Blockchain is being talked of very frequently these days… Every other technology geek is interested in the block chain at the moment. What is it that is so appealing about this new technology?
Most of us know the fact that when we are involved in an international transaction we require trustworthy third parties known as intermediaries to process the transactions, such as exchange rate converters, guarantors, etc.
But this is the modern era, and now there’s not much need for all the troubles to take place when you hire an intermediary.
BlockChain and the BitCoin…!
The blockchain is an open-source technology, which is an alternative to the traditional system of financial middle men or agents, and it provides intermediary support when a transaction is in cryptocurrency – Bitcoin.
The blockchain provides a strong, reliable and traceable system of transactions where there is high security on Bitcoin movements.
Node and the Miner…
The one making the transaction is referred to as a node, whereas the agent responsible for the checking and control of each transaction is called a miner.
“It is the duty of a miner to make sure that every transaction is recorded and stored in the proper place and file and all the data is secured in the right block and in return, he or she receives compensation just like an ordinary intermediary would receive.
Some people have misunderstood Blockchain for being an app or a software but it’s not that, it actually a new way of documenting data on the internet.
Block chain may take many forms of such as tracking someone’s identity, recording transactions, confirming agreement between two or more parties, etc.
Who invented the Block Chain?
Well, now you must be curious to know who created this highly sophisticated, modern system of virtual transactions. The block chain system was reportedly introduced in the market by a Japanese man named Satoshi Nakamoto, who was born on 5th of April 1975. It’s not clear whether the system was invented by him alone or with a team.
The first ever Bitcoin transaction was reported in a document in 2008. The actual background story behind developing this marvelous program is still not known.
In the block chain the data is stored in blocks which can never be changed or altered without the agreement between parties. The data stored will keep on generating bit coins for the users of blockchain development company.
Key Points on Block Chain
Some Important reasons that you need to know about the Block Chain:
- Block chain reduces risks related to the security of transactions
- It builds trust between parties transacting.
- Reduces time between transactions.
- Reduces costs of agents and intermediaries.
- Block chain helps businesses carry out transactions instantly.
- Recording the transactions is automatic and secured.