What is Blockchain? If you are now learning about Bitcoin, you must know about Blockchain. Blockchain, which is also called ledger, is the advanced architecture of Bitcoin that make Bitcoin popular. The blockchain is not only used for Bitcoin, but also for many technologies in present and future. Bill Gates, Richard Branson and many global financial banks are in the race of this technology. You must be curious and want to know more about Blockchain, don’t you? Let’s find out what it is in this article.
What is Blockchain?
The blockchain is a hierarchical database that allows to transfer and store information base on an encrypted system, thus, its security of information and data is super high. Blockchain technology is designed in order to avoid someone to change the data. Whenever one Bitcoin transaction is executed, the data is stored and there is no way to change it.
The blockchain is just like a ledger that notes every transaction. The updating process is executed at the same time, on every computer which is available on the network. The Blockchain architecture allows users to transact and pay directly online without any intermediate organizations (such as banks, online payment methods like PayPal), and without any monitoring organizations. The born of Bitcoin opened the revolution of e-commercial which not only fast but also low-cost and secure.
Blockchain was invented in 2008 by Satoshi Nakamoto (an unknown person or organization). The blockchain is the important part of Bitcoin and is operating automatically. The Blockchain idea has solved the problem of double spending, which is a cheating method to use one amount of money twice.
How does Blockchain work?
In the case of Bitcoin, Blockchain is working like a store that shows all of the transaction information. Following is a picture that shows how bitcoin works:
Why is Blockchain a revolution?
As mentioned above, Blockchain architecture helps to solve many problems of e-commercial payment, online payment. You can properly send some money to your friends and families from anywhere in the World without the need of intermediate organizations, without any limitations of the amount, within a short time and reasonable cost.
Many experts have predicted that the future of Blockchain is very promised due to the ability of Smart Contract. With Smart Contract, transactions and deals would be handled automatically while ensuring the personal information of both sides. Moreover, blockchain technology will be one of most influential factors to the internet. With Blockchain, almost all electrical devices would communicate equally. All of the cheating activities will not be able to happen.
At present, many big companies in the World are building their own blockchain systems. In the near future, blockchain will make a new huge trend of e-commercial.
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