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In these days of ransomware attacks, Blockchain is one of the most talked about technology. It is said that it has the potential to disrupt the digital industry in a big way. So guys, did you know that what blockchain is and why it is gaining popularity?
The blockchain is a distributed secure storage spread across a network which is open source. It is transparent to the public and the stored data cannot be deleted. Moreover, it is immovable and is not controlled by any central authority.
If we dive in deep then we will find that blockchain, is a ledger of records arranged in batches known as blocks. These blocks have cryptographic links which validate one another. Also, each block identifies and reference the previous block by a hash function.
Reasons for its popularity:
As we all know that getting popularity in this cut throat world is as difficult as getting a pearl from the sea. So how this technology has gained so much popularity?
The main reason is acceptance of Bitcoin’s in the market, which has made blockchain technology popular. It has been accepted as a secure form of transferring value or information. It cannot be tampered with, so it has become a good option for making payment. It has also removed the middleman as the user can interact with the ledger directly. Above all, there is no money lost in transferring the transaction.
Forbes is a global media company with its focus on business, investing, technology, entrepreneurship, leadership says that the popularity of blockchain is largely due to the following reasons:
- Blockchain validates and records all transactions making it not only reliable but also secure as a public ledger system.
- Mining process authorizes all transactions, which makes them irreversible and prevents them from being hacked.
- There is no requirement of a third party or central authority for making transactions.
Several big names in the financial world like Deutsche Bank, Citibank, US Federal Reserve and NASDAQ are exploring the use at their innovation labs.
How it Works:
The Blockchain runs on millions of computers across the world. Moreover, the technology is transparent and does not require any intermediator to settle transactions as it runs on mathematical functions and code. The transactions made through this technology are tamper-proof and irreversible.
The methodology and openness of Blockchain technology have made it the technology of the hour. It is said that the way it is gaining popularity it has the potential to affect the way, financial transactions are being carried out in the back offices of the traditional banking and financial institutions. Many startups and financial technologies have either already started or eyeing to invest heavily in blockchain technology as they see the future it holds.
Moreover, transparency and security are the two major advantages of this technology. It looks that soon the common people and even the governments will accept the advantages of blockchain technology in their daily functions.