Updated: Mar 5, 2020
By Mathew Gideon
Blockchain technology is simply defined as decentralized distributed ledger which has a unique key that records the provenance of a digital asset collected through a network that sits on top of the internet and records can’t be altered without the alteration of all subsequent blocks. Blockchain develop trust among the community enabling transaction peer to peer and trust is not made by big institution instead is made by collaboration and cryptography of codes.
For instance, in a more friendly way blockchain is like a kitty party. A game where by bunch of women getting together having good time while playing cards and exchange some money . In a kitty party there 12 women each women contribute 10 usd and there is a lucky draw whereby a winner gets 120usd. Hence every woman trust the other, if there is fraud happening then it will be among themselves. On this case shows a distributed trust among the women and that is idea behind the blockchain technology.
How it works, involves a transaction is conducted is posted globally across millions and millions of computers out their around the world their group of people called miners. They have massive computer power to their fingertip 10 to 100 times bigger than goggle. In every 10 minutes a blog gets created that has all the transaction on previous ten minutes. Miner get to work try to solve tough problems and first miner to find the truth gets rewarded in digital currency for example in Finmail. If I have to hack the transaction, also have to hack other blog in entire history of commerce done on previous minutes on batch of computers simultaneously.
The importance of blockchain is that, firstly help to create a true sharing economy such as uber services it pretend share its economy instead they aggregates services together and sells them. Secondly it protects rights through immutable records because you can’t hack the chain creating condition of prosperous. Thirdly our identity is not viewed by institution or government instead they will be a virtual identity in a black box. Fourthly enable to reduce risk and stamp out fraud, as many stamp now days are kept in product having no quality as written in a stamp.
Lastly with blockchain technology will fix up the gap of trust likewise the internet come up to fix communication gap. The technology converts a lot of our uncertainty into certainty. Blockchain is not just an economic revolution it’s also an innovation in computer science technology. Likewise the world should support the blockchain technology in order to solve mostly world financial problems.