Understanding Blockchain

Understanding Blockchain

Bitcoin was the first cyber currency to be introduced in 2009. Since then many others have been introduced and though the future looks bright, there i

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Bitcoin was the first cyber currency to be introduced in 2009. Since then many others have been introduced and though the future looks bright, there is no certainty. One of the reasons why Bitcoin has become popular as it is today is due to the technology with which transactions are handled. Blockchain is rapidly evolving and is likely to keep growing. The use of bitcoins is likely to see its incorporation in various industries and niches thanks to the great features the blockchain has to offer. But what is this blockchain?

Simply put, blockchain is a system that works to create and keep a decentralized record of all the digital currency transactions made. These records do not need to be input from any controlling entity. On blockchain, you can be able to send and receive digital currencies; bitcoins and others. This is a public shared ledger which keeps track of all transactions; confirmed or not. This way, people sending bitcoins can know how much spendable balance they have and spend only these. It is important to note that once a bitcoin transaction has been verified it cannot be reversed. The block chain aids in this verification.

The only problem with blockchain is that it cannot be accessed by just anyone. The only people who can exchange digital payments are those on the same blockchain network. People on the same network are responsible for securing their transactions. They determine what rules and approved procedures are to be followed.

To determine whether a transaction is legitimate or not is also up to the people in the network. If someone tries to make a change in a ledger entry, the others in the network have the power to disagree which in turn refuses the transaction to be incorporated into the blockchain. This means that the transactions processed by blockchain are secure and reliable. But it relies on others rather than a central control entity. This could be a good or bad thing depending on how you look at it.

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