What is Blockchain?
What is Blockchain?
A lot of people will have different and unique responses to the question, “what is block chain?” Some will say that it is a ledger which shows all transactions (blockchain) of a certain computer network. Others may say that it is the actual thing that happens on the network. Both answers are valid, but what is really meant by the term is something completely different.
Blockchain is not a ledger, in the strictest definition of the word. Regardless of which definition is correct, it does show how money is moved from one source to another. Blockchains are made up of multiple ledgers, each of which can be used for something different. Blockchains are a way of organizing the public key infrastructure (PKI) that underlies the entire chain. The entire premise behind the idea of blockchains is the idea of decentralization. Although some believe that it is more important to prevent fraud and misuse than decentralization, the truth is that the two go hand in hand.
what is block chain?
The backbone of the entire chain is the blockchain, which is a distributed ledger that is maintained and updated on computers throughout the world. When you use the Internet to perform financial transactions, you are actually performing two different transactions. You are either transacting with a computer server at one location and then transferring the transaction details to a computer that is located at a different location or you are performing the transaction on your own computer where the transaction details are stored and only transmitted to a specific destination. There are both advantages and disadvantages to each method, depending on your needs and expectations.
For instance, when you transfer a currency from one location to another, you are in essence transferring the transaction details between the two computers. This is done using the ledger on both ends of the transaction. In the case of the computer server, all transactions are recorded in its database, which acts as the “ledger” of the ledger network. As a result, it is not necessary for the end-user to do anything manually. The ledger is continuously being updated by computers across the globe which ensures that all the transactions are valid and no duplicates are allowed.
However, the major problem is that the ledger on the server has to be constantly monitored and maintained by a group of IT professionals who are constantly updating the ledger itself. If something happens, the entire system can be brought to a standstill because there would be no one to maintain it. This is the main reason why most businesses are not adopting the use of bitcoin technology to avoid these problems. If you want something that is fast and efficient, you should consider using the bitcoin ledger instead of the regular ledger that is maintained by financial institutions.
The good thing about the recent developments regarding blockchains is that now everyone can play a part in making the system better and faster. One person can write the best software program in order to allow all users to have fast transactions. Another person can hire programmers who can make improvements to the ledger. The developers and technicians are always available so that any problems can be fixed immediately. All in all, the recent developments in blockchains like what is called the bitcoin ledger is something that we can benefit greatly from.