Blockchain is a computing system that does not focus on a center or one authority. So, this system is a network that has no center.
One of the computerized systems and the internet that is developing is blockchain.
What is blockchain?
Most of the world of cryptocurrency technology like Bitcoin relies on a form of database with the advantage of being able to track large and secure transaction volumes. The technology used by many digital currencies is Blockchain.
Blockchain is a computing system that does not focus on a center or one authority. So, this system is a network that has no center. The system is regulated by all members or members.
Literally, blockchain consists of two words, namely 'block' which means block and 'chain' which means chain.
Blockchain was first implemented in 2009 and was revolutionized with Blockchain 2.0 in 2014.
The technology consists of blocks that hold transactions. Thus, each block is linked to the other via cryptography, thus forming a network.
As the digital universe develops, future cryptocurrencies have become an increasingly attractive proposition in the market. He may not have a traditional banking infrastructure.
Some developing countries in the world have even implemented Blockchain-based national currencies, such as Bitcoin, and the technology is also used by several large charitable projects to help the unbanked.
Blockchain also has the potential to be used outside the scope of digital currencies and is attracting the interest of many traditional financial institutions for adoption.
How does it work?
Blockchain systems consist of two types of records, transactions, and blocks. These transactions are stored together in one block.
The unique thing is that each block contains a cryptographic hash so that it forms a network. The cryptographic hash function is to take the data from the previous block and convert it into a compact string. This string allows the system to easily detect any sabotage.
With this method, meaning that each block does not need to have a serial number, the hash allows each block to verify its integrity. Each block will confirm its validity from the previous block. Block linkages aren't the only thing that keeps networks secure.
The technology is also decentralized, every computer with the software installed has a copy of the Blockchain which is constantly updated with new blocks.
There are no centralized servers holding transactions, and since each new block must meet a requirement in the chain or network, nothing can overwrite previous transactions.
Other transaction requirements, i.e. can be used to determine valid entries.
In Bitcoin, for example, valid transactions must be digitally signed and must issue one or more unused outputs from previous transactions, and the number of transaction outputs cannot exceed the number of inputs.
What are the largest databases?
Blockchain's popularity has exploded in recent years and is gaining support in the technology and financial sectors. Bitcoin has contributed to the popularity of the technology as it is arguably the most widely used in the sector.
R3 recently developed Blockchain-Esque technology that can be used by banking institutions, and in May 2017 raised $107 million from backers such as Intel, HSBC, and Bank of America.
Another major player is Hyperledger, which echoes an open-source cross-sector collaboration created by the Linux Foundation to popularize Blockchain-based ledgers, with the first-generation technology released in July 2017.
Several companies in the accounting field have also said that they are testing Blockchain technology, such as Ernst and Young who have announced their new technology, namely making digital wallets available to all their employees in Switzerland.
IBM announced in March 2017 that it would build its own 'Blockchain as a service offering based on Hyperledger, allowing customers to build secure blockchain networks.
Earlier this year, the London Stock Exchange also revealed that it was ready to start using Blockchain to increase transparency for shareholding information for unlisted businesses, demonstrating the positive impact of the technology.
How safe is it?
Due to the advanced cryptographic protection system, Blockchain offers a much more secure experience than traditional banking.
The fact that the technology is decentralized, and cannot be changed or edited makes it ideal for financial transactions and storage of important information.
Blockchain is useful for maintaining user privacy, but unfortunately, sometimes this image is considered the payment method of choice for cybercriminals because Bitcoin network nodes do not have to reveal the identity of the person making or receiving payments.
Definition of Blockchain 2.0
As Blockchain grows and develops, companies start thinking about new applications for this technology.
In 2014, ‘Blockchain 2.0’ was popularized as an umbrella term for this new ecosystem. Because seeing technology is used smarter and more advanced. For example, a smart contract can process payments when a project is completed.
This technology has the potential to unlock the technology for use in other industries outside the financial sector.
In the music business, for example, Blockchain 2.0 can be used to manage copyrights and collect royalties from digital streaming and downloads. It can be used to register assets, manage many things.
As for such properties, vehicles, or machines and introduces the ability to fill in data accurately based on usage.
