An Introduction to the Blockchain Technology for the Beginners

These days, technology is scaling newer heights of success at an unbelievably fast pace. Among the latest triumphs in this direction may be the evolution of the Blockchain technology. The new technology has greatly influenced the finance sector. In fact, it was initially developed for Bitcoin – the digital currency. However now, it finds its application in a number of other things as well.

Coming across this far was probably easy. But, one is yet to learn what is Blockchain?

A distributed database

Imagine an electronic spreadsheet, which is copied umpteen number of times across some type of computer network. Now, imagine the computer network is designed so smartly that it regularly updates the spreadsheet on its own. This is a broad overview of the Blockchain. Blockchain holds information as a shared database. Moreover, this database gets reconciled continuously.

This approach has its benefits. It does not allow the database to be stored at any single location. The records inside it possess genuine public attribute and may be verified quickly. As there’s no centralised version of the records, unauthorised users have no means to manipulate with and corrupt the info. The Blockchain distributed database is simultaneously hosted by millions of computers, making the data easy to get at to almost anyone over the virtual web.

To help make the concept or the technology clearer, it is a good idea to go over the Google Docs analogy.

Google Docs analogy for Blockchain

After the advent of the e-mail, the conventional way of sharing documents would be to send a Microsoft Word doc as attachment to a recipient or recipients. The recipients will take their sweet time to proceed through it, before they send back the revised copy. In this approach, one needs to wait till receiving the return copy to start to see the changes made to the document. This happens because the sender is locked from making corrections till the recipient is done with the editing and sends the document back. Contemporary databases do not allow two owners access the same record at the same time. This is one way banks maintain balances of these clients or account-holders.

In contrast to the set practice, Google docs allow both the parties to access the same document concurrently. Moreover, it also allows to view an individual version of the document to both of them simultaneously. As being a shared ledger, the Google Docs also acts as a shared document. The distributed part only becomes relevant when the sharing involves multiple users. The Blockchain technology is, in a way, an extension of this concept. However, it is important to explain here that the Blockchain isn’t designed to share documents. Rather, it is just an analogy, which can only help to have clear-cut idea about this cutting-edge technology.

Salient Blockchain features

Blockchain stores blocks of information over the network, that are identical. By virtue of this feature:

The data or information can’t be controlled by any single, particular entity.
There can’t be no single failure point either.
The data is hold in a public network, which ensures absolute transparency in the overall procedure.
The data stored inside it cannot be corrupted.
Demand for Blockchain developers

As mentioned earlier, Blockchain technology has a very high application in the world of finance and banking. In line with the World Bank, a lot more than US$ 430 billion money transfers were sent through it only in 2015. Thus, Bitcoin Revolution have significant demand in the market.

The Blockchain eliminates the payoff of the middlemen such monetary transactions. It had been the invention of the GUI (Graphical User Interface), which facilitated the normal man to access computers in form of desktops. Similarly, the wallet application is the most common GUI for the Blockchain technology. Users utilize the wallet to buy things they want using Bitcoin or any cryptocurrency.