Here’s Everything You Need To Know About Blockchain and Bitcoins
Blockchain Revolution introduces to us a virtual financial world within our world; the world of Bitcoins and Blockchain Technology. The creator of this world, Satoshi Nakamoto, an anonymous personality, or perhaps a group of experts found out this new, innovative way of handling money and other kinds of data. The author gives us a brief glimpse of this high-tech world.
Blockchain technology allows people to make transactions through a transparent process. Everyone who is using blockchain technology will have access to and thus, become a part of the management of a decentralized database.
Blockchain has definite methods for the transaction of business. Every transaction gets a timestamp and is added to the database. After verifying that it does not corrupt other data and getting its approval by the majority of the parties involves, it becomes legitimate. As such, there is a high level of transparency and verification protocols. This prevents thievery and hacking. Moreover, there is no opportunity for making changes to older entries.
This proves that this technology is not regulated by any party thus, making it decentralized and trustworthy.
Security of Blockchains technology
Blockchain technology derives its name from its primary functionality. Each record, containing transactions, is named a ‘block’ and when added to the database, they are linked to the previous blocks, thus, making a ‘blockchain’.
Blockchains have a special technology that prevents tampering of transactions in their blocks. Every new block, created by nodes called ‘miners’ contains a link to its preceding block and the same persists for that block’s preceding blocks and the chain continues. Hence, the addition of a new block ensures that its data gets broadcasted to the other nodes in the network of the database. This triggers a ‘Consensual Algorithm’ which ensures everything is in agreement and protects the blockchain from tampering.
There is another famous algorithm called the ‘Proof-of-work algorithm’ which prevents tampering by ensuring blocks containing altered information are not added. This is done through the identification of an input in a complex series of calculations in the added block that can link to the previous transaction history of the chain.
This makes blockchain highly secure.
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Cheaper, faster, and more inclusive technology
While online transactions might seem fast, they take a ridiculous amount of time due to the middlemen involved in completing the transaction. Blockchain technology, on the other hand, takes around 10 minutes to complete a transaction.
Blockchain Revolution states that blockchain technology uses ‘Bitcoins’ as its currency. These bitcoins take very little time for transactions and as mentioned earlier can be more secure to use than traditional banking, due to the transparency and cut-edge technology of the blockchain system. Moreover, it allows small transactions to occur which is mostly unacceptable in banks due to its complex mechanism and at no cost. All that is required is an internet connection.
A huge asset for Small Business
Blockchain technology and its smart contracts can make starting and running a company easier. There are several operations such as raising capital, protecting assets, making payments, etc involved in establishing and managing a company. These operations can be handled using blockchains. Furthermore, these can be performed with ease and are secure. This has attracted a lot of small businesses and entrepreneurship to blockchain technology.
Moreover, smart contracts and micropayment facilities of blockchain technology enable companies to charge a small pay-per-use fee which is beneficial for media companies.
It is also beneficial for customers because the decentralized method of distribution makes sharing of services by companies faster and more secure.
Challenges to the Blockchain Technology
Also a part of most searched top book summaries, Blockchain Revolution points out the challenges that this up-and-coming technology faces.
The first challenge is getting the general public to understand the benefits of blockchains technology and getting them to participate in it. Without the participation of the general public, this technology will never realize its full potential.
The second challenge is government regulations. Since governments are rarely efficient when it comes to understanding new technology, several hurdles might be placed for blockchains and bitcoins. These obstacles may come in the form of poor regulations or an unprecedented surveillance state.
The third challenge is the amount of energy expended in maintaining and using blockchain technology.
The fourth challenge is the fear of the jobs that would be lost due to automation by blockchain technology.
However, there are solutions to all these problems as put forward by the author in Blockchain Revolution and according to the author, the pros highly outweigh the cons when it comes to this technology. Moreover, the cons can be solves by innovative solutions which would make blockchain technology highly efficient and the go-to tech for the next generation