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  • Richard Elliotby Richard Elliot
  • 2 years ago

What is a BlockChain?

A Blockchain is a digital financial book that records, and manages the financial database of different transactions made in various cryptocurrencies such as bitcoins, Etherum, Litecoin and other digital currencies. Blockchain was originally devised in by anonymous figure(s) going by Satoshi Nakamoto(S., L. 2015) to manage bitcoin but has since evolved to other currencies and platforms. A blockchain makes it possible for users to transact their details online with any hindrance. Due to digital currencies being transacted at a fast rate, there was need to make it secure, thereby the invention of blockchain to screen, store data and protect personal data. Although it does not have a regulatory system, blockchains are now being used in various digital platforms such as in passport acquisition, Identity cards, and in birth certificates to store data.

How it Works

For a person who wants to enter into the world of blockchain, a basic knowledge of this new technology would be ideal as it will act as an opening point to this complex invention. Blockchains have been structure to record almost every information that is online be it financial or personal data. Information is transferred by way of sharing. It contains a network of computer generated data that validate and send data which gets encoded on getting into the network. The recorded information is kept public hence making it easy to be located and verified by the user. This way it makes data secure and easy to access. Blockchains are made up of transactions and block records. Transaction entails exchange of information while block records have batches of authentic transactions that are read and recorded.

Security of blockchain

Storing information on the blockchain network wipes out the risk of decentralizing data. Blockchains store data across the board thereby minimizing the risks that come by information being held in a central point. This has been a point of constant criticism by financial and security experts who say that it proves difficult to scrutinize, delete or tamper with information of users. This, they say, creates a loophole for illegal activities to take place. For example, drug dealers and terrorists can use such platform to conduct and transact their activities since it is encrypted. To the users of blockchains it is a good idea that the inventors of blockchain technology made since it reduces the risk for one to access information that is considered confidential without their permission to corrupt their information.

Longevity

When one gets or wants to get into a new invention, first they will ask about its durability. They would like to know about its sustainability and what future it holds. Blockchains is a technology that was developed for the future. It was developed to long last as it has been making considerable milestone each day. Kharpal,A., (2015) This can be exemplified with the number of users enrolling daily for its use. It has been equated to the internet which has always been soaring to greater heights since its conception. Blockchains assures its users with of performance it stores duplicate information across its network thereby reducing any chance of control by a single individual.

Openness

Data stored in a blockchain is always made public so as to maintain its transparency. Data is passed through the scrutiny test every now and then. This is done every 10 minutes. This is done to harmonize the information that is stored so as to prove if it is authentic or compromised. Data cannot be easily corrupted unless a high level of computing prowess is involved making it almost impossible for one to access and alter the information in a blockchain. This goes a great extent to show how blockchains are open and secure to users who use the technology as they seal any loophole for manipulation.

Revolutionizing Operations

Blockchains were invented with the vision set for the future. Its aim was to change the ways operations were normally carried out. When blockchains were first invented most investors and institutions were skeptical about venturing into it a new technology which has not been tested and proven. The same way the digital currencies were doubted during their initial years. Technology experts took the obligation to explain and convince people that technology was authentic and was there to stay. Truly to their word, it has passed the test of time and gone a far stretch of revolutionizing how business is conducted (Higgins,S.2017). Looking at the future the blockchain has created a foundation for economic and social system of our generation.

Uncertainties about blockchains

Like all new inventions, such as bitcoins, people have questioned if the blockchains are here to stay. They question the security of it, where they doubt if the security of blockchains is authentic enough to avoid any vulnerability. They argue that there is no human-designed system that has zero defection thereby claiming the blockchain is prone to be compromised through hacking. They also argue that blockchain technology is very complex for basic comprehension. The unavailability of a regulating system such as the Central bank also creates doubts to potential users.

Conclusion

The future of human being lies on technology and this has been exhibited to the new inventions such as blockchains and bitcoins that have revolutionized the normal way of operating and taken it to a whole new level of technology. With basic knowledge of blockchains, one can plunge into this invention and keep on learning as time goes by. Blockchains are one of the most secure platforms to use as it is encrypted and leaves no room for corruption. Since its rolling out, blockchains have soared high day in day out and shown no signs of slowing thereby giving hope for future sustainability. The openness of blockchains cannot be questioned as information is spread across board and scrutinized every 10 minutes to check any malpractice activity going on. Blockchains have also not been left free from criticism especially from experts who question its vulnerability and its ability to protected data from manipulation. The fact that it lacks a central oversight body has also created doubts on potential users. Despite such skepticism, blockchains have made considerable milestone and its only time that will tell if it will be a success or not.

References

 

S., L. (2 November 2015). “Who is Satoshi Nakamoto?”. The Economist. The Economist Newspaper Limited. Archived from the original on 21 August 2016.Retrieved 19 October2017

Kharpal,A., (2015, September 12) Google and Goldman Sachs are two of the most active investors in blockchain firms: report. [Blog post]. Retrieved from https://www.cnbc.com/2017/10/18/google-goldman-sachs-investors-blockchain.html

Higgins,S.( 18 October 2017). Blockchain KYC Startup Raises $ 1.6 Million in Seed Funding. [Blog post] Retrieved from https://www.coindesk.com/blockchain-kyc-startup-raises-1-6-million-seed-funding/

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