BlockchainBlockchain technology was first reported in 1994. But with the advent of bitcoin, it began to be used in the cryptosphere. Blockchain is a distributed database. It consists of a chain of blocks. Each block contains its own info as well it contains the details of the previous blocks. It means it is impossible to tamper with or delete your data.
How does it work?
In order to be valid and executed, transactions must be approved by members. The PoW or PoS consensus algorithm is used for confirmations. Bitcoin, for example, operates on the PoW. To mine a block and confirm a transaction, participants need to decide to find the block hash. To do this, they need powerful computers. Whoever finds the code first confirms the transaction and creates a new block. The miner then receives a reward on his blockchain wallet.
How Is Blockchain Used?
The technology is actively used in a variety of applications other than crypto.
- Digital user identification
- In logistics and supply chain to control and ensure reliable transportation of goods
- In elections management to ensure honest voting.
- Charity and transparency of fees without corruption schemes.
- Copyright protection
In the future, the technology will develop even more actively and already forms a high competition to the banking centralized sphere.
What is an advantage of using blockchain
- Total data security and low risk of network hacking
- Transparency and accessibility to transaction histories in the network
- Interaction with assets and other users without intermediaries
- High transaction speed without delays
- Low fees