Blockchain is that the technology that creates Bitcoin and other cryptocurrencies very secure.
It’s an open-source and distributed database that’s stored in nodes or computers within the network.
When new transactions or blocks are added to the blockchain, it’ll automatically update itself. Here are 5 very interesting facts about this ultra-modern technology.
Once an entry has been added onto the blockchain, it’ll be nearly impossible to get rid of or alter it later. If you wish to change an entry, you’d should basically alter all the transactions that came after it.
Doing this can be mathematically impossible, so even genius fraudsters must look elsewhere to steal bitcoins without an excessive amount of effort.
Being tamper-proof is additionally the explanation bitcoin payments are final and irreversible.
It’s 100% Transparent
Anyone with access to the blockchain can see all the transactions that have ever occurred within the past.
You’ll be able to even find the primary ever block (block 0) that was mined by Bitcoin founder, Satoshi Nakamoto, in 2009. This genesis block contained the message “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
Criminals Can’t Hide Behind The Blockchain
If criminals think they will hide behind the relative anonymity that Bitcoin provides, they’re sorely mistaken.
Many have tried to evade the long arm of the law by converting their stolen loot to bitcoins and transferring them to different wallets, but with the transparent nature of the blockchain, computer experts can spot and trace all the bitcoin transactions these criminals have ever done.
Blockchain Technology isn’t Limited To Cryptocurrencies
Many different startups have began to experiment with implementing blockchain technology in various industries.
One such example is Ethereum with their smart contracts technology which basically runs on blockchain.
Since the blockchain is decentralized, two parties can make transactions between themselves while not having the services of a middleman. This not only saves you money, but it also saves you plenty of your time and conflict.
Blockchain Can Still Be Improved
While this technology has definitely improved the lives of the many people, it can still be improved.
For one, as time passes by, the blockchain will grow to be several hundred gigabytes of information. this may cause plenty of bandwidth and storage problems on personal computers.
Let’s hope the brightest minds within the crypto space can find an answer to the present predicament soon.
This can be found with the DAG file for Ethereum taking up many gigabytes driving the need for Graphics Cards with ever bigger GPU memory onboard. This however has effective kept ASIC off the market for Ethereum due to the DAG file.