Never heard of blockchain tech? You probably have and just didn’t know it. You may even have used it without realizing – have you ever used Bitcoin? Or perhaps looked through a website like BitFortune to find a reliable online Bitcoin casino? Then you have used blockchain tech. It is the technology that makes Bitcoin possible.
Blockchain tech is a relatively new and confusing concept for most people. It is so completely different from what we are used to. Don’t feel too bad if you don’t fully understand it yet, only a few people really do. Instead of information being stored in one central location and controlled by a single organization, it is distributed over a network of connected computers. That means to destroy or corrupt the information you have to do so on all the nodes in the chain. A public blockchain, like Bitcoin, allows anyone to join it and participate, but you can also have a private blockchain that only authorized members can access.
At its most basic, it is essentially just a list. Think of it as a spreadsheet. The difference between this spreadsheet a standard one is that this one is copied across over several computers. It is also automatically updated.
So, it is like Google Docs? Not quite. With Google Docs, the information is stored on Google’s servers. So, when you save something to your Drive, it is essentially being backed up by Google. If something went wrong with Google’s servers, your information would be lost. Google might also decide to cut off your access to the document, and there wouldn’t be anything you could do about it.
With the blockchain, you would have to take down every single computer in the network to destroy the information. And, since the different nodes are all autonomous, there is no single organization that has control over all of the information.
Also, with Google Docs, you have to set the permissions on each document. You decide who to share it with and what she’s allowed to do with the document. Now, say that you set the permissions so that anyone who has a link can edit the document.
So far, it sounds similar to what we said about the blockchain, doesn’t it? Except that with Google Docs, anyone with permission to do so can edit the document. Changes are updated automatically.
With the blockchain, things are very different. Anyone is allowed to submit data to the chain, but it cannot be added until it has been verified by other nodes within the network. This is a complex process aimed at making it difficult to fraudulently add entries. It is only once the data has been completely verified that it is actually added to the chain. And, the coup de grâce is that this information is unchangeable. That is what sets blockchain tech apart – every step in the process can be viewed. Nothing can be deleted or changed at the end of the day.
This makes it incorruptible and completely transparent. This and the nature of the network make blockchain tech one of the most secure concepts online.
Below you’ll find an extremely helpful infographic about the blockchain technology, thanks to BitFortune. It is said that it can improve 16 different industries so let’s check this out: