The increased threat to cybersecurity demands a need for a robust and reliable technique for transactions and other activities, and this has become the need of the hour. There are various security measures which are being researched and tested. However, the malware attacks have always been on par with the technological advancements making online security a difficult question.
How this technology came into existence
In 2008, a group of like-minded individuals and technical experts, Satoshi Nakamoto, started using Blockchain technology to prevent misuse and fraudulence in Bitcoin. It is a technique which acts as a safety net for the crypto currency. This technology is known as Blockchain, and it serves as a reliable digital ledger for all types and kinds of online transactions. The system is accessible only by a specific set of persons, and the entire process is automated. It follows a definite set of protocols which are controlled and monitored by the team through continual updates. Every transaction is recorded with an extensive assemblage of details to invoke transparency in the process.
How the technology works
The technology was created by understanding the drawbacks of the current systems. The entire process is collaborated across a network of computers or nodes and placed across multiple points which make it far more secure than the existing systems. A change or a transaction made from a single node is immediately updated to the stakeholders. It allows more than one operation simultaneously which makes it more efficient than the current banking system.
Byzantine fault tolerance system for security
The term Blockchain is a derivative from the concept of adding of various modules to an existing chain. Each module or string is protected by a cryptographic sequence which prevents modification of a single place. Once the block is modified, the entire chain is modified simultaneously while notifying the whole team in the process. They follow the protocol of the ‘Byzantine fault tolerance system’ which makes it one of the most secure systems in the digital world. This fault tolerance system permits the technology to make a decision when the users provide different instructions.
The Byzantine system allows the user to create a pre-defined role and permission for the users. If a specific number of users with the similar controls opt for the change, then the transition is implemented. In the Blockchain technology, this has an added benefit where it controls the behavior of individual users. The Blockchain is a decentralized technology, where a central administrative unit does not control the process. Instead, the monitoring is overseen by all the users themselves. The Byzantine fault tolerance prohibits a single user to take advantage of the system and makes it more reliable in the process. The system is implemented in various fields like aircraft, submarines, etc.
Advancements in blockchain technology
These nodes in this network were limited at the time of its inception. However, it grew over the years, and it is estimated to be over 100GB in size as of today. There have been notable advancements regarding usability and reliability. Blockchain 2.0, introduced in 2014, is said to reduce human interactions during transactions and protect the privacy of the users. The technique is still in the experimentation process, and it is being tested in various industries and scenarios.
Reasons for success
Some of the primary reasons for the success of Blockchain technology are the sturdiness and stability. There is no single point of contact, and the changes cannot be made by a single user or at a single point. This makes it sturdy, and it has a pretty strong track record. A transparent operation is the key to success for any organization or system. The entire network is present across all the computers, and it makes one of the most public systems. The technology comes with a self-medication algorithm which resets automatically and adds more value to the security system. Any changes to the system cannot be made at a single point and require a great deal of power to make any significant modifications. This makes it almost indestructible.
Acceptability & usage
Though the technique was created to support bitcoin and digital currency users, the applications have experimented in various other industries. Some of these fields have successfully implemented the technology, while others are in the testing phase and it shows a great abundance of promise.
Countries have used this technology in regulating the land registry. This system prevents multiple registrations of a single land and help in reduction of fraudulent activities. Some of the countries who have favored the system and are in the process of implementation include Sweden, Georgia, India, Russia, etc
Accounting firms have shown great interest in this technological advancement and have applied it in their payment process as they accept Bitcoin from their clients.
Blockchain technology would be an ideal platform for non-profit organizations to connect their benefactors and beneficiaries. World Food Programme of the United Nations is one of the notable organizations to implement the technology.
Some national and international banks are slowly implementing the technology to improve their customer support and also enhance their security mechanism. Banks across the globe are considering and testing the feasibility of Blockchain technology in their systems.
The technology is being introduced gradually in other forms of online activities. This is much more secure and feasible than existing banking systems which make it the ideal partner. Other industries have now implemented this fail-safe technology, and it has proved to be efficient till date.
Many organizations have shown interest in adapting to the Blockchain technology, and some companies have had reasonable success in their efforts. The number is expected to grow in the next decade. The constant technological advancements and the public interest stand as a testimony for the promising market for Blockchain technology.
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