What Is The Blockchain?
If you are not familiar with the term “blockchain”, then here is some information to get you started. Simply put, a “blockchain” is simply a group of computer networks that are linked together and all the data within the chains is considered valid by all computers on the system. It is like the “underground railroad” network that allows us to move from one point to another quickly and efficiently without having to actually walk through the tunnels.
An “blockchain” is not actually a database at all, but rather it is a way of managing the transaction and confirmation process for various different types of currencies and assets. Basically, anyone can create a “blockchain” by recording certain transactions on their computer – essentially creating a digital logbook of sorts. In the future, this digital logbook will allow people to trace back the various transactions that have taken place and will provide them with proof of the validity of said transactions. In the mean time, the “blockchain” acts as a ledger, recording all the activities related to the ownership of various assets and money on the global scale.
There are several reasons why someone would want to use the Blockchain technology. Some businesses are beginning to explore new methods of doing business online – which includes using the protocol to manage their transactions and secure their clients’ data. This also allows for the central authority to add new features to the ledger which will allow for easier transaction approval and confirmation and will lower fees. Another reason for using the Blockchain technology is because it lowers costs, which is especially important for those who are doing business on the global scale.