Blockchain Technology- Simplified and Explained.

Blockchain Technology- Simplified and Explained.

18 Mar 2021
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Blockchain Technology- Simplified and Explained.

 

What is Blockchain?

With the rise of cryptocurrencies like Bitcoin, Ethereum, and others in the last few years, Blockchain technology is become the new sensation and is being used to develop various applications, and creation of cryptocurrencies, Cryptocurrencies are based on blockchain technology, which provides strong encryption software that guarantees secured transaction. An emerging technology, Blockchain uses cryptography- a decentralized network of blocks that houses a copy of the blockchain ledger. Blockchain underpins digital currency and allows digital information to be distributed in a secure manner.

Why is it called Blockchain?

A block is a record of transactions. When a transaction is completed, the transaction block gets added to the chain. Each “block” contains:

  • Transaction data: Each individual piece of data
  • Hash: a unique fingerprint for all the data stored in the block
  • Hash of the previous block’s data

How does blockchain work?

  • Blockchain works as a huge database that is shared across a network of nodes;
  • These nodes work together to verify transactions;
  • Once a transaction is verified, the transaction is placed in a block;
  • After every new transaction, new blocks are formed and placed below the previous block of transactions in order;
  • All transaction blocks are stored in a distributed database.

Simplifying Business:

Most businesses employ separate systems for sharing databases with another business. This can sometimes become difficult to execute. With blockchain technology, a single shared database can be created for both businesses which makes sharing of data much easier for them. Here are some other businesses that are employing blockchain to improve the way they function:

  • Cybersecurity
  • Education
  • Marketing & advertising
  • Supply-chain management
  • Government systems
  • Music & video sharing
  • E-commerce

Advantages of Blockchain:

  • Trust & Transparency: Trust plays a vital part in Blockchain. Blockchain technology offers a trusted and secured medium for safe transactions.
  • Cost-Effective: Blockchain is a trusted peer-to-peer network and removes the need for a central third party making it highly cost-effective.
  • Unbreakable: The confirmed transaction is stored in the form of a block on the ledger and is protected using cryptography.
  • Availability: A decentralized peer-to-peer network, there is no central point of failure in the blockchain.
  • Decentralized: One of the core advantages of blockchain technology is decentralization. Blockchain does not require a central server to store the transaction data making it a powerful solution.

Key takeaways: -

  • Blockchain offers a peer-to-peer network that removes the requirement for trusted third parties;
  • Transactions are processed quicker;
  • It is a public database and all transactions are visible on the network which prevents cyber-attacks;
  • A more secure database;
  • It has no single point of failure;
  • Blockchain can be applied to different industries, and not just for digital currencies.

With so many advantages, the possibilities blockchain offers, are endless. Blockchain possesses several other applications, with supply chain and cryptocurrencies just being a few.  This technology offers tremendous growth and over the next few years, the technology is more likely to grow.

Cryptex Technologies, based in Nagpur, is emerging as a pioneer in Blockchain technology. We provide end-to-end customized blockchain development solutions in every aspect of blockchain technology. Our team of expert developers will assist you to develop the best solutions in the competitive range. To explore more about our previous blockchain development projects, visit our website: - www.cryptextechnologies.com




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