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Introduction to Blockchain Technology

With a massive rise in popularity of cryptocurrencies, it is inevitable that we talk about the blockchain technology. As we all know, there’s a saying that once something goes online, it’s on the internet forever. The reason behind this is the fact that anything posted online can be copied, saved, duplicated and reused. So, with the cryptocurrencies as the new trend, what’s to prevent hackers from taking this idea to the next level? The answer to this is the blockchain technology.

With it, digital information can be distributed without the fear of it getting copied, which was exactly the thing that was needed to make this online economy into a stable ecosystem. In fact, more and more people are considering other applications of this trend. Nevertheless, before we diverge into conspiracy theories and hypotheses, here are a few things you need to know about the blockchain technology.

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Immutable information

The first thing that everyone knows is that it would be impossible to take any cryptocurrency seriously in an environment where any information can be altered. Luckily, the blockchain technology gets its name from databases called blocks, which get recorded over multiple systems, and the design is secured so that the information stored within becomes completely immutable. In other words, it remains in its form for as long as the network in question is in existence. Therefore, the chance of fraudulent behavior that would come from altering transactions and transaction-related data is reduced to a minimum.

A solution to many issues

Apart from providing us with a chance for the internet of immutable information, the blockchain technology also provides a solution to many vital issues that, up until it came to existence, seemed impossible. For starters, it creates a data which multiple clients can have a copy of, not unlike a traditional official contract. Then, it enables much more reliable data sharing inside of a single organization. Next, it makes the digital asset registry possible (it even makes it easy to verify). Finally, but most importantly, it offers its users an identity management system that they can get behind.

A rise in popularity

The incredible potential of the blockchain technology lies in the sudden rise in people’s interest. In the past, there were so few blockchain developers, startups and analysts that any potential progress was slow and unpredictable. Nowadays, you can go to any blockchain-dedicated platform like The Blockchain Review and see how the things have changed. Here, one can also see the growth of a community of blockchain developers, which is definitely an idea that shows promise to grow into something more. If nothing else, at least the sources related to this topic become more accessible, which provides those willing to try their hand in this industry with a head start.

Two sides of the coin

One of the greatest problems with blockchain technology, ironically, is also its greatest strength. You see, the data of blockchain interaction cannot be erased or altered, which means that it provides a more accurate data profiling. Nowadays, people are turning to Bitcoin and other cryptocurrencies in hopes of earning a fortune, but back in the days, the reason to use cryptocurrencies was the issue of secrecy. Cryptocurrencies could not be traced, which meant that using them was not unlike using cash. Sure, the positive aspect of this trend is the fact that the results of any data analysis become more revealing, transparent and reliable, yet, some people are still concerned by the development of these events.

A chance for a decentralized economy

Numerous economic crises in the past have shown us that the current economic system might be less sustainable than we previously thought. This is one of the reasons why so many people turned to digital currencies in the first place. Nonetheless, in order to make things official, they needed a ledger, where they can preserve logs of all these transactions. Needless to say, blockchain is nothing more than a digital ledger, where two anonymous parties can engage in a safe and reliable peer-to-peer connection by excluding the middleman (a practice that separates blockchain from PayPal or a more traditional banking system).

The rise in small contracts

In the past, in order to get a contract, you had to undergo a complex system of legal actions; nowadays, however, with the aid of the blockchain technology, every single transaction is a small contract. This creates a much safer environment for all kinds of online transactions and ensures the growth of trust and reliability of digital transactions and dealings in general.

Conclusion

At the end of the day, there’s one more question we have to ask – who will use the blockchain in the future? The answer to this question is, most likely, everyone. Currently, the heaviest use of this trend can be seen in the world of finances, seeing as how it stands to revolutionize it by securing transactions while eliminating the middleman at the same time. Needless to say, this is something that never seemed possible before.

By David

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