administration.
The concept of blockchain technology is still strange to a lot of internet users across the globe. The fact that the technology is encrypted makes it a bit confusing for a lot of newbies within the ecosystem. Users do not need to understand the intricacies of operation to use blockchain products. This is why user interfaces like dApps are being built to help regular users interpret instructions for their benefits. This is similar to using internet browsers, where you do not need to have knowledge of the backend protocol to carry out important functions.
The growth of blockchain technology is rapid, and innovations that are springing up in the ecosystem cuts across almost all major industries. Just like other disruptive technologies such as the internet and mobile technology, the blockchain wave is sweeping across, and very fast too. Getting familiar with the basics of the technology is going beyond just a matter of interest and becoming a requirement. Such resource is found in abundance on CryptoFish with unlimited information on the current developments within the ecosystem.
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