Now a days everyone must have heard about the term Bitcoin, and a few of them must have some bitcoins with them and have pursued some transactions with them. It has gained popularity since it works without a central repository or administrator which is not the case in traditional currency. Now a major question arises, how are the transactions verified in such a case. It is where the blockchain comes into play. Now a question may come to your mind what is blockchain technology.
The blockchain is a list of records also known as blocks that grow continuously. It is a digitized, decentralized, public ledger of all cryptocurrency transactions. It makes use of a distributed ledger technology (DLT). These are linked to each other and are also secured with the help of cryptography. In it, the most recent transactions are recorded and added to the blocks in chronological order and also allows its participants to keep track of their digital currency transactions without the need for central record keeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
There is a great debate going on nowadays as to whether the blockchain is a fad or is really going to change the world. Before diving into the question, it is necessary to understand the fact that Bitcoin and blockchain are two different concepts. Although originally it was developed mainly as the accounting method for Bitcoin it can be used to accompany some other industries as well. Apart from that, it is also necessary to know about the problems in the traditional ledger methodology and the blockchain ledger methodology. Apart from that, it is also necessary that you have a proper idea of the same. Along with the same, a look at the current scenario can also help you deduce about the benefits of the blockchain.