Blockchain is the base of all cryptocurrencies. Blockchain technology which functions as a ledger that cannot be altered, allows transactions to be executed in a decentralized manner. There are so many applications which are developed based on the blockchain technology. These applications are used for different services across various institutions such as banking, medicine, aviation, manufacturing, employment and recruitment, internet of things and many others. Blockchain technology is the network that has made financial transactions and services much more efficient and effective. Though, improvements of the operations in the financial sector is just one of so many benefits obtainable from a proficient utilization of the Blockchain technology. Experts of this technology predicts that the future which will be driven blockchain technology is looming.
A blockchain comprises of individual blocks. Each block within the blockchain is simply a pool of data. These data in each block is then summed up in the blockchain, by linking it with the other blocks in a chronological pattern, thus, producing a chain of blocks that are connected to one another. The Genesis Block is the first block that is developed in a blockchain. In other terms, Blockchain is referred to as a circulated ledger, this simply implies that within a blockchain network, the ledger is distributed among all members of the network, hence, ensuring that all members possesses a copy of the entire ledger.
There are certain key features of Blockchain technology that indicates its superiority over any conventional system of ledger information storage. These key features includes;
Peer-To-Peer: There is no monopoly of data within a blockchain network. No participant has any authority than others or claims ownership of the data in the blockchain. There is equal access to all information to all participants. This ensures that the transfer of data among members of a network is executed without the involvement of any third party.
Distributed: The altering of ledger is restricted with the use of blockchain as it allows access to all the whole network.
Cryptographically Secured: The use of cryptography in blockchain networks ensures that it is secured and invulnerable to theft and hack.
Add-Only: In a blockchain technology, a sequential order is applied for the addition of data. This feature indicates that it is impossible to alter any data that has been added to the blockchain network.
Consensus: This feature of blockchain is the most crucial of all. The update of data in a ledger is only achieved under a consensus. This is purely the efficacy of decentralization. This feature ensures that no individual possesses the ability to control and update the ledger without the knowledge and permission of other members in the network. Rather, the blockchain technology ensures that any altercation made on the ledger is only added to the blockchain after a consensus has been made by the peers or nodes on the network.
Blockchain is forming the basis of almost all operations in different areas. Smart contracts are also designed using the blockchain technology. However, due to the high security provided by blockchain, it is often used as a tool for fraud by miscreants.