What is Blockchain Technology?
Introduction to the World of Blockchain
The concept of blockchain technology was first introduced with an anonymous hacker or a group of hackers under the name Satoshi Nakamoto, considered to be the father of the first cryptocurrency ever, Bitcoin (BTC).
Although anonymous, Satoshi Nakamoto is a group or an individual, that left more than a valuable legacy to the world by starting out what was the very beginning of blockchain technology and the famous cryptocurrency boom.
Many people, yet unfamiliar with the concept of the blockchain, consider that this technology is nothing more than a gateway for startups to issue ICOs and raise money through sales and presales.
However, there is so much more to this evolving but advanced technology; to begin with, what is blockchain technology?
What is Blockchain Technology?
The primary and the first successful implementation of blockchain technology is actually available till this day, and it is represented in the Bitcoin platform and the way that BTC works.
Even though hundreds of different cryptocurrencies were issued after Bitcoin to represent faster, cheaper or more efficient ecosystems with a more specifically defined purpose, Bitcoin was the first successful application of blockchain technology.
But, what exactly is blockchain technology?
By definition, blockchain represents an open-source distributed ledger that is by nature decentralized, which means that there are no central authorities to run the system where information and data are being stored.
The main intention of the blockchain is to transfer value from one party to another while diminishing the middlemen from the equation, that way describing the decentralized part of blockchain technology.
How does blockchain exactly work and how can we use it?
How Does Blockchain Work and What Can We Use it For?
The main factor of blockchain supremacy most probably lies in the fact that blockchain actually represents a massive open-source ecosystem that allows a frictionless experience of transferring value and storing information, all backed up by encryption that prevents hackers from compromising data found on the chain.
Since the information found on the blockchain, whether it’d be some sort of value or your personal data, is not located in a single particular part of the blockchain-based network, data is public but also asking for verification in order to provide exclusive access to that same data.
Perhaps the most interesting thing about blockchain, also representing the driving force behind this innovative technology, is the fact that blockchain is already finding numerous applications across various industries.
Not only that blockchain allows money transfers like in the case with Bitcoin, but it also facilitates tokenization of any type of value.
With Bitcoin, the world got a chance to take a glimpse into the potential of blockchain technology as BTC users were allowed to send payments across the ledger, having the payment arrive on the other end in not more than 10 minutes, at low fees and without the interference of third parties.
From that model of basic application of blockchain, the blockchain projects that came onto the scene years later since Bitcoin was first introduced in 2009, found numerous inventive ways on how to use blockchain technology.
That is how blockchain is now able to pose as a medium for transferring any type of value, which includes even gold, vehicles, real estate, services, and products, also allowing the creation and development of decentralized applications that are becoming more attractive for developers year to year.