Bitcoin has its ups and downs but from its emergence, blockchain made its presence known. While the cryptocurrency endured a difficult reputation as a legitimate currency, blockchain technology witnessed the complete opposite.
Blockchain is formerly associated with cryptocurrency Bitcoin as its record-keeping technology. The technology soon gained traction due its simplicity and high security countermeasures.
A blockchain is a data component shared across in computer network. It acts as decentralized digital ledger to register access to the records.
The database is made of 3 components to make up the complete blockchain.
Record: Information such as transaction, records, data, and others
Block: A bundle of records
Chain: Block linked to each other
How Blockchain Works
Blockchain adds extra layers of security to all information transmitted between different parties in the network. Take for instance, the conventional interbank money transfer illustrated below:
While the transaction is fairly straightforward, information at the point of entry such as the amount is tamperable. This may incur unwanted monetary loss in the account.
Blockchain In Action
In contrast, transactions carried out using blockchain is more secure. This adds enhanced countermeasures against undesirable incidents.
As the information on blockchain is shared across a complex network, it cannot be easily manipulated by external forces. In addition, should be hash codes failed to be paired correctly, it will be result in failure. The complicated working of blockchain and its underlying mechanism act as a combo to deter data leaks.
Blockchain & Tamper Detection
Blockchain is also backed by additional security feature that contributed to its hype. For data output to complete, the hash codes must match between parent block and new block. Any small changes made to the content of the block will also change the hash code. In consequence, any changes to the block will also change all the subsequent blocks. This made tamper detection significantly easier as the inspection can be made at any point without identifying the source of problem.
Value in Blockchain
Blockchain adds value to emerging and prominent technologies for greater end value for consumers. To bring its power to full potential, training can help employers and associates in integrating its power to IP in developments.