What is Blockchain?
The world of the 21st century has seen the revolutionary development of technology in the field of finance where blockchain technology is the name of the game.
Basically, blockchain is a public ledger or database that can process loads of data and transaction records. Servers or nodes control the storage of data into small pieces of network known as the ‘blocks’.
Every registered user and device can see and use the blockchain network at any time, making it both transparent and decentralized at the same time. The input data is encrypted onto the ledgers, so it is impossible to manipulate any data entry. Any transaction process is performed only after all the conditions have been met by both parties. Every transaction process is automated by the system which makes the transactions very fast and easy.
One of the key features of the blockchain system is that it can provide anonymity for the users. Each user account is represented by a private key. The transaction occurs between two private keys, so the identity of the users remain anonymous. It also eliminates third-party validation protocol which used in traditional transaction systems like bank transfer. The total system is based on Proof of Work protocol which ensures automated information management without any duplication.
Blockchain also includes a feature known as “Smart Contract.” A smart a contract is programmed to apply a set of conditions upon a transaction. Once all the conditions are met, the smart contract executes the transactions. This is a unique feature that can be used in several value transactions, such as fund transfer and asset holdings.
It reduces the need for paperwork and chances of frauds or scams.