Blockchain which is even known as Distributed Ledger Technology will be seeking for addressing core concerns around transparency and faith which inhibits online transactions. Blockchain Technology had its ups and downs and reached now in the fourth generation finally, the promises will maybe hold.
Originally while invented as an underlying ledger for the Bitcoin cryptocurrency, this has made the usage across the different industries and business situations. When the potential applications for Blockchain technology can be revolutionary, then its real-world adoption will be continuing for being constrained till the law, businesses, society, and technology are completely understanding tumultuous implications and devise safety mechanisms thru the common consensus.
Human beings have lived in integrated societies for furthering their odds of survival in a hostile environment since they are social animals. Being social beings, the humans have both co-operated and competed with fellow human beings in the face of usual threats.
However, humans over time, have recognized that a safer and more beneficial method of availing resources would be exchanging them, without a confrontation, and that is thru a trade transaction. This has resulted in bartering and exchanging depending on understanding in between them.
As of today’s modern trade, an underlying peer to peer transaction will be assuming quality, since the geographical distance is enhancing and the capacity of the participants for directly relying on one another is minimizing. For the purpose of providing needed “trust”, the third party intermediaries are stepping in.
“Trust” is replacing the “Transparency” which is afforded by smaller and proximate societies. The record keeping has become paper intensive and is handled by means of multiple parties i.e; A, B, and the intermediate parties. The businesses processes, wherein every entity privately records its statement of a transaction and later agree or contradict the other entities records of the same, have evolved. This has resulted in prolonging clearing and settlement cycles that is extending to days, if not weeks.
Restoring Transparency, Re-Establishing Trust By Blockchain Technology
A pseudonymous individual or a group of personnel, under the name Satoshi Nakamoto, planned a strategy for creating a digital currency which is none other than “Bitcoin”.
With the concept of a peer to peer transaction, Nakamato commenced in a world without trusting middlemen. Nakamoto, by availing innovations in market incentives, advancements in computer science, and cryptography, had planned a method, wherein any sort of participant could transact, query, and scrutinize the state of a transaction in Bitcoin casino anonymously.
Even he has created a method, wherein the voluntary nodes could circulate, verify, propagate transactions and periodically accomplish consensus pertaining to the genuine history of transactions without the necessity for any “trusted” or continuing nodes. By means of following his theoretical method, Nakamoto with a functioning system in 2009 has resulted in Bitcoin cryptocurrency and its underlying record-keeping technology, which is none other than “Blockchain”.
He has outlined steps for running the network as follows”
- In the network the nodes would be voluntary, that can join and leave anytime.
- The transactions across the network will be published..
- The nodes will be gathering and verifying transactions into blocks.
Below you can find the complete infographic made by the team from Bitcoinfy which explains it step by step, a true beginner’s guide into Bitcoin and Blockchain Technology.
Have you been giving it a thought to implement blockchain in your business? Did you have a chance to look close into Bitcoin? Share your thoughts with your peers and use our commenting section below.