Why is Blockchain Technology necessary?





Blockchain has become a trend in recent years, and more and more companies and governments have begun to use it. - Article authored by Kunal Chowdhury on .

There are many arguments to defend blockchain technology, starting with indicating that it is a platform representing a solid, reliable, and transparent base that is becoming the best way to carry out personal and corporate transactions or commercial exchanges. In addition, it is challenging to alter, giving it an added value attractive to many. If you are interested in Bitcoin, you may have noticed the high valuation of Bitcoin, which has attracted many investors and speculators.

 

Why is Blockchain Technology necessary?
Why is Blockchain Technology necessary?

 

It is a distributed and secure database that creates other data networks in real-time, allowing Blockchain applications to execute a fast and transparent exchange of information between different parties without needing a third party to guarantee its integrity.

 

Undoubtedly, it is a technology that allows people to create and operate distributed economic systems, where intermediaries are eliminated, and trust is maintained in a shared database.

 

Decentralization, speed, and transparency make Blockchain a technology allowing users to generate and maintain a public, decentralized, and sustainable ledger, where distributed consensus enables users to review online transactions

 

 

The first use of Blockchain technology

It was introduced to the technology and finance industry as a platform for creating Bitcoin, but now it has become much more than that. Unlike centralized systems controlled by a single entity, blockchain technology is decentralized and allows anyone to access your data.

 

Its primary use in the digital financial market is the exchange of values, such as Bitcoin. Blockchain technology is based on the idea that users can validate and record transactions without an intermediary approving and verifying the transactions.

 

 

Blockchain technology was first used in 2008 for the exchange of Bitcoin, the leading digital currency of cryptocurrencies, when the hitherto unknown Satoshi Nakamoto, a developer or group of developers, who created this virtual currency after the outbreak of the crisis economy in the United States, with the idealistic goal of replacing money.

 

Its functionality was based on using a peer-to-peer (P2P) network; users could transfer bitcoins among themselves without resorting to an intermediary.

 

It is no secret to anyone that the first application of the Blockchain was in Bitcoin technology. This cryptocurrency is fully decentralized and is based on a shared transaction record. The system allows quick and free payments between users without using traditional financial institutions.

 

 

Blockchain applications in everyday life

The Blockchain is a technology that allows people to exchange goods and services directly and transparently, establishing efficient communication between users to carry out economic and financial transactions without requesting the participation of third parties or external intermediaries that serve as prosecutors.

 

Not only the Bitcoin cryptocurrency can apply blockchain technology to create a shared record of transactions, but anything that needs a record that cannot be tampered with by a single person.

 

This technology is present in many aspects of our daily lives without our realizing it. For example, when you make your purchases online with your credit card, the money is transferred directly from your bank account to the company from which you purchased a good or service.

 

 

Blockchain risks

Although not everything is rosy, the Blockchain also has its drawbacks; among them, we can mention that it does not have an integrated payment system, so you have to make two transactions to make a single sale; In addition, its speed is lower than that of traditional credit or debit cards.

 

Blockchain is a technology still in development, and only a few companies have implemented it, possibly due to its high purchasing cost. The big problem with this type of technology is that it cannot be controlled entirely since it is a distributed database, meaning anyone can publish information. For this reason, transactions carried out on the network are permanent and cannot be deleted or deleted.

 

The main characteristic of the Blockchain is that the data registered in it cannot be modified, so it is a secure protocol against attacks. However, this also means that this will be detected and reversed if someone manages to access and tamper with the database.

 

 

Conclusion

Blockchain has become a trend in recent years, and more and more companies and governments have begun to use it; where its main characteristic is its immutability, which means that it is protected against modifications and can be used to record all kinds of data or operations.

 

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