Blockchain Technology - How it Works and Why You Should Adopt It

By CIOReview | Friday, November 24, 2017

Blockchain technology refers to a distributed online network of that supports a database of transactions. This interface may be shared by multiple users. Every user of the network holds a copy of that database, which records a cluster of information. Each record of transaction bears a link to the previous transaction and the database is updated in real-time, for instance every 5-10 minutes, thus implying that the database is almost impossible to get lost or corrupted. E-wallets are built on this concept of purchasing products or services with cryptocurrencies. One can also transfer money using these bitcoins to another individual.

Why choose Blockchain Technology?

• No third-party

The immediate benefit of making transactions using the blockchain technology is that it reduces middle-man intervention. If a person wants to send money to someone, the process requires involving a trusted third party; a certain amount of fee is charged. In addition, it takes two days at least for the transaction to be completed. On the contrary, paying someone using the blockchain technology does neither involve any third party that is likely to charge a fee, nor does it take a lot of time.

• Security

A successfully completed transaction using bitcoin shall be marked as ‘Read’; while in case of failed transactions the detail will be recorded as ‘Write’ and considered as a ‘Block’. In case of the transaction failures, the respective participant will be asked for the validation of the transaction and to permit the block to be added to the database. The records are impossible to manipulate as the manipulator needs to change the records of all other participants if he wants to change one record.