Why should you really care about blockchain technology?

The global blockchain market is expected to be $20 billion by 2024. Blockchain technology is evolving and it is going to stay for really long. This is the high time that you should really care about it for a better business process.

To clear your idea more, remember bitcoin and blockchain technology are a different concept. Understanding blockchain will help you to understand how this technology will it serve different industries.

What is Blockchain?

Blockchain technology is a digital ledger which works as a series of a block that contains information, chained together to offer a reliable and secure accounting for any particular field of work. In a block the information shared is encrypted, confirmed and distributed to a number of linked computers (in the network which are known as nodes). This ledger is secure and tamper-proof. The activities such as transactions, exchanging cryptocurrency, medical records, shareholder records, agreements are some of the best uses so far. However, it has a huge potential.

Benefits :
·    Data management: Strong verification process for better data management.
·   Logistics: Goods can be traced to their origin which offers company and consumers better transparency.

·  Investing: It provides a strong space for crowd-based funding and other investment.
·  Internet of Things: Offers an infrastructure to assign automation for remote systems as many IoT devices come with some privacy concerns.

 ·   Security: Decentralize data makes it easy to save files in multiple locations.

What is Bitcoin?

In simple words, it is a digital currency exists in codes (encrypted) form. It is one of the most popular cryptocurrency. Users can use high-end computing hardware to mine bitcoin. There is a limited supply of bitcoin as it requires a lot of computer resources and time. In 2017, a single bitcoin was worth about $17,112 USD. It is a viable currency online for many e-commerce.

How bitcoin works over blockchain?

Let’s assume that Mr. A wants to send money to Mr. B. Initially, they both need a bitcoin “wallets” as it works as software to use blockchain. A wallet is just an access door.

Mr. A uses his cryptographic key to request the transaction. The cryptographic key is transforming plain text into coded one. The key is private and ensures high security. This is the main part of the cryptographic operation. Mr. A’s request is joining the other requests or orders in a block, containing a cryptographic sign or hash of the previous block, a timestamp and transaction data too. This ensures that a block is linked to other blocks and can’t be altered separately.

The requests are then analyzed by others in the network. They check whether Mr. A really has the bitcoin to spend to Mr. B. If everything is okay, miners on the network will initiate the request with other similar transaction to form a new block. The block is marked with a date and it is added to the chain over the network. Finally, Mr. B receives his money.

We at Sphinx Solutions are working on the blockchain app development, wallet development, smart contracts and many more. We are an experienced IT team offers the best solution to the different industry. Curious to know more, contact us to take this forward.