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An Introduction to the Blockchain Technology for the Beginners

These days, technology is scaling newer heights of success at an unbelievably fast pace. Among the latest triumphs in this direction is the evolution of the Blockchain technology. The new technology has greatly influenced the finance sector. Actually, it had been initially developed for Bitcoin – the digital currency. However now, it finds its application in several other things as well.

Coming across this far was probably easy. But, one is yet to know what is Blockchain?

A distributed database

Imagine an electronic spreadsheet, which is copied umpteen amount of times across some type of computer network. Now, imagine Bitcoin Era is designed so smartly that it regularly updates the spreadsheet alone. This is a broad overview of the Blockchain. Blockchain holds information as a shared database. Moreover, this database gets reconciled continuously.

This approach has its own benefits. It does not permit the database to be stored at any single location. The records in it possess genuine public attribute and may be verified quickly. As there’s no centralised version of the records, unauthorised users haven’t any methods to manipulate with and corrupt the data. The Blockchain distributed database is simultaneously hosted by millions of computers, making the data easily accessible to almost anyone across the virtual web.

To make the concept or the technology clearer, it is just a good idea to go over the Google Docs analogy.

Google Docs analogy for Blockchain

After the advent of the e-mail, the conventional way of sharing documents would be to send a Microsoft Word doc as attachment to a recipient or recipients. The recipients will take their sweet time to go through it, before they send back the revised copy. In this process, one needs to wait till receiving the return copy to start to see the changes designed to the document. This is really because the sender is locked from making corrections till the recipient is performed with the editing and sends the document back. Contemporary databases don’t allow two owners access exactly the same record concurrently. This is how banks maintain balances of their clients or account-holders.

As opposed to the set practice, Google docs allow both parties to access exactly the same document as well. Moreover, it also allows to see an individual version of the document to both of them simultaneously. As being a shared ledger, the Google Docs also acts as a shared document. The distributed part only becomes relevant once the sharing involves multiple users. The Blockchain technology is, in a way, an extension of this concept. However, it is important to explain here that the Blockchain isn’t meant to share documents. Rather, it really is just an analogy, which can only help to have clear-cut idea about this cutting-edge technology.

Salient Blockchain features

Blockchain stores blocks of information across the network, which are identical. By virtue of the feature:

The data or information cannot be controlled by any single, particular entity.
There can’t be no single failure point either.
The info is hold in a public network, which ensures absolute transparency in the entire procedure.
The data stored inside it cannot be corrupted.
Demand for Blockchain developers

As stated earlier, Blockchain technology includes a very high application in the world of finance and banking. Based on the World Bank, more than US$ 430 billion money transfers were sent through it only in 2015. Thus, Blockchain developers have significant demand in the market.

The Blockchain eliminates the payoff of the middlemen in such monetary transactions. It had been the invention of the GUI (Graphical INTERFACE), which facilitated the normal man to access computers in type of desktops. Similarly, the wallet application is the most common GUI for the Blockchain technology. Users utilize the wallet to buy things they need using Bitcoin or any other cryptocurrency.