Certainly, you know about the term “Blockchain technology”, it may have a connection to cryptocurrencies just like bitcoins. People may little confused about its function. It seems that it’s commonplace in a theoretical manner. Sometimes common people don’t understand the meaning of blockchain. We will learn about this technology, working and uses along with its importance digitally.
This technology is growing rapidly as this is user-friendly, for freshers, it’s the best plan of action to take the start.
In this network, the chains are connecting through nodes that are peer to peer, they record all the transactions of public of different databases, and are called blocks.
Every transaction is authorized through signatures, which will make it secure from tampering. It will have a protected environment.
Putting a ledger is just like a spreadsheet of Google, on which every transaction has a record on several devices in a network. Anyone can see the data, but no one can change it
The advantages of Blockchain technology are following
Digital signs are being used to make sure that we are doing fraud-free transactions, other users will not be able to change any data of any other individual, without having any particular significance.
When we do traditional transactions, we have to approve them from authorities like the government or bank, etc. But using this technology users’ transactions are just between them, which may be a secure and faster mode of transactions.
When the activation is set off, actions of systems, several events, and transaction amounts can be automatically generated.
Working of Blockchain technology.
Nowadays many business organizations are using this Blockchain technology. So, you must want to know about the working and benefits along with drawbacks. It’s a new technology and it seems it will make a revolution in near future.
Here are some technologies that built a blockchain
- Encrypted keys
- Shared ledger with a network that is peer to peer
- Store and record data of transactions.
It includes two parts, public key, and private key. You can exchange information successfully between 2 parties. Every individual has his own digital identity. This protected identity makes it unique from others.
When an individual has to access any agreement of transaction, digital signature along with peer-to-peer networking make it a better experience for him. When a deal is verified, then a successful transaction is being done between parties.
This technology can also be used to do transactions of several other types, like property dealing and vehicles, etc.
Disadvantages Of blockchain technology.
There are many issues about the private key in cryptography and blockchains. If a user loses a private key, he may have to face many difficulties, this is the main disadvantage of blockchain technology.
Another disadvantage is it will limit the scalability because several transactions are being done on one node. So, completion of the transaction process will take many hours. The main disadvantage is alteration and addition of data is difficult, after it is recorded once.