Blockchain, Blockchain, Blockchain!
If you’ve spent any time at all browsing through tech news then this word must have caught your attention.
Yes. The word ‘Blockchain’ is everywhere and almost all tech websites, as well as forums, have been hyping it up for almost a year now.
But what exactly is Blockchain? Does it really live up to the crazy hype and attention that it’s been receiving?
We shall try to give you the answer to the above question and hopefully by the end of this article, you will be a part of the blockchain craze as well.
Blockchain; Decentralization and Why It’s Awesome
To put it very simply, Blockchain is just a decentralized ledger.
Okay, that wasn’t very simple at all. Let’s break down the word ‘Blockchain’. It is a combination of the words ‘block’ and ‘chain’ (shocking).
You can think of each block in the blockchain like a novel where each page will have the same text written on it along with a page number to identify its position. In the same way, each block contains some data in the form of transaction, and a hash symbol (#) tells us where that block is on the blockchain.
Now imagine every time someone adds a new line in any copy of the novel, every single copy of the novel has that line appended to it automatically. This is exactly what happens in the blockchain – whenever a new transaction is performed, the record of it gets updated on every computer that is running on the blockchain network.
This is known as decentralization where the entire copy of the blockchain is stored in every computer. The computer is referred to as a node which is a part of that blockchain and all the nodes are updated nearly simultaneously.
Now that you probably have a basic idea of what a blockchain is, let’s dive right into why everyone seems to fall head-over-heels in love with it. To put it simply, decentralization is remarkable. Decentralization is what has made blockchain the most disruptive innovation since probably the internet in the 90s.
Everything you write on the blockchain gets stored on multiple, sometimes even millions of, computers all throughout the world. This makes any alteration or degradation of data on the blockchain damn near impossible, where anything that gets stored on the blockchain becomes immutable and irremovable. This gives the data a level of security that was unheard of before the invention of blockchain technology.
This level of security is what makes Blockchain so beloved and worth getting hyped up about, as we live in a society that runs on data usage and transfer. There are a lot of people out there who would go to any length to cause harm by attacking and manipulating this data. Blockchain provides a very simple, effective, efficient and relatively economical solution to this security concern.
The element of ‘Trust’ is an essential concept in blockchain networks. Blockchain technology is leveraged by organizations to fundamentally rewrite existing business models, processes, systems; to drive towards greater efficiency by improving trust.
It Gets Even Better!
Multibillion-dollar corporations would kill for this type of tech and are investing a significant chunk of money into it. The way things seem to be going, a world where everything runs on the blockchain seems like a pretty serious possibility and this speaks volumes about the bottomless potential of cryptocurrencies that are all intrinsically linked to the blockchain. All of this, combined, makes Blockchain the most exciting and hyped-up technology of this decade.
What are your thoughts on Blockchain technology? Do you think it has the potential to change the way we live our everyday lives? Let us know in the comments below.
About Bank Of Hodlers
Bank of Hodlers is building a customer-centric bank on the blockchain, by providing financial services like cryptocurrency-backed loans and cryptocurrency-backed cards.
We have recently launched our asset-backed lending product where you can earn interest on your BTC, ETH, TUSD and DAI. You also have the option to borrow DAI against Ethereum. You can sign up to the platform by clicking here: app.bankofhodlers.com/register.