One of the biggest buzzwords in technology is Blockchain.
A relatively new technology, some people understand what it can do while others are not so sure.
If this word terrifies you, look no further. We’ve got you covered.
Blockchain technology has been around for a while now, to be specific, since 2009. So how does it work?
Simply put, blockchain is a system where data is stored in ledgers, which are distributed and saved on the computers of participating parties.
The blockchain is “decentralized,” meaning it is not controlled by one central authority or governing body. If you’re worried this is not safe, don’t – the blockchain is tamper-proof. Since the information is distributed among various platforms, the system is nearly impregnable against hacking. The larger the network, the more secure the blockchain.
If a user wishes to access any bit of information, it needs to be verified at multiple check-points. The way this verification will work is through one-way mathematical equations called hashes. When a new block is created, all of its data is hashed, sometimes even multiple hashes are added. This type of hashing associates certain data information to a unique result.
Each hash is unique and must meet certain cryptographic conditions. Once this happens a block is completed and added to the chain. In order to tamper with this, each earlier block, of which there are over half a million, would require the cryptographic puzzles to be re-mined, which is impossible.
These results are verified by nodes at each point on the network by re-running the same mathematical equations with the same inputs and confirming that the output matches exactly. If the output doesn’t match what that tells the node is that the inputs don’t match, error or fraud is detected.
Blockchain is hence a layer of security that keeps data and information secure from the threats of modern technology. For business, understanding and perhaps implementing blockchain into your processes may be an undeniable necessity.
If you want to learn more about blockchain, click the link below for more information.