With the advancement of technology, humans have been able to improve multiple aspects of their lives. Entertainment, food, security, work, education, and productivity are some of the more common grounds of advancement. But as we continue to seek further improvement, we discover new frontiers of technology that aid future progressions. Blockchain is the next step in the advancement of technology.
But what is Blockchain Technology?
To understand it, let us look at the traditional accounts ledger system first. A ledger allows its user to add consecutive entries of data in it, keep track of the data, cross verify, and make sense of them through a structured approach.
Blockchain technology adopts a similar functionality, but instead, they work like that of a legitimate database of entries on distributed ledgers, shared across multiple platforms, thereby enabling a community or a group of users to track the entries.
Blockchains are primarily used to track the transactions of cryptocurrencies. But by isolating their core functionalities, we have discovered several innovations and applications of blockchain across various industries.
What are the features of blockchain?
- Distributed ledgers
- P2P networks
- Immutable entries
- Cryptography-based security
are some of the key features offered by blockchain technology.
Decentralization refers to the elimination of a single body of authority. For example, a single government body or a group of people controls the overall functioning and acts as the deciding authority of a bank. Via decentralization, the customers are given power and authority over their assets.
Distributed and Immutable ledgers allow shared tracking of entries and once entries are made, they are made public and cannot be tampered with. This leads to easy & quick tracking of data.
P2P or peer-to-peer networks refer to a mesh of multiple interconnected networks that allow communication between users(peers) of the same community. P2P networks allow verifications and certifications for transactions.
What are the applications of blockchain?
The blockchain technology applications consist of, but are not limited to;
- Blockchain Finance
- Blockchain Exchange
- Supply Chain Tracking
- Quality Assurance in Supply Chain
- E-commerce Databases
- Crowdfunding Platforms
- Blockchain Internet of Things
- And so on….
But we often find cryptocurrency in close association with blockchain technology.
Cryptocurrencies are digital coins that are utilized as an acceptable medium to perform trade within a community of users. Cryptocurrencies have a real-time monetary value that often fluctuates based on multiple factors, including trade.
Crypto users on blockchain platforms use crypto-wallets to store their digital assets. They facilitate secure and easy storage, exchange, and transactions of cryptocurrencies. There exist various types of crypto wallets such as Desktop wallet, Web wallet, Mobile Wallet, and Hardware wallet. Each of these work on the same concept of digital currency transfer but have different utilities and accessibility. The services related to the creation of crypto wallets are called cryptocurrency wallet development services.
What are the benefits of crypto-wallets?
Crypto-wallets offer distinctive benefits on their own and also by incorporating the core ideas of blockchain technology.
- Global Currency
Crypto-wallets allow its owners to carry cryptocurrencies and perform transactions since cryptocurrencies are accepted globally.
- Secure and Reliable
Public and private keys function similarly to a bank account and a password respectively to ensure secure transactions. Both private and public keys are mathematically encrypted through hash algorithms to improve reliability.
Decentralization ensures the elimination of third-party intervention or the abuse of authority by a single entity on the blockchain.
- True Ownership
The private and public keys are user-generated, thus offering true ownership and control over the contents of the wallet.