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For those who have no idea who Satoshi Nakamoto is, it is the name used by the unknown person or people who designed and revolutionized the idea of the digital currency bitcoin.
What was originally bitcoin, is now taking different shapes and spreading around the globe. Bitcoin has been referred to as this era’s digital gold because of its worth, which has increased dramatically since its inception.
Let’s start with what a blockchain is. It’s an incorruptible database of digital transactions that is programmed in such a manner that it can record the value of everything.
A Distributed Database
Imagine an excel spreadsheet which is multiplied and spread throughout the digital world where every action you take gets recorded in the spreadsheet. This is similar to the idea of blockchain technology. The database for this technology is public and easily accessible. It’s not kept in one single location, it’s everywhere, which means the entire population can access it and hackers can’t attack it.
Blockchain as Google Docs
Whenever you write something in a word document and share it, the other person can’t make changes to it because it’s locked. This is how the transactions of blockchain technology work. It is an online ledger that is shared everywhere. This way, no one can lose the information and data. Everything is synced, updated and stored. Instead of having to share the documents again and again, how beneficial is it to have a shared document that’s visible and accessible to all and can’t be misplaced?
Blockchain Durability and Robustness
Just like the internet, blockchain also comprises this same robust ability, which means two things:
1.No single individual can control it
2.It cannot fail
Bitcoin came into existence in 2008 and since then, it has worked without any system errors. If it was ever effected, it was though human intentions or man-made software. The internet has been a very reliable source and a similar structure for over thirty years and blockchain will follow this same path.
Transparent and Incorruptible
After every ten minutes, blockchain technology checks itself. These transactions that take place in a group are called a ‘block.’ Due to this block that occurs, two vital properties are present.
- Transparency: The data is public. It’s no one’s property and no one can get away with doing anything.
- Not corruptible: To alter anything that happens in blockchain technology the power of a supercomputer is needed. Even though it seems possible, it’s very unrealistic.
A Network of Nodes
The blockchain is made up of a network of nodes. A node is a computer that has access to the blockchain technology while using an individual validates the transactions.
Due to this, a super strong network was created and each node becomes a part of the bitcoin process. They ‘mine’ the bitcoins. By mining, we mean that they solve complex puzzles in order to win bitcoins. Originally, there was just bitcoin, but now almost 700 bitcoin-like crypto currencies exist and there are many more in the making.
The Idea of Decentralization
Since the start, blockchain has been a decentralized technology. Anything that happens on it effects the whole of it. Globally, a cluster of computers together using blockchain technology can monitor bitcoin transactions. A single authority does not manage this. Many experts on blockchain technology agree that decentralized networks will certainly be the new trend in technology.
Who Will Use the Blockchain
In order to utilize bitcoins and benefit from blockchain you don’t need to know about the infrastructure of blockchain technology. According to The World Bank, over $430 billion U.S. dollars were transferred two years ago. Today, there is a huge need for blockchain developers. Due to this technology, there is no concept of a middleman in transactions. GUI, short for the graphical user interface, created wallet applications for blockchain which lets users purchase products using bitcoins and other digital currencies. It should be noted that it has been predicted that in the near future, wallet applications will help with identity management.
Blockchain and Improved Security
When you store data across the network, blockchain acts as a security guard and eliminates all the risks that are involved. Protecting your data with passwords is considered safe and a very common method which is used by every internet user. However, hackers can still attack your computer by cracking your password and stealing your personal information. This is not the case with blockchain technology because this latest innovation uses enhanced security measures like encryption technology to protect your data from online threats.
In blockchain security control, there are two keys that help secure your online assets, these keys are known as Public Key and Private Key. The Public Key contains the address of the user on blockchain so that whenever the user purchases bitcoins, it will be recorded on that user’s specific address. On the other hand, the Private Key is the password that only the owner of the account knows and the owner can access their bitcoins whenever they want. With this advanced security and protection system, blockchain technology will revolutionize the way business transactions take place.