Blockchain is the genius invention of a man (or maybe even a group of men) known by the pseudonym Satoshi Nakamoto. Since its creation, more and more applications have been found, and thus it has evolved and is not standing still. The technology was originally developed for an electronic currency (cryptocurrency) called Bitcoin. Over time, the community has found other potential uses for blockchain. Now you can even buy a card here https://cryptopay.me/ and pay with cryptocurrency for purchases. In this guide, we will tell you about the possibilities that make this technology unique.
In simple terms, blockchain is a series of immutable data records that are time-stamped. They are managed by an entire network of computers that do not belong to any one person. Several such records form a block. The blocks are interconnected using cryptography. So what is so special about it and why do we say it has the potential to disrupt today’s industry? Blockchain is not owned by anyone in particular – that means it is decentralized. The information in it is open to anyone and everyone. Blockchain technology is already being used in real life.
How does it work?
Blockchain is a fairly easy, yet original way to transfer some information from point A to point B. Transaction (transfer) data creates a blockchain. It is checked by a rather large number of computers (in some cases millions) distributed within the network. After checking the block, it is added to the chain, which is stored in the network. The created record will be unique and have its own history. If one record is compromised, the whole chain on all computers will be compromised. This is virtually impossible. The bitcoin cryptocurrency uses this model for monetary transactions, but it can be used in many other ways.
Let’s look at how blockchain works using an airline company as an example. Let’s say you decide to go on a vacation abroad. You go to an app to buy tickets online. You pay for your ticket with your bank card. The bank, in turn, may charge a fee for this transaction. Or the airline pays the bank a certain percentage for using their services and includes it in the ticket price by default. By the way, you can make purchases with cryptocurrency using your card https://cryptopay.me/bitcoin-debit-card. This is a very convenient solution.
If you use blockchain technology in this case, you will not have to pay additional fees to third parties. There will only be 2 parties to the transaction – the passenger and the airline. And the ticket information will be written into the blockchain and added to the blockchain. This creates a unique record that can no longer be changed. Inside the network, all information about the tickets purchased for a particular flight will be stored. You can notice how many modern companies have started to use blockchain technology in their work. The growing popularity of the technology leads to an increase in the value of bitcoin and other cryptocurrencies.