What is Blockchain ?
Blockchain is peer-to-peer software technology that protects the integrity of a digital piece of information. it was invented to create the alternative currency Bitcoin, but may be used for other crypto-currencies on-line signature services voting systems, and many other applications. In this post we explain how blockchain works and what makes blockchain special Everyone uses paper money.
How Blockchain works ?
When you get a $10 bill you trust that it’s not fake. if instead someone sent you an email saying: here is $10 you probably wouldn’t trust it. But when we transfer money use an ATM or pay with the deposit card that’s pretty much exactly what we do. We’re sending money in a digital message. To make sure no one’s cheating or sending money they don’t have, these “messages” go through a few trusted banks that keep a record of everything.
They know how much money everyone has and deduct it properly for every transaction. But this becomes expensive when there’s a million transactions around the world, every minute.
The economist estimates that banks charged us more than $1.7 trillion to process these payments in 2014. That’s about 2 percent of the entire world economy! With Blockchain we can save a lot of this cost, because it lets us send money just like sending an email. Instead of sending a lot of payment information through a few servers, Blockchain uses thousands of personal computers on the Internet.
What is makes Blockchain Secure ?
How blockchain works and makes blockchain secure is All transactions are copied and cross check between every computer in a systemwide accounting book called The Ledger, which becomes very safe at scale. Blockchain doesn’t just allow us to create safe money online, it lets us protect any piece of digital information. This could be online identity cards, voter ballots, contracts and many other legal instruments, bringing bureaucracy into the 21st century.