What Is Blockchain Technology? – Blockchain is a technology that is currently taking the digital world by storm. But do you know what is blockchain technology and how can it benefit you? Let’s find out the answer below.
What Is Blockchain?
To put it simply, blockchain is a digital ledger for economic transaction. It was first developed by a person or a group called Satoshi Nakamoto for Bitcoin. However, now blockchain technology can be used to record basically everything with value.
It contains list of records that continually grows. The records are called blocks and one block is connected to each other with hash pointer. Furthermore, each block also will contain timestamp that becomes the identity of the data. Blockchain is also praised for its excellent security thanks to a technology called cryptography.
The principle of blockchain is actually pretty simple. We can see it as a spreadsheet that continuously grows and duplicated across networks. The database that contains those spreadsheets is not stored in one centralized location.
It leads to another commendable characteristic of blockchain that is decentralized. Furthermore, since the records are not kept in a centralized location, it means blockhain is publicly accessible.
The Main Benefits of Blockchain
Do you now know what is blockchain technology? If you do, let’s find out the benefits next. There is a reason why blockchain grows very rapidly, because it offers so many advantages. Even though it was first developed for Bitcoin, now the technology has touched many aspects of life and make financial transaction more secure than ever. Here are some of the most valuable benefits of blockchain technology:
- Transparent Transaction
Blockchain is hosted in so many networks and computers. It means, there is no chance that someone can hide or manipulate data recorded in blockchain because there are many people that can verify it. Everyone who wants to can see the records which makes the system to be very transparent.
- High Security
Blockchain is protected by cryptography technology which makes it extremely secure. Even though the records are publicly available, it is impossible to see the personal data of the people involved in the transaction, which means, it also ensures privacy of the users.
- Cost Saving
Blockchain is not the only technology that can ensure secure and simple transaction. However, it is certainly the most cost effective. The fact that it doesn’t require a third party to verify transactions definitely can eliminate unnecessary cost. Users can still ensuring the legitimacy of each transaction without having to hire professionals to verify the transactions.