What is blockchain?
The blockchain is a digital ledger of various transactions ranging from financial ones almost everything of value that is incorruptible due to its wide distribution across the computers in the world.
In simpler words, the blockchain is a very distinct network of blocks (data) that contain the same information and cannot be altered. An attempt to do so will mean altering all the several thousand or perhaps millions of data stored in other computers from around the world. This is impossible to do and thereby guaranteeing its safety.
Blockchain is not only employed in financial transactions as a report can be sent from end A to end B using the blockchain. In this case, the report generated at the end A is duplicated all through the computer systems of the network (millions of them) and then finally transmitted to end B. If you notice the trend, it will be very hard for the data to be lost and it will also be very hard for the data to be compromised.
How does block chain exactly work?
There are three main properties that the blockchain incorporate in itself. These properties are the building blocks of blockchain tech and they form the basis of how it works. Before these properties are spelt out, a brief discussion about what this technology entails and why it should be employed will be spelt out in a few more paragraphs under this subtopic.
In times past, transactions that needed transmission from one end to another needed the sole intervention of a middle party which helps to facilitate the transmission/transaction and during the process gets a cut from the transaction as a form of commission. However, with the advent of blockchain technologies, all the acts of the middle parties are eliminated and the users can now directly perform the exchange transactions themselves without incurring any transaction costs (only infrastructural costs will then apply).
This freedom is not only limited to the ability for people to perform transactions without having to pay a middle party, it also has the importance of maintaining the integrity of the transaction as no technology in the world can corrupt a million computers at once. This is the major idea behind the technology of blockchain.
Properties that the blockchain technology employ are;
This property of the blockchain entails the ability of it not to be limited to only one center of storage. Unlike the banks that solely store the customer’s information in only one database, the blockchain receives your information and stores it across a wide range of computer storages from around the world. The idea is that a hacker cannot gain access to all computers and corrupt the information stored on the several storage systems.
The transactions carried out on blockchain technology are very transparent ones. They are seen by all the network storage but not with a private name; what this entails is that when one initiates a transaction, it won’t show all over the storage systems all over the world that ‘he/she transferred $5…’, it will only represent his/her with a public name like ‘ImEGESlfglfghdskl’ which will be peculiar to him alone. This ensures that the transaction can be tracked down on any computer in the network with that public them, should the initial computer that initiated the computer be compromised.
This third property is a reflection of the first two. This property explains that the information passed from one end to the other cannot be tampered with once entered.
Why some banks are developing a cold foot at it
With the incorporation of this transaction method into the economy, the activities of all the third parties in transaction processes will be entirely cut down and this can lead to their bankruptcy. Since the banks and other financial institutions are built on taking a small cut of the money conveyed during transactions between two parties, the incorporation of this method will largely cut down their profits and this is why some banks are developing a cold feet at it.
In conclusion, with the prospects and eventual fortunes associated with this technology, students in the schools and colleges should be exposed to at least the rudimentary level of it and tutored aright on the basics, pros and benefits of blockchain. This will promote the possibility of a world without the middle parties in the nearest future