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What is Blockchain?

Blockchain has been around since bitcoin's inception in 2009, however, only recently has it began being applied outside of the cryptocurrency usage. Learn more in today's article.

10 Mar, 21 by Antoniy Yushkevych 8 min Read

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Since its inception, the internet has been working within a certain structure. Some servers host sites that clients then use to download data and send requests. This system works well and has been for dozens of years, but there is one major issue.  The centralized server structure means that only one machine has full control over data storage. If this server were to be compromised, the attacker would single-handedly have all the control over the data stored there and the server's network.

What is Blockchain?

The distributed ledger technology, which blockchain is a part of, can change the way data completely is stored online. Progress, however, requires time, and just how Linux needed over a decade to become a cornerstone in modern application development, blockchain will most likely take years to become a more efficient way to exchange information between open and private business networks. So in this guide, we will consider all of the required details on what blockchain is and how it is important for the modern era.

Blockchain is a system of recording information in a way that makes it nearly impossible to hack it. A blockchain is a system of unchangeable time-stamped records of data managed by a group of computers that are not under single ownership. Each record of this data is called a block and is secured and bound to one another using cryptography (i.e., the chain).

What is so unique about this system that differs it from previous technologies and can change the way the internet is run? A blockchain network has no central authority, meaning that the information is open for anyone to see, and any single entity cannot change pre-existing blocks unless that entity has control over more than 50% of all the systems in the blockchain network. A consensus between most computers can only update the blockchain, and once a new block is entered, it can never be erased.

As per the little introduction about Blockchain, it is a series of multiple blocks that record data in the bash functions with specific timestamps that means data can't be changed. As you can't overwrite the data, then the data manipulation becomes highly impractical, so data security is an excellent Blockchain work.  Many data analysts believe that Blockchain can be used as a shield in cybersecurity. 

Blockchain's security depends upon the changes made on the data being transferred to all users for a better and established secured record system. Blockchain creates appropriate information of the manipulated data information for all users. Hence, its overall database remains secure and safe even if someone hacks the system of some users. However, Blockchain has some challenges like regulations, enforcement, and compliance required for a system. 

Security 

Blockchain offers amazing security and a durable system as no one can manipulate or alter Blockchain blocks or data. It is one of the best advantages of Blockchain, so many people have started to adopt this technology for this particular security reason. 

Simplistic Ecosystem

Many people believe that Blockchain has a quite complicated ecosystem but is it not true because Blockchain works to shrink down the multiple procedures and turn into simple steps as a simplistic ecosystem. 

High-Level Integrity

Blockchain provides a high level of integrity compared with other network systems, so it means that data will always remain the same, and no one can manipulate and alter them once it is saved in the blocks. 

Chain Accuracy 

Blockchain transactions are approved by multiple computer networks. It removes all human involvement in verification, and it results in a more accurate and precise information record. Hence, Blockchain is secured, accurate, and eliminates the errors from the process.

Costing 

Costing of Blockchain depends upon the system requirements and the type of features you are using for the system. Therefore, more features or functions require more investments, and it can be a little bit costlier than other networks. 

Speed Inefficiency

Blockchain sometimes has speed inefficiency, and Bitcoin is the perfect example of this challenge. Bitcoin requires almost ten minutes for adding a new block on the Blockchain, and it shows the speed inefficiency.

Why the sudden rise in popularity of blockchain in the past couple of years? The answer is bitcoin (and all the other cryptocurrencies). Although nowadays we see many different uses for blockchain technology, the origins of it lie within bitcoin. It was developed as a simple and verifiable method of transactions of money without a central governing authority.

As of lately, cryptocurrencies have been the craze when it comes to online money transfers. The lack of transfer fees and complete anonymity allowed bitcoin and other cryptocurrencies to rise to popularity.

Another reason why bitcoin has gained so much traction lately is the lack of centralized control over transactions. The entire blockchain approves each one and thus is nearly foolproof. It is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. Thousands verify this block, perhaps millions of computers distributed around the net.

The verified block is added to a chain stored across the net, creating a unique record and a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is virtually impossible. Bitcoin uses this model for monetary transactions, but it can be deployed in many other ways.

For offering the benefits of blockchain-based services to a wider audience, the technology has started being offered in the cloud as a service business model. On the operational front, it is more or less similar to the SaaS, PaaS, and IaaS models, which enable using cloud-based apps and storage.

It allows businesses of all types and sizes to access blockchain-based technologies without investing in in-house development. The BaaS model enables companies to access the blockchain provider's service wherein they can develop blockchain applications at a minimal cost. This benefit is what has made it a key part of the blockchain technology trends.

The only limitation of the BaaS solution for business is that it asks for a certain centralization level since the transactions have to be funnelled through the host's blockchain services. And because the answer to how blockchain is used in business lies at the center of decentralization, companies tend to be wary of its adoption.

A BaaS provider sets up and manages the blockchain technology and infrastructure for a customer. A client pays some fees to the BaaS provider for setting up and handling blockchain-connected nodes on their behalf. A BaaS provider manages the back-end for the client and their business.

It is the responsibility of a Blockchain-as-a-Service operator to keep blockchain infrastructure running. A BaaS operator also takes care of the activities like proper allocation of resources, bandwidth management, and hosting requirements. Using a BaaS model, clients can focus more on their core areas and their blockchain's functionality without worrying about performance and infrastructure-related issues.

Conclusion

So it was the details on the Blockchain and we have considered every single detail on this particular network system. As we have mentioned, Blockchain is a series of blocks that are used for storing data so it is one of the most secure network systems as data can’t be manipulated from any third party. If you like our guide then make sure to check out our Monovm as we provide multiple services such as a dedicated server, web hosting, VPS hosting and many more. 

So it was the details on the Blockchain, and we have considered every single detail on this particular network system. As we have mentioned, Blockchain is a series of blocks that are used for storing data, so it is one of the most secure network systems as data can’t be manipulated from any third party. If you like our guide, then make sure to check out our Monovm as we provide multiple services such as a dedicated server, web hosting, VPS hosting, and many more. 



Antoniy Yushkevych

Master of word when it comes to technology, internet and privacy. I'm also your usual guy that always aims for the best result and takes a skateboard to work. If you need me, you will find me at the office's Counter-Strike championships on Fridays or at a.yushkevych@monovm.com