Blockchain sounds like a complicated concept, yet it is not difficult to comprehend. Blockchain is a digital ledge in decentralised format which works like a database. Yet, unlike other databases, information in blockchain is maintained across several nodes, or say computers, that are linked in a peer-to-peer network. Simply put, blockchain is a decentralised database that stores data in a distributed network.
In fact, ledgers or bookkeeping are not something new to people, companies, and banks. Needs for bookkeeping arise once there are transactions. However, have you ever wondered how to reclaim your money, if someone has hacked into the bank account server, and changed your bank records?
Blockchain can help you to get rid of this situation perfectly. Far from common ways for bookkeeping, no centralised group is eligible for changing records in blockchain, not even banks, nor governments. As data is stored in a distributed way, blockchain has made the ledgers a public one by duplicating every single pieces of record into every participant’s ledger.
Is Blockchain Safe?
As every user keeps a full record of the ledger, that can retrieve a complete transaction history of such crypto type. This makes the ledger unchangeable with no room for cheating, unless someone can change the ledgers of all users at a time. Based on this feature, the more users are using that crypto kind, the more difficult for hackers to change the records, and so the safer for users to use that crypto kind.
In additional, blockchain has also well-utilized cryptography for data encryption. It makes danger-free transactions and verification feasible. Instead of storing transaction details as one piece of information, information is spread across various blocks to create a blockchain, which is also known as an information chain. Blockchain technology, which can be recognised as a distributed ledger technology, is thereby has become the a fundamental base for cryptocurrencies. It makes cryptos trading be possible without the interference from the third party, like banks.
Credibility and safety issue concern the public regarding innovative digital applications adoption. Blockchain with decentralised and distributed features can efficiently solve the challenges in a low cost way.