Blockchain Technology

Dec 14, 2020

Over the last decade, as more and more technological resources become publicly available, payment systems are still trying to catch up with other trends in the technology market, competing with one another. This is where blockchain comes in mind. Blockchain technology, still in its early stages, is changing the way payment systems are handled by sending electronic signals between multiple devices. Blockchain makes the history of any form of digital asset transparent by the adoption of decentralization and cryptographic hashing. Blockchain technology can be a revolutionary technology by helping reduce risks, stamp out fraud and bring transparency in a scaleable way for myriad uses. Blockchain subsits of three important concepts: blocks, nodes, and miners.

Blocks

Every chain subsits of several blocks, where each block has three basic elements:

  • The data in the block
  • A 32-bit whole number called a nonce. The nonce is randomly generated after each block is created, and generates a block header hash.
  • The hash is a 256-bit number wedded to the nonce.

      • When the first block is created, a nonce generates the cryptographic hash.

      Miners

      Miners conceive new blocks on the chain over a process called mining.

      Miners use a special software for solving the incredibly complex math problem from finding a nonce that generates an accepted hash. Making a change to any block earlier in the chain requires re-mining not just the block with the change, but all of the blocks afterwards. When a block has been profitably mined, the change is accepted by all of the nodes on the network.

      Nodes

      The most important concept in blockchain technology is decentralization. No device or organization can own the chain. It is instead distributed via nodes, which are connected to the chain. Nodes are electronic devices that maintain copies of the blockchain for keeping the network functioning.

      Every node has its own copy of the blockchain and the network accept any newly mined blocks for the chain to be updated, trusted and verified. Each participant is given a unique alphanumeric identification number that displays their transactions.

      How Blockchain Technology Works

      First and foremost, the user requests a transaction in the system, which represents that the transaction is closed. Afterwards, the block is broadcasted to all of the nodes relucant on the network. All of the nodes validate each specified block & transaction. Next, the block is added onto a chain, where other individuals recieves a form of payment. Final step, when the transaction gets verified, the user which requested the transaction receives their payment, and the transaction has been completed. Essentially, blockchains can be thought of as the scalability of trust via technology.

      blockchain

      The Future of Blockchain Technology

      As more and more companies start to adopt cryptocurrency as one of their primary source of payment transactions, obtaining the resources for blockchain to operate has become more readily available. The government predicts that by the year 2030 most corporate companies will adopt or create any form of virtual currency. A few of the most valuable companies including Amazon, Alphabet(GOOG), and Microsoft are adopting changes to the payment methods for clients. The modern state economy is based on long transitions, towards an all digital business that fully relies on online connections. Blockchain technology adequately reduces each cost of transaction. This represents trillion-dollar firms being replaced by trillion-dollar tokens. It is still unlikely that by 2030, a solution to the current existing payment plans can resolve data and privacy concerns from the digital age era. Blockchain Technology has improved in speed and preformance thanks to the current infrastructure, making each connection more secure.

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