Well you must have got into a picture about bitcoin and its prophecies .But you might still wonder about the technology behind it “Blockchain”.Then you can read the below article to strike it off from your list
What is blockchain? & is it difficult to understand?
The blockchain is an undeniably ingenious invention – the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. But since then, it has evolved into something greater, and the main question every single person is asking is: What is Blockchain?
“The practical consequence […is…] for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.” – Marc Andreessen
The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain.By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the tech community is now finding other potential uses for the technology.
Bitcoin by Blockchain
The blockchain is perhaps the main technological innovation of Bitcoin. Bitcoin isn’t regulated by a central authority. Instead, its users dictate and validate transactions when one person pays another for goods or services, eliminating the need for a third party to process or store payments. The completed transaction is publicly recorded into blocks and eventually into the blockchain, where it’s verified and relayed by other Bitcoin users. On average, a new block is appended to the blockchain every 10 minutes, through mining.
Blockchains Appearences in real world
While banks were initially hesitant to explore these technologies because of their concerns about potential fraud, they have started looking into how the blockchain might provide generous cost savings by allowing back-office settlement systems to process trades, transfers and other transactions much faster.
In fact, the first international blockchain transaction was completed on October 24, 2016. Brokered by the Commonwealth Bank of Australia and Wells Fargo & Co (WFC), the $35,000 deal involved Australian cotton trader Brighann Cotton Marketing, which purchased 88 bales cotton from its U.S. division in Texas and sent it to Qingdao, China.
Advantages of Blockchains
- Electronic ledgers are much cheaper to maintain than traditional accounting systems; the employee headcount in back offices can be greatly reduced.
- Nearly fully automated DLT systems result in far fewer errors and the elimination of repetitive confirmation steps.
- Minimizing the processing delay also means less capital being held against the risks of pending transactions.
Why its quite hard to attain/ changeover Blockchain Technology?
The roadblocks to DLT today are not just technical. The real challenge is politics, regulatory approval, and the many thousands of hours of custom software design and front and back-end programming still required to link up the new blockchain ledgers to current business networks.
Problems that still need to be addressed include:
- DLT must interface with other parts of the operational processes seamlessly. Blockchain should enable more rapid setup, training, and reduce problem resolution time. Achieving the efficiency gains must be easy enough/cheap enough for all parties involved to grasp and leverage.
- Banks are not interested in an open-source model for identity. Both banks and regulators want to maintain close control. The development of a single digital identity passport authorizer is a critical next step.
- Regulation is also critical in creating an open digital environment for commerce and financial transactions. Current physical certificates must be digitized to gain the full benefits of a fully electronic system. Other questions to be answered include: Who is responsible for maintaining and managing the blockchain? Who admits new participants to the blockchain? Who validates transactions? and who determines who sees which transactions?
The Bottom Line
Given the incredible opportunity for decentralization, blockchain technology offers the ability to create businesses and operations that are both flexible and secure. Whether companies will succeed in deploying blockchain technology to create products and services consumers will trust and adopt remains to be seen.