Blockchain: What is it?
Bitcoin is the new buzz word these days. However, have you heard of Blockchain technology? Well, that’s the technology behind Bitcoin. As per the reports, Blockchain technology was anticipated with an investment of $1bn, the number which was poised to grow even more in 2017.
Blockchain is believed to be a technology disruptor that has brought forth a paradigm shift in the way how financial transactions are done. It alleviates the cost and time required in conducting financial transactions while making them almost impossible to hack or alter at the same time.
Be it a personal transaction or any form of business, it works as a ledger that can smartly record an agreement or contract between two parties across a vast network of computers distributed across the globe. Since this ledger is shared across the network, it becomes almost impossible to make amendments to it or hack it until you have pertinent tools or permissions.
Blockchain: Is it secure?
A typical blockchain database mainly consists of two components- transactions and blocks. Each block contains a batch of transactions which is stored in an encoded form within the block. Furthermore, each block accommodates the hash of previous block thereby forming a chain. Hence, this validates each block in the chain, making it secure and non-hackable.
Whenever a transaction takes place in blockchain, only authorised parties are able to see the details. Though all blockchain users can witness the transaction, but only authorised users are able to actually view details making it one of the securest ways of making financial transactions.