Today technology is everything. Without technology it feels like nothing works. From tiny thing to bigger technology, everything has seen significant growth. In every field, every day new technologies are emerging. Today technology has become part of human beings daily life. It has a vast impact on human existence. Today we are all dependent on this technology.
One such technology is blockchain, which we might not use it in our day today life but it is growing and gaining a special place in human life and growth as well as economical growth too.
Blockchain is a distributed database or ledger shared among a computer network’s nodes. They are best known for their crucial role in cryptocurrency systems for maintaining a secure and decentralised record of transactions, but they are not limited to cryptocurrency uses.
Different types of information can be stored on a blockchain, but the most common use for transactions has been as a ledger.
Since Bitcoin’s introduction in 2009, blockchain uses have exploded via the creation of various cryptocurrencies. A blockchain is somewhat similar because it is a database where information is entered and stored. But the key difference between a traditional database or spreadsheet and a blockchain is how the data is structured and accessed.
A blockchain consists of programmes called scripts that conduct the tasks you usually would in a database: Entering and accessing information and saving and storing it somewhere. A blockchain is distributed, which means multiple copies are saved on many machines, and they must all match for it to be valid.
To avoid potential legal issues, a trusted third party has to supervise and validate transactions. The presence of this central authority not only complicates the transaction but also creates a single point of vulnerability. If the central database was compromised, both parties could suffer.
Blockchain mitigates such issues by creating a decentralised, tamper-proof system to record transactions. In the property transaction scenario, blockchain creates one ledger each for the buyer and the seller. All transactions must be approved by both parties and are automatically updated in both of their ledgers in real time. Any corruption in historical transactions will corrupt the entire ledger. These properties of blockchain technology have led to its use in various sectors, including the creation of digital currency like Bitcoin.