Today, technology is leveraging newer successes at an unbelievably fast pace. One of the latest victories in this direction is the evolution of Blockchain technology. New technologies have greatly affected the financial sector. In fact, it was originally developed for Bitcoin – a digital currency. But now, it finds its application in a number of other things as well.
Coming this far might be easy. But, does anyone know what Blockchain is?
Imagine an electronic spreadsheet, which is copied several times over a computer network. Now, imagine a computer network designed so intelligently that it regularly updates its own spreadsheets. This is an overview of Blockchain. Blockchain stores information as a shared database. In addition, these databases are continuously reconciled.
This approach has its own benefits. It does not allow the database to be stored in any one location. The records in it have genuine public attributes and can be verified very easily. Because there is no centralized version of the record, unauthorized users have no means to manipulate and tamper with data. Blockchain distributed databases are simultaneously hosted by millions of computers, making data easily accessible to almost anyone across the virtual web.
To clarify the concept or technology, it’s worth discussing the Google Docs analogy.
Google Docs Analogy for Blockchain
After the advent of eMail, the conventional way to share documents was to send a Microsoft Word document as an attachment to the recipient or recipients. Recipients will take their time to go through it, before they send back a revised copy. In this approach, one needs to wait until it receives a copy back to see the changes made to the document. This happens because the sender cannot make corrections until the recipient finishes editing and sends the document back. Contemporary databases do not allow two owners to access the same record at the same time. This is how banks maintain the balances of their clients or account holders.
Contrary to established practice, Google docs allows both parties to access the same document at the same time. Apart from that, it is also possible to view one version of the document to both at the same time. Just like a shared ledger, Google Docs also acts as a shared document. Distributed shares only become relevant when sharing involves multiple users. Blockchain technology is, in a way, an extension of this concept. However, it is important to point out here that Blockchain is not meant for sharing documents. On the contrary, this is just an analogy, which will help to have a clear idea about this cutting-edge technology.
Prominent Blockchain Features
Blockchain stores blocks of information across the network, which are identical. Based on this feature:
- Data or information cannot be controlled by one particular entity.
- There cannot be a single point of failure either.
- The data is stored in a public network, which ensures absolute transparency in the whole procedure.
- The data stored in it cannot be tampered with.
Request for Blockchain developers
As previously stated, Blockchain technology has a very high application in the world of finance and banking. According to the World Bank, more than US$430 billion of money transfers were sent through it only in 2015. Thus, Blockchain developers have a significant demand in the market.
Blockchain eliminates intermediary rewards in such monetary transactions. It was the invention of the GUI (Graphical User Interface), which made it easy for ordinary people to access computers in desktop form. Similarly, wallet applications are the most common GUI for Blockchain technology. Users use wallets to buy things they want using Bitcoin or other cryptocurrencies.