The blockchain technology is still in its early stages, it being a relatively new technology. However, in spite of that, it still shows a lot of potential to change many things in the financial world as we know it.
It is possible that the blockchain technology can disrupt multiple industries and make the process more democratic, secure, transparent, and efficient.
In this article, we will talk about the 3 greatest features of the blockchain technology and how they can potentially help change the landscape of the financial industry in more ways than we can imagine.
In simple terms, a decentralized technology allows us to store assets in a network that can be accessed over the internet. The assets can be anything. It can be a form, a token, a contract, chain-of-evidence documents, or a property registry document.
Through decentralized technology, you as the owner of the asset will have control using your private key, which is directly linked to the asset. The owner can transfer the asset whenever he wants and to whomever he wants.
The blockchain tech is being treated as a powerful technology to decentralize the web. This technology has proven itself to be very useful and it still shows a lot of potential bring massive changes in the existing industries like in the field of banking and finance.
The blockchain is a public ledger than offers information of all the participants and transactions that have ever been executed on it. A block is the “prevailing” part of a blockchain, and it’s supposed to keep a record of the recent transactions. Once they are completed, it goes into the blockchain.
Blocks are added in sequential manner with the next block having the hash of the previous block. A new block gets created as soon as the previous block gets entered in the blockchain database.
This kind of technology aids in recording each transaction and shares the transactions across the network. Every user in the network can validate transactions and all of them have an identical copy of the ledger, to which transactions can be added. The changes are reflected on the ledger within minutes and sometimes seconds.
The result is a highly efficient and secure method of performing transactions, serving as an online ledger that keeps records of transactions that cannot be changed.
There are many ways that you can mint some digital coins. The most popular of all process called mining, but several other methods have already been proposed.
For instance, in the case of bitcoin, the OG cryptocurrency, the community uses the process of mining. Proof of work is protocol by which someone can effectively prove that they have engaged in a significant amount of computational work.
Mining requires solving a computational puzzle. The role of the miner is to create the block that contains the number of the latest transaction. The miner should encrypt data by all the computational and therefore provide the proof of work.
The miners compete with each other in order to be the first one to add the most recent block on the top of the blockchain. The added block is then verified by other nodes when the other blocks are added on top of it.