What is the blockchain?
When blockchain came into existence, not many people knew or understood what it was. It was invented by
the great minds behind the Bitcoin cryptocurrency. The Satoshi Nakamoto name. No single person knows who
the name represents but sources (Wikipedia) say that he was born in Japan or it could be a group of people
who came up with the name to disguise themselves. But since 2008, blockchain has really evolved and most
people have come to ask a lot of questions about this term -blockchain.
So, what is the blockchain?
Blockchain technology is the whole new magical invention in today’s internet. In the world today, we have had
numerous inventions in the fields of medicine, physics, chemistry, space and many others but disregarded the
internet as a place that we could invent a revolutionary technology. This new invention known as blockchain is
changing businesses organizations, trade, finance and how the world works. Soon, it will be ruling the world
due to its immense advantages.
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What Is The Blockchain? And How Does It Work?
This simple down to earth description will help you to understand what it really means.
Let’s say we have person B who wants to make a transaction from point A. Person B real name is Bobby.
Bobby requests a transaction. The authorized transaction requested by Bobby has broadcasted automatically
to a well-integrated peer-to-peer network made up of nodes. Nodes are a group of computers interconnected
to help a transaction request be executed. These nodes ratify the transaction made by Bobby and also the
user’s credentials using certain numerical numbers known as Algorithms.
When the transaction is verified, it involves the cryptocurrency i.e. Bitcoin or Ethereum, financial records,
contracts and other additional information of importance. The process of ratification allows the transaction to
enter a new block of the ledger where it is combined with other transactions that have taken place around the
globe. The newly connected ledger is connected and fixed permanently to the pre-existing blockchain.
This newly formed chain of blocks cannot be altered, changed or manipulated by anyone. Not even a central
authority such as the central banks which alter other forms of currency. At this point, the transaction made by
person B is complete.
Advantages of Blockchain Technology
1. Uncontrollable And Independent – Blockchain is not controlled and cannot be controlled by a central
authority example the Central bank. There is no existing mediator or middleman, in which mainly it’s the banks
involved. The blockchain works as a single entity. It syncs data, verifies transactions and processes
everything independently. This feature makes it intangible by the organizations’ members and heads i.e. the
CEOs and managers and thus creates a sense of security among the beneficiaries of the system or
organization using the blockchain technology.
2. Has no risks associated with failure – There is no instance that one can predict a failure in the Blockchain
technology since it utilizes a decentralized network that does not endorse manipulation.
3. The blockchain is transparent and incorruptible– It has so far solved the problem of manipulation that had
faced the internet industry for such a long period of time. The blockchain is the new in-thing that cannot be
hacked or money lost in a careless fraud. The blockchain is embedded in a public framework with no hidden
blockchain. The existing blockchain is what that makes the entire system works meaning its on a public
4. Ease of record keeping – As soon as the blockchain was invented, it eliminated the tedious record keeping,
paperwork and headcounts. The traditional method of record keeping involved too many costs and manpower.
5. The blockchain enhances security – The blockchain enhances security in that each transaction must is by
each of the group of computers called the nodes for a single transaction to be termed as valid. In order to
hack the blockchain, the hackers are supposed to hack every single node or computer in the blockchain so as
to get into the system which in our humble point of view, it is impossible.
6. Cheaper Maintenance – an Electronic type of ledgers such as the one used in blockchain are cheaper to
maintain than the traditional accounting ledger systems. The blockchain eases the work done.
7. You are the Controller – The blockchain technology allows its users to be in control of their transactions and
all their information. You do not have to go to the bank or any other place to sell your information or ask for
any assistance. In the blockchain technology world, you are your own manager.
8. It is Fast – It is good to note that transactions made through blockchain technology are usually delivered
much faster than any other type of payment method. The first reason is that there is no existence of a central
authority that will consume some of the time required, secondly Its transactions have a 24/7 processing time
and are usually of high quality and consistent in nature.
9. Lower Spending on transactions – Using the blockchain technology eliminates the existence of third party
involvements such as the banks, middlemen and many other people who stand on the way between a
consumer and the organization or trader. This reduces the costs a great deal since each block or middle-man
will request for some money to allow access.
What is the blockchain?
Is the blockchain technology in use?
Since its inception, the blockchain technology has increasingly being adopted by many organizations which
want to improve their security and enhancement of record keeping. A number of industries including the
shipping industries, healthcare sectors, energy industries and Fintech are one of the notable industries
utilizing blockchain technology.
The blockchain technology is increasingly being adopted by each member involved in the supply of goods or
transactions in an organization can monitor the progress of transactions involved through their preexisting
Limitations of the Blockchain
The blockchain is complex – The complexity of blockchain makes it very non-understandable to many people.
Despite the numerous lessons and tutorials available online on how blockchain works, people still do not get
it. Its complexity makes most people refrain from it rather than attracting more people towards it. It makes it
seem best for the tech gurus only or those who understand technology.
Technology and Politics – Politics have greatly affected thriving inventions such as blockchain and many
others over decades. The kind of policies outlawed for the regulation of bitcoin are overwhelming with some
making some of the inventions collapse i.e. the e-gold Ltd. Some countries have already banned or refuted
the involvement of cryptocurrency in their nations. This informs you of the heated politics that is facing the