What is blockchain and what are its benefits
The blockchain technology is the advanced database for writing and storing data. The sequential addition of blocks and the inability to change any of elements of the chain make blockchain the most transparent and the most secure technology in the world.
What is blockchain and how does it work?
The simplest and most general definition of blockchain is the database. It consists of a huge information chain, many users participate simultaneously in its creation. The devices that store information do not have a “command center”, a server that could be hacked. All operations and data on these operations are recorded simultaneously and sequentially.
No process coordinators and the use of special recording algorithms makes it impossible to change or delete information.
Records are on all users’ devices at once, duplicating and confirming the reliability of each other.
The registry is fully available for viewing, as all transactions are contained in the information blocks and transmitted in encrypted form to each blokchain user. Thus, any operation is both a guarantee and a confirmation of itself.
In fact, blockchain is a huge electronic system, allowing safely transmit a wide variety of data: currency, licenses, etc.
The main advantages of using blockchain
It's only been a few years, as the world learned about blokchain, but the technology is not a “young” development any more, serious institutions are now interested in this method of storage: banks, medical centers, government agencies.
For example, the Georgian cadastral system is blockchain-based since last year, recording information about transactions with real estate.
- Decentralization. There is no center or server to store data on the operations performed. Potential hackers can not physically reach all computers that simultaneously capture information. There is no such person or group of people who could escape with data records or edit information.
- No control by government agencies. Since there is no center, one common key or password, neither state structures, nor country leaders, nor security services can interfere with the data transfer process. Thus, the general financial market also has no influence on the blockchain. Technology remains independent and self-regulating due to complex algorithms.
- Reliability and security. Copies of data on operations are stored by each user of the network. Even if many devices from a hundred participants of any transaction go out of order, the information will remain unchanged. Attackers can not crack the database, data security is ensured by the system itself.
- Versatility. The system can work with the transmission and storage of absolutely any data.
Blockchain is the same tool as the Internet, according to Financial Times columnist Sally Davies. It can find quite a lot of uses. The most popular and famous is cryptocurrency, for example, bitcoin. Thanks to the blockchain, operations with it are possible without intermediaries. Bitcoin is considered the world's first cryptocurrency and this is why it is so popular: according to the University of Cambridge research, the total number of users in the world is 11 million people.