What is Blockchain?
At its core, blockchain is a shared, distributed digital ledger that provides a secure platform to everyone kinds and sizes of businesses. It facilitates the process of saving transactions and tracking assets within a business network. You can trade and find virtually anything of value in a blockchain network, reducing risk and reducing costs for all parties involved.
While any traditional database can faultlessly store data, blockchain stands apart because it’s fully decentralized. Instead of being maintained within a location by a centralized owner, multiple copies of a blockchain database are stored in several computers that are spread out across an entire network. This makes it extremely difficult to cheat or hack into the machine.
The blockchain phenomenon has certainly become mainstream and quickly making its way to nearly all sectors of society with a full suite of services and remarkable benefits. Be it the public sector, education or cryptocurrencies, blockchain has emerged as the best fit for all. Unsurprisingly, the global blockchain market size is estimated hitting $15. 1 thousand by 2024.
Who Invented Blockchain?
The technology behind blockchain was initially outlined in 1991 by W. Scott Stornetta and Stuart Haber, two highly most respected mathematicians who wanted to prepare a system where it’s virtually impossible to tamper document time stamps. In the late 1990s 區塊鏈新聞資訊, cryptographer and computer scientist Chip Szabo planned using ‘bit gold’, a blockchain meant to secure digital payments system. However, this became never implemented.
Blockchain Fundamentals
Distributed ledger technology
All parties have access to the ledger along with its record of transactions. These are only recorded once, effectively removing the copying of time and effort that is typical of conventional business networks.
Immutable records
Immutability concerns the ability of the shared blockchain ledger to stay as an unalterable history of transactions. No one can tamper with a transaction once it has been recorded in the ledger. In case of an error, it can only be reversed by adding a new transaction, and both transactions are visible.
Smart contracts
In order to speed up transactions, a program called ‘smart contract’ is stored on the blockchain and enacted automatically when established conditions are met. Smart contracts are typically used to automate the execution of an agreement so all parties are ascertained of the outcome, without time loss or the requirement for an intermediary.
How Blockchain Works
Blockchain technology works via a multistep process, which essentially occurs as follows:
An official party inputs a transaction, which is then authenticated by the system.
Each transaction is recorded as a ‘block’ of data.
The block is then delivered to every computer node in the entire network.
Authorized nodes verify the transaction and add the block to the blockchain.
The blocks create an irreparable archipelago of data as an asset moves from destination for a another or as ownership changes hands. They verify the actual time and sequence of transactions, and they link safely together to prevent any change or attachment between two existing blocks. This makes the blockchain tamper-evident, providing the key strength of immutability and builds a ledger of transactions that network members can trust.
Any update is distributed throughout the network, which tidies up and finalizes the transaction.
Why is Blockchain Important?
Now that you have a better understanding of blockchain and how it works, let’s discuss it from a business perspective since it is businesses that largely experience the benefits of this emerging technology. For the most part, blockchain isn’t easy to deal with for normal users. In most cases, it must be managed by experts. This makes it ideal for entrepreneurs and enterprises with the budget to implement the blockchain project.
So, what makes blockchain technology so enticing and lucrative? Firstly, it cuts in business costs. Remember that there is no need for intermediaries and this is a huge plus for businesses as it not only lowers expenses but also reduces the purpose of contact, thereby improving efficiency and fueling growth.
Transaction speed is likewise significantly improved. For business owners, everything comes down to efficiency, especially when they can keep their accuracy and quality in one piece. Some big brands and companies formerly shown their trust in blockchain and currently deploying it. Amazon, Alibaba, AIG, Pfizer, Microsof company, Nvidia, J. P. Morgan, PayPal, Samsung, Tencent, Unilever, and Walmart are one of those with live blockchain operations.