In recent years, the popularity of Bitcoin has increased exponentially. Everyone who never had heard about it or knew but never gave any attention to it got shocked when the value of Bitcoin hit an insanely high $16k per Bitcoin. And with that, the Winklevoss Twins, the ones who sued Mark Zuckerburg became world’s first Bitcoin Billionaires! It was said that upon getting the amount which they won in the lawsuit, the Winklevoss twins had bought about 11% of the total Bitcoin in the digital market at that time.
At this point, we have to assume that you know or at least have heard about Bitcoin and are familiar with it. But how does it relate to the topic at hand? Well, with the advance of digital currency, the need for a trustworthy and completely transparent system for storing digital currency records arose. That gave birth to what is called as “Blockchain”.
Blockchain is one of the hottest topics today. Everyone is trying to know what it is, how it works and does it have a future. While the answers to those questions shall be answered in this article, first and foremost, the very concept of Blockchain is what we shall try to explain to you in easy words.
Imagine that you are with three friends –A, B, and C. Each of you have $20. Now, A decides to give $10 to C who then forwards $4 to B and $5 to you. Normally, without Blockchain, you would have needed a third party who would have taken a bit of fees as well and the whole ordeal would be time-consuming as well.
Human beings are always considered to be the weakest link in the security chain. That is mainly because we are corruptible. What’s to say that C hasn’t made a backdoor deal with the third party and has been earning a profit? Or that the third party is biased and doesn’t keep the full records?
Blockchain is your answer to these problems. It presents a completely transparent, open, distributed record system and with it you can remove the third party from the chain all-together. The ledger or records remain with each and every member of the system. This eliminates any chances of fraud as everyone has access to the records and can track or see the transaction in progress. There is no curtain. Moreover, since every party contains a record of transactions, should the system be under attack, it would be difficult or nearly impossible for the attacker to corrupt each and every record present with individual parties.
Bitcoin was only the start of Blockchain. One can easily imagine, if Blockchain can be used to keep records of transactions, then why can’t it be used to store data? That is what has driven the IT industry in the recent days. Blockchain is here and is here to stay.