Have you ever wondered why so many people put their trust in cryptocurrencies such as Bitcoin and why its value soared to $19,000 during its peak? This is thanks to an encryption technology known as “blockchain” which works as a digital ledger for accounts. This, in turn, assures individuals and companies that nothing deceitful is taking place, hence, gaining their trust. For many, even the smallest things in life require trust such as a doctor’s advice or buying auto parts based on some review. It is nice to be able to carry out an activity knowing that there is no underlying deceit.
Thanks to blockchain, the technology companies such as IBM, Intel and Microsoft are offering this encryption tool to help promote businesses. Not to mention some non-technologically based companies namely Walmart, Visa and Nasdaq are also engaging in this activity which is a sign of progress. This is necessary as the world needs the ability to trust if we want to make strides in new technological advances. Imagine if we were to incorporate blockchain into things such as voting, insurance payments, identity verifications, and picture rendering. These are activities that need twice the attention to ensure everything is accurate because the information being dealt with is rather vital and confidential.
How Do Blockchains Work?
Blockchains record unchanging records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data, also called a block, are secured and bound to each other using cryptographic principles, called a chain. Why are blockchains safe and reliable you may ask? One party initiates the transaction process by creating a block. This block is verified by millions of computers distributed around the internet. The verified block is then added to a chain, which is stored across the internet, creating not just a unique record, but a unique record with a unique history.
This means that all data collected is one of a kind and storing different information compared to another, so there can never be a duplicate. Falsifying a single record would mean falsifying the entire chain thus destroying the trust that has been placed into this encryption. Fortunately, that is virtually impossible. Bitcoin uses this model for monetary transactions, but it can be deployed in many other ways. Hence why Bitcoin was able to be so valuable during its peak of popularity.
Blockchains are broken down to a science as it is impertinent that the identity of people and devices remain confidential. This is where cryptography plays a part as it is a mathematical method of doing just that. Hackers always seem to find a way to illegally access your confidential information when you least expect it. For instance, there is always a possibility of them gaining access to your credit card information when you use it online. To remedy this, one digital key ensures only you can enter a transaction to the blockchain involving your assets, and another digital key lets someone else confirm that it was you who added the transaction.
Is Everyone on Board with Blockchain?
It is quite interesting to consider why more people aren’t using blockchain if it is supposedly the savior of technology and promotes everlasting trust. With millions of dollars pumped into this idea, it is intriguing to think why many more people have never heard of this process before. Over inflated expectations are nothing new to the tech industry, though, and there are enough big names that can tell you that blockchain is just all talk, no action. It is evident that blockchain is not perfect but that can be said for every technological development. Adjustments can be made if necessary and the important thing is that blockchain is better than what is available now. If it is better, then naturally, we ought to use it. Companies such as Nasdaq and Goldman Sachs support blockchain as they are aware that changes have to be made if any issues arise.
Blockchain is a highly valuable encryption method that, if taken away would be detrimental to society. Even though some people don’t support it, there are those who do and it will only improve if given the chance.
