What is Blockchain Technology? Well, let’s begin by defining the term. The term “blockchain” is short for “chain network.” A “chain” in this context refers to the large network of computer networks and technology which are necessary for the efficient transfer of digital information.
It was Vitalik Buterin and his associates who first conceptualized what is actually meant by “blockchain technology.” Their goal was to design a method by which digital currencies could be secured without the need for a third party intermediary. In the process, they realized that this would make the system much more open to real world use, as only the two parties involved would have the ability to transact and the ledger itself would be publicly viewable by anyone. And with this vision in mind, Buterin and associates came up with the idea of what is now commonly known as ” decentralization.” Decentralization involves the development of online forms of consensus.
There are three distinct forms of decentralized ledgers. The most well-known is called the Open Ledger Protocol (OLP). This ledger is maintained and operated primarily online. The second form is called the Corda Ledger and is used in tandem with the OLP system. The third kind of ledger used in conjunction with the OLP system is called the Mist Protocol and is used in ZaaZoo.
So, what is Blockchain Technology? It is really the evolutionary development of a new technology which can be applied to many different kinds of block chains to enable users to conduct secure and confidential transactions. The most common example of a revolutionary system which utilizes this technology is the distributed ledger software, called the Hyperledger. Distributed ledger technology provides a number of advantages for its users and is becoming increasingly popular with the increasing demand for more secure, transparent and efficient online transactions.
Distributed ledger technology provides users with the ability to securely share documents and work resources across multiple network nodes. No single server is responsible for maintaining the integrity of the entire chain. This means that there is no centralization of trust or control. In fact, it is impossible to hack into the underlying chain because if such a thing happened, all the blocks would have been erased, including the one that links the latest block to the previous block… which defeats the purpose!
Another example of the use ofblockchain technology is the medical records industry. Medical records are very large in scale and traditionally, they have been stored in single file rooms. However, in an age of technology, it is now possible to create massive amounts of data and then send this data across the Internet. By doing this, records can be obtained from any part of the world at any time and from any device, even a phone.
One emerging technology that works closely with the concept of distributed ledger is the crowdsourced approach. Crowdsourcing has been used in many things over the years and this includes the development of Wikipedia, sites such as the White House website and the New York Times website. It is essentially an approach where many people contribute their ideas and also their time, which is then used to enhance the quality of content on the site. The end result is a completely digital product that can reach millions of people around the world. This is similar to what is done with a traditional market place where many things are bought and sold in real time for a profit.
There are many use cases of what is called a distributed ledger. These include secure real-time transactions, real-time clearing and payment channels, secure offshore money transfer and identity verification among many others. It will be interesting to see the future of how this new technology comes to be applied in these use cases. In the meantime we can enjoy what is known as the true value of a decentralized ledger that runs without a middleman, what is known as peer-to-peer lending and what is known as a digital currency.