10 things you need to know about blockchain

By September 7, 2016Bitcoin Business

What is Blockchain? The simplest way to understand blockchain is to think of it as a vast digital ledger (or database) of transactions or information that is shared among millions of computers, or other devices connected to the Internet. When blockchain is used for transactions, with each transaction a person makes — such as sending or receiving funds — the ledger grows. Each new transaction becomes (or forms part of) a "block" that is added to the "chain." What makes blockchain technology so revolutionary is that it’s both secure and can be decentralized. Through using complex cryptography and a consensus between computer servers, transactions can take place between unknown parties without a central authority to grant approval. Blockchain has the potential to reshape the financial services industry — and much more. Here are 10 things you need to know. It is Not Synonymous with Bitcoins Bitcoin is a digital currency, and the technology that underlies and supports Bitcoin is blockchain. However, blockchain technology has functionality beyond Bitcoin. It May or May Not Involve Digital Currencies Blockchain has uses beyond sending or receiving value. For example, it is currently used in parts of the world to track ownership and the transfer of assets, including real estate and securities. It Can Be Used for Public and Private Transactions There are in essence two types of blockchains: private and public (or centralized or decentralized). A public blockchain allows everyone to see all transactions that have taken place on the blockchain, everywhere in the world. A private blockchain is where permission is restricted and only permits a predetermined group of members to access the blockchain. It is also possible to use a combination of the two. It Can Execute Contracts "Smart Contracts" are contracts written in code so that computer protocols facilitate and […]

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