What is Blockchain & Why is it Important?

Blockchain is the technology that keeps cryptocurrency secure, and what protects your digital currencies from being stolen. It’s a term you’ve probably heard before, but you might not be as familiar with how it actually works.

Nearly every single cryptocurrency employs blockchain technology to protect its users, including popular coins like Bitcoin, and Ethereum among many others. While some people might worry about the safety of digital currencies and the possibility of their money going missing thanks to hackers,?Coinbase?claims blockchain makes payments even more secure than traditional debit and credit card payments.

How Does Blockchain Technology Work?

Just like the name implies, blockchain technology is quite literally a chain of blocks. Each ‘block’ is actually a chunk of data, which is encrypted and stored at various intervals along a decentralized online ledger of information.

Many users have to verify the information stored on a blockchain, and once a block is added to the chain it can’t be altered or changed in any way. Because of this, a very accurate record of transactions can be kept, making it difficult to forge or change data for ill intent.

How Does Blockchain Compare To Banks?

Blockchain and traditional banks are very different, but thanks to how long they’ve been around, many people might find banks the better choice. However, blockchain technology offers a lot of perks regular banks cannot.

For example, blockchain technology is more accessible than regular banks, as they are ‘open’ 24/7. In addition, blockchain is much more difficult to hack than bank servers, making it the more secure of the 2 options generally.

What Other Ways Can Blockchain Be Used?

Blockchain technology isn’t just for cryptocurrency. There are a number of sectors that can benefit from the security and transparency of this technology, ranging from medical to supply and manufacturing.

According to IBM’s website,?the healthcare system might be the most benefited by adopting blockchain technology in order to keep records safe and interconnected, as currently individual doctors and practices aren’t easily able to access all the records they might need for smooth and efficient healthcare service for the patient.

Pros Vs. Cons of Blockchain

The main advantage of blockchain technology is its Strong Data Integrity. It’s about as secure as data can be, thanks to the inalterable blocks of data. It’s also completely Transparent, and every transaction is stored on the ledger for everyone to see, meaning it’s difficult to tamper with.

The main drawbacks with blockchain is how Time Consuming it is to create the unique nonce values needed to create each block in the chain. Another of the main complaints against it is the fact that only a Few Transactions can be Stored on each block, meaning that time consuming process must be repeated frequently.

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Staff Writer ( @ BloggersHUBB )