The Truth About Blockchain Technology

Blockchain technology is not new anymore. Blockchain technology and Cryptocurrencies are a conversation starter among entrepreneurs and other players of the financial market. Blockchain basically is a kind of technical ledger which stores types of information in a series of blocks. A block in the chain is created every time a group member of that particular blockchain adds new information, reconciling the previous data with the same. The data in a block is encrypted through an irreversible hash function allowing only users with their private digital signature to see the entered data and verify it. Here, a hash function is mathematically entered algorithm. Also, each block has their own unique hash function which connects with previous data or block. And these entered transactions are without any third party consent enabling total security and no manipulation of data. Through this kind of blockchain development, a developer earns cryptocurrencies such as BitCoin and LiteCoin. Bitcoin is the gold of cryptocurrency which value has increased exceptionally high, creating speculation of “Bitcoin bubble”. But another benefit of blockchain development is that it’s unregulated, meaning there is no blockchain server which further falsifies the earlier speculation. And its also because manipulation in data is impossible by a single user. The blockchain is not just likely to stay in the market but it will be the base of future record keeping and financial transaction. On top of all these, blockchain preserves the anonymity of each user, making the cryptocurrency and information both for people, by people.

Blockchain Developments: Blockchain Technology

THE PURPOSE OF BLOCKCHAIN DEVELOPMENT

Whatever the trend may be, speculations and story of Satoshi Nakamoto being a group or a single person are not important in blockchain development. What is important in blockchain development is keeping information or transactions open to all. The level of security yet transparency it provides has revolutionized the record keeping system in many sectors such as the financial market, Voting system, Securing IPR, supply chain management of information, and others. Verifying each transaction in a block by the user of that particular blockchain is by far the strongest method for decentralized record keeping. Strongest in the sense of its availability of secured and authenticated information.

The pillar of every economy, its banking system has lost trust from the general public after the 2008 financial crisis. Banking system works and keeps the records as they deem fit, and this system is now easily manipulated by hackers and others. Blockchain eliminates this issue by making information as a public ledger to whom, who is part of the system. Another part which was mentioned earlier, the secrecy of each user is well maintained hence, information cannot be manipulated by a single or even two users together because computing power of fraud users has to be more than 51% of the total. Various banks around the world keep their own ledger and are updated manually on daily basis, making the whole process complex and slow, but blockchain development keeps each record reconciled with previous records automatically with just two hash functions. This function of blockchain development can eliminate the problem of the cross-border transaction in the banking system of the world as well.

Recently, A Japanese city Tsukuba has done a pilot test for the blockchain based voting system. This is one application of blockchain technology, for other areas as well blockchain technology is being proven as strongest peer to peer record keeping system.

Image Source: Google

BUILDING A BLOCKCHAIN OR CHOOSING EXISTING ONE

Mainly there are three ways an organization can be benefited through blockchain development services. The system called DApp (Decentralized app) is used to build apps which enables blockchain technology. DApps are open-source, autonomous, cryptocurrency-based apps whose backend is a blockchain. There are three types of DApps, Type I which includes building a blockchain from scratch, Type II includes building an app using known blockchain like Ethereum and Type III includes building an app or plug-in which connects with other blockchain apps and plug-ins. Choosing the method to use blockchain development are based upon the needs of a person or an organization. If your website or app require massive data management, choosing Type I would be a great option. If your requirements are addressing a problem with concrete blockchain solutions, choosing Type II & III would be a cost-effective tool. Methods to develop a blockchain also has its own requirements such as building a new blockchain platform require huge community building and it’s also difficult plus time-consuming. Through Type II & III approach you have the benefits of the already existing community.

No doubt cryptocurrencies are the future of financial exchanges but the underlying technology the blockchain development is the revolution which is going to change all countries transaction and information maintaining system.

We hope you have found this article informative and interesting. For more information or queries visit blockchaindevelopments.io and know more about this technology. You can also contact us or send us an email at sales@blockchaindevelopments.io

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