What Is Block Chain and Why You Should Care About It
Block chain comes in to existence with the with the invention of world’s first crypto currency “bitcoin”.
Bit coin is the first crypto currency of world that was introduced on 31 October 2008. It was releases as open source- software in 2009. It was introduced by satoshi nakmoto. After the success of bitcoin, a lot of crypto currencies were introduced in world. Today there are more than 700 crypto currencies in world.
All the crypto currencies work on block chain technology. So, let’s first start with understanding what block chain is?
Block chain is like a chain of block, each block represent a record of exchange. Block chain is actually a distributed database that maintains continuously growing list of records and each record is called block.
Each has a timestamp and a link to track previous block. We can understand block chain technology with the help of an example. As most of us usually deal with paper currency in our daily life. We continuously do exchange of paper currency but did we ever maintain any record of paper currency. Like I have given 50 dollar to Mr. X, and later Mr.X has returned the 50 dollar to me, and I give it back to grocery shopping. And the shopkeeper further gave that same paper note to stationery shop. And stationery shopkeeper gives that 50 dollar note to me for in exchange of any need. But is there is someone who is maintaining record of all these transaction. Probably no one is maintains such record of each transaction.
But block chain technology maintains record of each and every transaction. Data stored in block chain cannot be modified or altered. It’s like a open, distributed ledger that maintains record of transactions between two parties efficiently. And also in permanent way. Block chain are having secure design so it cannot be copied neither altered nor modified.
Even when someone tries change the information stored in block chain, the hash will appear different and it will easily detect the changes.
Why We Should Care About Block Chain Technology
As we have understand that block chain in the technology used in crypto currencies, so obviously it involves a financial matters and it needs to handle with proper attention. Block chain is applied to a wide range of applications, like from property management to contracts. As it’s much secure way to handle your financial matters.
As we know that bit coin is open source digital currencies, which have driven a great change to economist and technologist involved in banking. A crypto currency is safer than any other currency and also it’s a highly growing in value. Many investors find it’s a good way to earn handsome return on their investment.
It also opens a way a of a way for the people who do not trust each other, as block chain maintains a record of each and every transaction.
Yet we do not advising anybody to use these crypto currencies if you do not have any customer base requirement or if you don’t have enough knowledge about it. No doubt that it’s quite safe and there is no need to worry about any safety and security features.
We expect that block chain system will become more common platform for financial transaction in future.