How does Blockchain Technology work?
Blockchain Technology is an advanced high-tech used by companies like IBM, Microsoft, Intel, Walmart, etc for trading purposes. From performing a transaction to its completion and storage. The steps include:
- Making a new transaction.
- The data is transmitted to a set of computers.
- The computers enquire and audit the validity of the transaction.
- After checking the genuineness, the transaction is verified as a complete transaction.
- The data is stored in a block which then synchronizes with the other blocks of information and makes a blockchain.
The data is stored permanently and the transaction is stamped as a legitimate transaction.
Pros & Cons of the Blockchain:
- Decentralized for safe transactions
- No third-party needed
- Private & secure data
- Is transparent & reliable
- Maintains the confidentiality
- Low transactions per second
- Use of illegal activities like the dark web
- Data storage can be a problem
- High technological cost
- Takes longer than traditional methods
The Types of Blockchain Technology
- Public Network: It means the network is open to the public and anyone can join the network to perform the transactions. For example- Bitcoin.
- Private Network: Here, there is one governing body that can choose whether one can join the network or not. It boosts people’s trust as there is someone to monitor the transactions. Everything here is also decentralized like other blockchain networks.
- Permissioned Network: It is like a private/public block network where one needs to seek permission to join the network. The owner has the authority who can join and perform the transactions.
- Consortium Networks: It is like an organization having multiple stakeholders/partners that are willing to join the network. Everyone has to join by taking permission to conduct the affairs.
Blockchain technology has emerged as a keeper for the people dealing in Bitcoins and Cryptocurrencies. It has made the transactions safer, reliable, and easy to perform. Today, we have stepped into the third decade of Bitcoin, and many organizations use this technology for trading purposes. Some of the key takeaways from this blog are:
- A blockchain is a set of data that is stored in the form of a block and is then assembled with the other blocks of information.
- It is a safe and decentralized form of data storage.
- Bitcoins and Cryptocurrency transactions are performed using this advanced technology.
- It does not require a third-party vendor to perform the transactions.
- Blockchain Technology maintains transparency but comes with high costing.
Stay tuned with Inthera to learn more about such trending topics. Subscribe to our email newsletter today!