Blockchain, a brainchild of the of the mysterious pseudonym Satoshi Nakamoto, is an indisputably ingenious innovation. The technology allows digital information to be distributed to users without being copied, thus creating the spine of a new kind of internet. The Blockchain technology was originally invented for the sole purpose of governance of the digital currency, Bitcoin, however, tech pioneers have devised and continually devise other potential uses for arguably the most disruptive technology. Bitcoin (BTC), tagged - quite appropriately the "digital gold", currently has a total currency value of close to $9 billion (USD) with Blockchain technology being central to its development as well as other emerging altcoins. Similar to the internet, understanding how the Blockchain works is not a strict requirement for utilizing the technology. However, having a basic knowledge of the Blockchain technology would help you get a grasp of why the technology is revolutionary. Distributed Database Essentially, Blockchain works like a spreadsheet which is duplicated thousands of times across a network of nodes. This spreadsheet, by design, gets regularly updated with trade transactions. This is essentially how the Blockchain functions i.e. information on a Blockchain exists as a shared database that is continually updated and reconciled. One of the amazing benefits of the Blockchain technology is the fact that this database of information and trade transactions is not stored in any single location and not governed by one central node or computer. Records kept on a Blockchain is indeed public and easily verifiable by anybody. The fact that the Blockchain is not governed by any central node - instead, it is hosted by millions of nodes/computers concurrently over the internet - means it cannot be hacked. Durable and Robust Blockchain technology, similar to the internet, has a built-in robustness. The Blockchain stores blocks of records that are the exact same across its network and as such, this stored information cannot:
- Be governed by a central authority &
- Does not have any single point of failure
- Transparency: Transaction records are embedded within the Blockchain network as a whole and it is publicly accessible by every and anybody.
- Incorruptible: The Blockchain cannot be corrupted. To alter any unit of information on the Blockchain network, a huge amount of computing power is required to override the entire network.