Blocks and Chains – Blockchains
Blocks and Chains – Blockchains: In today’s world there is almost nothing that is not encrypted before sharing and public use, and then decrypted upon receiving or for private use and spending. The whole crypto-thing is the current craze and it is imperative that we improve on this technology if we are to expect satisfactory gains in the near or distant future. Cryptocurrency was not-so-recently adopted worldwide and has gained huge importance. One of the main factors behind cryptocurrency is the block chain technology, also called Blockchain in short.
What it is: To the layman, blockchain is essentially a data store, and a distributed one to be precise, that serves the purpose of managing and recording and validating all possible forms of digital transactions, mainly involving cryptocurrency. Think of it as a chain that has nodes and links being continuously added on to one of its ends. It is an ever growing list of records of transactions that are termed as blocks, and these have been linked to each other and thoroughly secured using cryptographic methods.
Structure: As mentioned above the primary and basic building block of a blockchain, as the name suggests itself, is a block. It is the basic structural and functional unit of a blockchain. One of the main characteristics of a blockchain is its decentralisation and this provides the openness attribute to this system. The fact that blockchain is so open helps in the process of removing fraud cases. Thus, the use of blockchain and cryptocurrency makes these types of transactions virtually impossible to fraud.
Applications: As the basic structure of blockchain suggests one of the main applications lies in decentralised networks and their development, maintenance and their protection. This is adopted in today’s world not only by Non-profit organisations but also by Governments to safely transact with their national currencies. Smart contracts are being implemented and land registration is being carried out in a much more hassle free manner than ever before by banks and other financial companies.
Like all other rapid technological advancements that are so prominent in today’s world, it is important to note that serious problems can be posed if we do not exercise great caution in handling and dealing with stuff of this nature. Blockchain, like cryptocurrency, is of great significance considering the fact that its future potential is great, but it should be duly noted that once in the wrong or ill-equipped hands it might pose great risks and unprecedented threats.