What is Blockchain?

 

Blockchain is often referred to as the technology behind the emergence of bitcoin and major cryptocurrencies,  it's has grown overtime that it's evolvement has gone beyond cryptocurrency. What is blockchain? Blockchain is distributed digital application that is used to monitor transactions in the crypto ecosystem, it's development was designed in such a way that every transactions are registered and can not be altered in any form. This makes it's more transparent.

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The Origins of Blockchain

The concept of bitcoin Blockchain was first introduced by an individual called satochi nakamoto in 2008. His white paper, which was bitcoin was designed to operate as peer-to-peer Electronic cash system. Creating a Blockchain was not the initial idea, the idea was to develop a system void of third party majorly bank 

How does Blockchain works?

To understand Blockchain, it's very important to know it's functionality.

Blocks: the system consists of blocks which record every form of transactions, when a particular block has reached it's limit another block is designed, simultaneously to firm the chains of blocks, that is why its called Blockchain.

Hashing: every block in the design has a unique code tagged hash, it harbour the hash of previous blocks. The hash serves has instruments that links other blocks together in a specific order and makes it difficult for record or transactions to be altered.

Decentralisation: unlike the regular database where transaction are centralised in a particular unit without accessibility to the third party, Blockchain operate under decentralised form, where individual have access to every unit of the system.

Characteristics of Blockchain

To access Blockchain flawlessly, you need to get familiar with it's characteristic.

Durable: once a transaction has been done on a Blockchain it's permanently recorded, the durability of it will prevent it alteration, this defines the integrity of the technology.

Transparency: it's designed to make transactions visible and public to every user, the transparency is meant to build trust on the program.

Security: the structure of Blockchain combine with the hashing makes it more secure and difficult for hackers to hack into the program.

Decentralization: the introduction of decentralised activities into Blockchain makes it free from risk of corruption and some other ill activities.

Applications of Blockchain

Blockchain activities breaks into multipurpose functionality the moment it gain wide usage. Some functionalities was introduced into it to attract user friendly activities.

Finance: Blockchain has grown beyond just crypto trading, it has become a platform for financial security, payment and remittance. The financial transactions has grown beyond border.

 Management supply chain: it act as a chain for transparency and traceable supply. Through recording every form of transactions carried out in the Blockchain. This in other words act as a secure measure for the platform.

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Real Estate: Blockchain makes real estate transactions more easy and simplify, it reduces fraud and speed transfers process.

What are the Challenges and Limitations?

Flexibility: Blockchain suffers flexibility because the computational power needs more time to process transactions which might lead to delay and insteal more cost of gas fees.

Consumes energy: the consensus mechanisms input into Blockchain requires more energy for functionality,  most especially the proof of work, this has birth more environmental criticism which makes adopt an alternative like proof of stake.

Regulation and Legal laws: Blockchain decentralised nature of has makes it very difficult to adhere to the regulations and law, this happened because of its broad and jurisdiction compliance.

User acceptance: before Blockchain can gain a broad acceptance and achieve full potential, it requires to educate it's users about it's usage and the prospect and it's philosophy.

The Future of Blockchain

Blockchain has a future prospect because it tends to be the future of currency, the evolvement over time as expand beyond limit.

For layer 2 solution: the layer 2 networks are developed as solutions to solve the problems of transactions issues whereby reducing the cost.

Decentralisation of finance: the decentralised development diminish the regular traditional holdings of financial systems, there by giving individual access to personal trading system. 

Central bank digital currency: government is swinging into digital currency, this has grown into the adoption of Blockchain protocol as an avenue to expand the reality of the currency. They aim to combine the trust of digital currency with the stability of the traditional fiat system.

Non-Fungible Tokens (NFTs): those who are into real estate, creativity NFT has created an avenue for easy trading and expand their reach with the ecosystem.

Conclusion

Blockchain has proffer solution tho out mindset around the security of financial transactions, it's has build a trust around money flow in the digital world against the traditional way of making transactions. As time evolves and the growth in the digital world. The vulnerability state of the financial world will totally come to an end with the growth in the bitcoin ecosystem and the development of Blockchain.