What is Blockchain Technology

Financial institutions worldwide are looking at how they can use blockchain technology to break everything from settlement and clearing to insurance. But you may be asking yourself, what is the big deal about this technology? These articles will clarify all these matters and what you need to do about it.

Basically, if you hear the term "blockchain", it's a computer network composed of a group of computers that each have a unique account balances. Every node is required to participate in this global ledger to process every transaction that occurs. Blockchains were created for the purpose of allowing people to perform monetary exchange without any third party interference. If every single node on the network participates, then it becomes very difficult to tamper with or manipulate the state of the ledger itself.

The most popular form of the decentralized ledger is a public chain. In this case, every single node acts as a validator and verifies every other transaction performed by every other node in the chain. As a result, the entire system balances out in favor of the participants. Since there are no double-spreads or third-party intermediaries involved, this type of ICO is more secure than anything ever dreamed of. However, the very foundation of this technology also lies in a distributed ledger technology.

At its core, distributed ledgers are ledgers designed for financial applications. Distributed ledgers make use of a technique called Proof of Work to secure the transactions which make up the ledger. This process of securing the transaction through a proof of work system is quite complex. In fact, it has been considered one of the major innovations of the entire Internet. This was further developed into an open source project called BlockApps in the year 2016. At the moment, the project has over 60 contributors from several different industries all over the world.

Types Of Blockchain.

  • Public
  • Private
  • Hybrid
  • Federated

However, even though BlockApps is the latest release of the Blockchain technology, it is actually just the first of what will be several upcoming projects. The next major innovation to come out of the project is a software application known as Corda. This software will enable distributed teams of real experts to work together on big projects without having to worry about technical issues. The application allows these teams to collaborate on a shared data repository. In addition to this, the group can also easily configure rules and guidelines on how groups can communicate with each other.

Another upcoming product called Consensys is a software solution that will allow companies to track the health of their financial services chains using the Blockchain technology. The product will allow companies to easily view the entire chain of the company through its central control. It will also allow users to determine the risks associated with the chain and take appropriate actions to remedy them. In addition to being able to track the health of the chain, Consensys will allow for the sharing of risk management information between various operational groups.

A new solution called Enterprise Ledger is also expected to be launched in the near future. This solution will allow for real time recording and execution of transactions in the supply chain. This technology may significantly improve the efficiency of the supply chain and may pave the way for greater use of the Blockchain technology in business.

This was the main article on how the Blockchains will change the world. There are several other applications of the Blockchain technology such as the ones mentioned above but there are still many more to come. For more information on how the Blockchains can change the world, subscribe to my articles.

Blockchain technology