What Is Blockchain and Why Do We Need It?
Today most of transactions are made by a trusted middleman, for instance, a bank. But Blockchain allows people to connect directly, without a third party. Using cryptography to keep these exchanges secure, Blockchain gives access to a decentralized database of transactions (blocks) that all participants of the network can see. There is no one central authority. The network is decentralized because it operates on a user-to-user basis.
Blockchain is essentially a chain of computers (called “nodes”) where everyone must approve the transaction before it can be verified and recorded. A new block is generated around every ten minutes and then shared throughout the network.
The technology concept was firstly introduced in 2008 by Satoshi Nakamoto and then was implemented in 2009 alongside bitcoin, one of the best-known cryptocurrency.
The Blockchain technology, like all new technological advances, still has a lot of problems to be solved. Nevertheless, it’s gaining now more and more popularity. It can be not only the way to structure data and the foundation of cryptocurrencies. It has a great potential to transform not just the financial and banking spheres, but many other businesses and industries including medicine, the legal system, media, and retail.