Updated: Mar 5, 2020
By Michael Mburu
The invention of blockchain was revolutionary. Satoshi Nakamoto is the man who worked tirelessly to come up with the invention which is arguably one of the greatest inventions in modern history. But how many people would explain with clarity what blockchain is? Will a common man on the streets know or perhaps understand what a blockchain is?
Blockchain technology has revolutionized the concept of digital information distribution. The technology is mainly applied in digital currency as well in bitcoins. But recently it has been diversified to cover other areas as it forms the foundation of the new internet.
A blockchain is a series of rigid set of data that is managed by a network of computers which lack the ownership of the entities. “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” (Don & Alex Tapscott, authors Blockchain Revolution, 2016). All the data blocks are safely bound to each other using cryptographic technology to ensure safety.
There is significant democracy in blockchain technology as there is no central authority. Everyone is free to access and see the information as it’s shared as a rigid ledger. Transparency is paramount in blockchain and everyone is held accountable for their individual actions.
A blockchain has an infrastructural cost but lacks a transaction cost. Generally, blockchain transfers information from a point to another through a safe and automated system. The process begins with the creation of a blockchain which is then verified by the many computers in the net. Upon verification, the block is added to a chain found in the net to create a unique record and history. The chain is considered safe as it’s virtually impossible to compromise. For one to compromise the system, they are required to create a false record which would in turn falsify the entire chain. This model is used by Bitcoin to execute monetary transactions.
Information in bitcoin database is continually reconciled. The information in the data base is public and thus can be verified. There no centralized storage of the data for any hacker to compromise. This has made blockchain technology very popular in modern technology applications globally.
Blockchain is transparent, decentralized and immutable. This makes it very beneficial and it has become a real threat to other technological innovations. It’s simple to use, secure and you don’t even need to know about blockchain to use it. This is a global force in technology to reckon with. The technology is growing and getting embraced by world’s largest economies as well as the less-developed countries.