Technology has swept every sphere of life. From every sphere of life, it has emerged as the leader in the lives of people. From handheld smartphones to supercomputers, everything has changed to the digital self. Digitization came as a substitute for physical life and some assets were introduced to remove the monopoly of a certain organization. Similar is the case with currency. When banks were leading the way in the economy and were heading for their brighter future, a new type of technology was introduced which was known to the world as cryptocurrency. The cryptocurrency was introduced to remove the monopoly of banks and other financial institutions. With the introduction of cryptocurrency, associated terms were also coined which were known as blockchain and others. Blockchain is the most important term that has backed the entire process and everything that is happening on the decentralized platform depends on it. If you want to invest in bitcoins, you may need to know about What is a centralized cryptocurrency exchange?
Fundamentals of blockchain
Blockchain is the soul of the crypto market and has its association with bitcoin. Both the terms were coined together and they have the same energy and background. In short, blockchain is the basic unit of life for bitcoin just like a cell is the basic unit of life. Blockchain has become a potential source of income as well as assets in the form of cryptocurrencies. Blockchain can be considered to be the connecting link between physical and digital platforms. In the traditional method of accounting, maintenance of records is done by an accountant. He usually has a ledger that he uses to record transactions systematically and chronologically. The chronological recording of events helps the person to go through the details of a transaction on a particular date easily. Similarly, on a digital platform, we have blockchain as an accountant. The chronological recording of all the digital transactions is maintained in this digital ledger and important information that is required is recorded and accessed easily.
Changes brought by blockchain in the world
We have always seen that any finance and other transactions are regulated by some authority. These authorities are maximum times appointed by governments and they only have the right and power to alter or to end the process as the conditions demand. But in blockchain complete decentralization of power is there. This means that no regulating authority like some finance minister or concerned under some government is there. The process is independent and governed by a set of protocols.
Cheap and cost saving
The absence of middlemen and third parties has helped to reduce costs. The cost-saving techniques have helped to reduce the cost of the project as a whole. Where we had to settle the transactions on some bigger amount due to commission paid to middlemen can now be paid directly and the work completed within a jiffy of a time. As a result, chances of corruption have reduced and, in some places, have completely vanished.
Blockchain is considered to be the most secure form of network. Although in the past there were some events that happened that proved not so good for the process but still, there are proofs that the blockchain platform is one of the most secure forms of network for transactions as well as for storing the data. The traceability of data is an add-on wherein following some protocols it is possible to track down the authenticity of data. Following all these points one can easily see that blockchain is not just a word but a complete network. It can hold and change the digital platform that will ultimately affect the physical stage