Blockchain technology has become increasingly popular among the general public lately, not only among the IT (information and technology) community. The use of blockchain is inseparable from cryptocurrencies, although many sectors use this technology.
Blockchain itself is a digital data storage system that is connected through cryptography. Blockchain is called the technology of the future because it can be applied in various industries, such as finance, entertainment, logistics, and others.
However, many people still need to become more familiar with blockchain technology. Here are interesting facts about blockchain that you need to know.
Different from Crypto
Many people are more familiar with cryptocurrencies like Bitcoin, compared to blockchain. Not a few people think they are the same thing. Blockchain is the technology behind cryptocurrencies. In other words, the existence of cryptocurrency is the implementation of blockchain technology. In cryptocurrency, the blockchain acts as a public digital ledger that records every transaction.
All Transactions are Transparent
Blockchain is decentralized, so all transactions can be seen transparently by having a private node or using a blockchain explorer that allows anyone to see transactions that occur directly. Each node’s copy of the chain is updated as new blocks are confirmed and added. It means that you can track transactions wherever they go.
As a digital ledger that records various transactions, blockchain is highly secure. Everything that is recorded in the blockchain cannot be tampered with or changed, which makes the blockchain very safe.
Blockchain technology achieves decentralized security and trust in several ways. First of all, new blocks are always stored linearly and chronologically. They are always added to the “end” of the blockchain. Once a block is added to the end of the blockchain, it is complicated to change the block’s content unless the majority of the network has reached a consensus to do so.
It is because each block contains its hash, along with the hash of the previous block, as well as the timestamp mentioned earlier. Hash codes are created by mathematical functions that convert digital information into a series of numbers and letters. If that information is edited in any way, then the hash code also changes.
Can Be Used for Various Industries
Currently, various sectors have used blockchain technology, one of which is to record cryptocurrency transactions. Thanks to the blockchain, transactions have become much easier as it no longer requires an intermediary.
As previously explained that apart from being used for cryptocurrency trading, blockchain technology can also be used for other things. As for the use of different activities in question, such as finance, health, property records, smart contracts, voting, and others.
Some companies that have used blockchain technology include Walmart, Pfizer, AIG, Siemens, Unilever, and many more. For example, IBM has created the Food Trust blockchain to track food products’ journey to get to their location.
Becoming More Environmentally Friendly
One of the negative assumptions about blockchain and cryptocurrencies is a large amount of energy required and the resulting release of carbon emissions. As a result, some blockchain networks are switching from a Proof-of-Work (PoW) model to a Proof-of-Stake (PoS) model.
PoS and PoW share the same goal: to create a secure, decentralized system without using third parties. However, both have differences in terms of energy requirements. The PoW transaction verification method is very complex, requiring much computing power. In contrast to PoS, the verification method is simple and does not require large computing power.
Vexanium uses a Delegated Proof-of-Stake (DPoS) consensus mechanism that does not require large computing power, so it is much more environmentally friendly.