By now you have probably heard all the buzz around cryptocurrency. But, how much do you know about the technology behind the phenomenon? The global blockchain market size is expected to grow from $3.0 billion this year to $39.7 billion by 2025.
Here are five relevant facts that you should know!
1. It is not ‘the’ blockchain
Blockchain can be implemented in different ways; there isn’t one, there are many. It is not a product or a single software program. Blockchains are distributed, public ledgers of transactions that are tamper-proof. The most well known use of blockchain is Bitcoin. Blockchain can track cryptocurrencies, record loans, contracts, votes, and more.
2. Secure and transparent
Because of the decentralized nature of blockchains, information on it is secure and extremely difficult to tamper with. Multiple computers or nodes contribute transactional data in real-time, and all have a copy of the latest version of the chain, and this history of the previous version. Because every node has a copy of the chain, hackers would need to tamper every situation. After every latest transaction, a new block of data is added to the chain, then, every node in the ecosystem gets an updated version of the chain.
3. There are no intermediaries
Blockchain allows participants to bypass traditional intermediaries such as banks and brokers who usually verify and validate an asset’s release by letting participants transfer assets to each other. Its transactions are processed with an algorithm through its decentralized network of nodes.
4. Types of blockchains
Public blockchains are open source and fully decentralized, meaning that anyone can participate as miners, users, community members, or developers. Still, because of the large number of participates, it takes a lot of time to verify transactions. Bitcoin is a great example of a public blockchain.
Private blockchains, also known as permission blockchains are centralized, and those running it has significant authority over who can participate. This is useful for organizations that do not want to collaborate on the network but do not want sensitive data in a public blockchain.
Hybrid blockchains attempt to use the best elements of a public and private blockchain. It enjoys the transparency benefits of a public blockchain, while also taking advantage of privacy benefits. Members in the blockchain can decide who can participate in the blockchain, and what information is made public.
5. Blockchain can be used to fight censorship
Many governments use censorship to monitor user activity on the internet, keep tabs on what they are viewing, and limit access to certain content. Because of Blockchain’s decentralized nature, it has risen as a potential solution to prevent censorship by a third party so that publicly expressed ideas can’t be erased. Using Blockchain will make hacks harder to deploy, private messages difficult to unencrypt, and content harder to remove off the internet.