The concept of the Blockchain
A blockchain is an accounting tool that actually helps to simplify the process greatly and provides a system of record keeping as a digital ledger. In the language of cryptocurrency, a block is a record of new transactions, which could mean the location of cryptocurrency. Once each block is completed it’s added to the chain and creating a chain of blocks which is known as a blockchain. https://lifehacker.com/what-is-blockchain-1822094625 We are now living in a highly globalized and integrated world that was owing to the rapid advances in telecommunication and technology, therefore, we need a system where the record could be stored and security is guaranteed. With a blockchain, only community users have the right to control, update and alter the recorded information in the blockchain. Therefore, no one could cheat and alter the recorded information because it provides a highly transparent in this system and everyone using the system could view the record.
Other than that, blockchain allow the user to store their transaction information across the network, making them distributed and decentralized to eliminate the risks of centralized control. In other words, blockchain is available to anyone who has the internet access to use it and run it. It is also meaning that there is no central computer or person could own the system and hold exclusive right because blockchain doesn’t rely on any single server to function. Therefore, it is difficult for people to take down and secretly alter the recorded transaction information. Every individual who runs the system and alters the information by using their own laptop and internet access will automatically hold a bunch of records in the system. Besides, blockchain use cryptography, a form of math that is encrypted to prevent people counterfeited the information. Anyone want to alter the information is like solving complicated math problems. Each block of the blockchain is actually identified and contains the hash pointer which helps to backlink to the previous blockchain. This design is inherently resistant and prevents recorded information from being easy to change.
In addition, blockchain is an open digital ledger that could be shared by two parties to record their transaction through internet access. In other words, blockchain allows you to the shared ledger with your partner. For example, if an individual sends Bitcoin to another party, the information of the transaction is publicly available to anyone who uses the blockchain technology. It is a concept like Google docs which allows multiple users to view the record information at the same time. All the transaction information will be recorded down and publicly published. However, other users are unable to know the transaction record is from which participant because the information is extremely secretive. Besides, the exact amount of transaction that has been made is also maintained secrecy. Therefore, most of the cryptocurrencies like Bitcoin, Ethereum and Monero are using blockchain system to maintain their record in a shared ledger of a transaction.
Once the transaction information is recorded, the data is difficult to alter if there is no alteration in all the subsequent of the blockchain’s block because if an individual own cryptocurrency like Bitcoin, they will have a long password which is known as a private key. Users are required to use this private key to manage, withdraw or buy their currency. However, the users might unable to get back their cryptocurrency if they lose their private key. This makes blockchain widely use in the record cryptocurrencies because by the design it is very suitable to use for any recording of important records such as transaction processing, documentation, identity management and voting. In other words, blockchain provides a secure online transaction for the users since there is no one could cheat from this system. Therefore, this trend led to an increased in interest in blockchains that could provide users greater degree of safety and control.
Furthermore, blockchain provides users and participants an inexpensive platform to manage their transaction records and information data. Blockchain technology does not rely on intermediaries like bank, broker, agent, and middleman. Due to there is no middle man and intermediaries involve in this transaction process, the cost for them to conduct the activities in blockchain system is lower. Participants and users no need to pay any transaction cost for the middleman. Therefore, this can conclude that blockchain is a system that allows participants exchange their value and currency without intermediaries which translate to lower transaction cost. Besides, blockchain makes it become easy to transfer the money across the country and manage their account in an efficient way. Instead of relying on intermediaries like the mediator, broker, and government, blockchain allows participants bypassing mediator and get a greater control on their funds and currency. It is obviously the high-tech developed and integrated world allow blockchain taking advantages to make it possible to freely manage, distribute and decentralized their data and transaction information through online internet network.