What is the meaning of the word “blockchain”? It is an internet term for a network of ledgers. It consists of a group of computer networks that is used to keep track of the details of transaction transactions in the distributed ledger, called the block chain. The major component in the block chain is the peer-to-peer technology (P2P). Blockchain technology is used in order to facilitate the transfer of money and other financial services. There are many benefits and advantages of using the block chain, including its lower costs and speed.
The term “blockchain” comes from the Greek word which means “chain.” The main purpose of this technological innovation is to facilitate the exchange of money, under the form of digital certificates, such as debit cards, credit cards, or online account numbers. Transactions are grouped together based on their corresponding balances in the ledger. In a way, this ledger acts like a chain. Blockchain explorers make use of this technology in order to discover the system’s heartbeat by following the path of each transaction through the ledger.
Unlike traditional ledgers, transactions in theblockchain do not rely on a central authority. Neither does the ledger incorporate any sort of public key infrastructure (PKI). Instead, transactions are protected using what is called a decentralized authorization process, which ensures that only authorized parties have the ability to transact with the system. This form of decentralized control over transactions is what makes theblockchain such an extraordinary breakthrough.
The major benefit of theblockchain is that it removes the need for third-party authentication and tamper evidence. Transactions are protected thanks to the cryptography that goes into the making of blockchains. Transactions are also protected thanks to what is known as “Byzantine Resolvents” – a special system that guarantees the integrity and validity of the ledger. In short, if you wish to execute a transaction in theblockchain, you need to ensure that it is proceeding according to the specification and protocol of the particular network that is processing the transaction. There is no risk of non-transactions being processed.
Unlike traditional currencies, there is no central authority in theblockchain. In fact, it is not even necessary to have one. All that is required is for a computer program to perform the role of a central authority – which it can do by enforcing the enforceable transactions through its own hash algorithm. Unlike most cryptosystems that rely on a specific, confidential key or public key infrastructure, in theblockchain every computer performs transactions with the permission of the owner of the computer system. Transactions are not limited or restricted to a certain range of currencies.
There is a good reason why you should consider theblockchain technology. With it, you gain privacy, speed, a global scale, immutability, censorship resistance, decentralization, accountability, and financial versatility. If you are planning on using cryptosystems like the Counterparty, Shape Constants, Waves, Digital Wallet, Maidsafe, Jepur, Abra, Forex MegaDroid etc, then you definitely need to look into theblockchain. You will surely realize the many advantages of this new technology that you never even thought about before. So what are you waiting for?
