Blockchain is the technology that makes Bitcoin and other cryptocurrencies very secure. It’s an open-source and distributed database that is stored in nodes or computers within the network. When new transactions or blocks are added to the blockchain, it will automatically update itself. Here are 5 very interesting facts about this ultra-modern technology.
1 – It’s Tamper-Proof
Once an entry has been added onto the blockchain, it will be nearly impossible to remove or alter it later. If you want to alter an entry, you’d have to basically alter all the transactions that came after it. Doing this is mathematically impossible, so even genius fraudsters would have to look elsewhere to steal bitcoins without too much effort. Being tamper-proof is also the reason bitcoin payments are final and irreversible.
2 – It’s 100% Transparent
Anyone with access to the blockchain can see all the transactions that have ever occurred in the past. You can even look up the first ever block (block 0) that was mined by Bitcoin founder, Satoshi Nakamoto, in 2009. This genesis block contained the message ‘The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.’
3 – Criminals Can’t Hide Behind The Blockchain
If criminals think they can hide behind the relative anonymity that Bitcoin provides, they’re sorely mistaken. Many have tried to evade the long arm of the law by converting their stolen loot to bitcoins and transferring them to different wallets, but with the transparent nature of the blockchain, computer experts can spot and trace all the bitcoin transactions these criminals have ever done.
4 – Blockchain Technology Is Not Limited To Cryptocurrencies
Many different startups have started to experiment with implementing blockchain technology in various industries. Once such example is Ethereum with their smart contracts technology which basically runs on blockchain. Since the blockchain is decentralized, two parties can make transactions between themselves without needing the services of a middleman. This not only saves you money, but it also saves you a lot of time and conflict.
5 – Blockchain Can Still Be Improved
While this technology has definitely improved the lives of many people, it can still be improved. For one, as time passes by, the blockchain will grow to be several hundred gigabytes of data. This will cause a lot of bandwidth and storage problems on personal computers.
Let’s hope the brightest minds in the crypto space can find a solution to this predicament soon.