BLOCKCHAIN may seem like an obscure technology to many of us right now, but research suggests that in a few years we will all be using it. But how?
BLOCKCHAIN technology is one of the concepts we hear the most when it comes to Bitcoin. So what is BLOCKCHAIN?. To explain with an example, BLOCKCHAIN can be thought of as an account book where our banking transactions are written. This technology, which is used extensively in the financial sector today, is a digital data bank where all activities are recorded. The most important features of BLOCKCHAIN are that similar to Bitcoin, there is no need for an intermediary, it is costless and has a very strong security system against fraud. For this reason, it can be used not only to keep records of financial transactions, but also to keep records of any item that has a certain value (identity information, money, valuable documents).
BLOCKCHAIN technology, which is often associated with Bitcoin, was first developed to record transactions made with the Bitcoin digital currency and share them as open source. Following the success of the system, other digital currencies and other sectors began to utilize BLOCKCHAIN technology.
Why is BLOCKCHAIN so reliable?
The BLOCKCHAIN structure allows an information or document to be shared and used by many users at the same time. For transactions and changes, all records in the system check the accuracy of the transaction using a specific algorithm.
BLOCKCHAIN’s reliability comes from the fact that it is public. So it is a transparent resource. Have you wondered how security is ensured if the blocks containing the information are open source? The concept of security here is not the invisibility of information, but its immutability. In other words, it is impossible to tamper with information committed to the BLOCKCHAIN unnoticed by others. Every transaction is digitally signed, making it virtually impossible to tamper with later. In fact, block production is not impossible in theory.
However, it is assumed that it will not be attempted because the cost would be too high. It is technically possible to manipulate a block of information, but it would require a lot of computer processing power to manipulate it. The BLOCKCHAIN structure consists of layers, and a copy of the information entries is passed to each layer. Manipulating information spread across such a vast network requires a lot of computing power. This makes this information exchange extremely difficult in practice. This assumption has been proven correct by the success and interest in BLOCKCHAIN technology.
How open is BLOCKCHAIN and how secret is it?
As with Bitcoin, the production of blocks in a BLOCKCHAIN system is called mining. The processing of information into blocks is done with special codes consisting of numbers and letters called hashes. These codes are created specifically for each piece of information, like a digital fingerprint. In this system, everyone who uses a digital wallet or cryptocurrency has a unique identity and can access the BLOCKCHAIN system. Does this system seem too open to your eyes? The information you have access to is not who transferred what to whom, but from which address or ID number to another. So, while the system is open, it is also secretive enough to ensure that those who use it are not harmed.
Can the block be interfered with?
Another security element is that BLOCKCHAIN is not connected to any center or person. Because the information is not collected in a single center, the BLOCKCHAIN system is also called a distributed or distributed system. What a distributed system means is that every transaction is sorted into blocks that are part of a chain. These blocks are linked to each other, thus preventing the intervention of a retroactive block.
Digital Disruption Profile: BLOCKCHAIN’s Radical Promise Spans Business and Society
Gartner forecasts that the business value generated by BLOCKCHAIN will grow rapidly, reaching $176 billion by 2025 and $3.1 trillion by 2030. Source: https://www.gartner.com/en/doc/3855708-digital-disruption-profile-BLOCKCHAINs-radical-promise-spans-business-and-society
And the future of BLOCKCHAIN…
BLOCKCHAIN is predicted to play a very important role in the technology of the future and therefore in our lives. Especially the electronic banking, trade and health sectors are working to create this technical infrastructure. According to the American research company Gartner, $1 billion was invested in BLOCKCHAIN technology in 2015. It is predicted that in just 5 to 10 years, this technology will be used by all of us and will be an important part of our daily lives.
Would you like to start to build your BLOCKCHAIN project? Contact Enkronos team today.