The 2008 global recession was hitting hard on a lot of people and people were blaming the banks for being the cause of the recession. In all this, an unknown person or a group of people named Satoshi Nakamoto came out with a white paper for a cryptocurrency that could not be not be influenced by a centralized system. The currency was built on a technology called the blockchain technology.
What Is Blockchain
Blockchain is the technology where most cryptocurrencies which are over 1000 are being built. The blockchain is a decentralized continuously updated record/ledger which stores data of transaction, which cannot be changed. This data are stored in blocks which are available to everyone to see and it is a distributed ledger. As at the time of writing, the blockchain is believed to be strong and cannot be hacked or tampered with due to its distributed ledger and consensus. The blockchain has been able to solve the double spending problem on cryptography.
The blocks in the blockchain contains data and they are linked together with tags known as harsh, the harsh of the previous blocks and the next block are linked together. The blockchain is stored in a pair to pair network making it difficult to be tampered with.
Importance of the Blockchain
Creation of DAO: Unlike in the past when a centralized rule which can be tampered with is needed to in running a company, with the blockchain, it only requires contracts on the chain which means people involved do not have to trust one another before doing business, they only have to trust the blockchain contract and with that it is decentralized and autonomous. It is an organization that runs in a decentralized world.
Smart Contract: The blockchain has helped people to create contracts that can’t be tempered with. This contracts are created based on the agreements between two parties and there are no need for lawyers, it only requires coding on to the blockchain, so people trust the smart contract and not the people in the contract.
Cyber security: Unlike the previous years when people are scared of their getting their networks and data tampered with but with the blockchain, people only have to be concerned about their keys and accounts and not the blockchain or the information in it.
The Blockchain is going to be the next generation internet and it will be adopted by a lot of government agencies and businesses in the nearest future.