What Is Blockchain and Why Should You Care?
With the entire buzz that Bitcoin and other cryptocurrencies are making today, it’s easy to dismiss other essential aspects of the technology. And this would be an enormous mistake, especially seeing how there are many different aspects other than the mere economic use. And true to those words, one of the concepts about Bitcoin that is captivating everyone’s interest might have nothing to do with economics: the Blockchain.
While many experts and even governments are debating whether or not Bitcoin is a good thing or just another bubble like the dotcom one, there seems to be a consensus on what does work within this and other altcoins, and that is the Blockchain.
But, What Exactly Is a Blockchain?
Whenever someone mentions the term, they are referring to a distributed public ledger that is only available in a digital form. It contains the recordings of every transaction ever made using the asset based on the platform. In Bitcoin’s case, it shows every movement involving the cryptocurrency, but this can extend to any other use.
The name “Blockchain” actually explains itself; its made from a series of blocks connected to each other. Said blocks have their storage capacity and can contain a set amount of data (for example, Bitcoin’s blocks contain up to 1MB) and once this size met, other blocks will have to generate.
The Blockchain was created to be open-sourced; this means that its code is available to anyone for the purpose of security and transparency. In other words, anyone can verify the logs available in the ledger to confirm their legitimacy.
That applies to both verification and editing since anyone with the equipment and resources necessary can participate in the “mining” process, which translates into block generation and confirming operations.
All of this translates into a system that is entirely independent of any central entity and instead maintained by the community itself which ensures its transparency.
That also means that security breaches and attacks are virtually impossible, seeing how any hacker intending to modify or tamper with the registers (to send coins to their addresses) would need to attack more than half of the nodes and edit the files, which could potentially cost more than the profits made from the attack.
Why Should You Care?
The Blockchain technology has moved the world into a brand new age with the modernization of processes that used to handle with much more archaic methods that were not half as efficient and economical as a single Blockchain.
In fact, many countries like Japan are starting to test this concept for regular property registers and other implementations for government purposes. Even more so, we have examples like Estonia, who completely overhauled their capacities to a Blockchain register so they could make everything work faster and more comfortable for both their citizens and offices.
Many banks have also joined this initiative, painting a future picture where Blockchain platforms are the norm for any company or state.