The Concept of Blockchain
This week’s discussion centers around the concept of Blockchain. There is still much confusion regarding what Blockchain is and what it is not. Please discuss your explanation of Blockchain to include why it has been gaining so much popularity.
Provide an outside source (for example, an article from the University Library) that applies to the topic, along with additional information about the topic or the source (please cite properly in APA)
At least one scholarly source should be used in the initial discussion thread. Be sure to use information from your readings and other sources from the University Library. Use proper citations and references in your post.
WALDO, J. (2019). A Hitchhiker’s Guide to the Blockchain Universe. Communications of the ACM, 62(3), 38–42. https://doi.org/10.1145/3303868
PAVLUS, J. (2018). The World Bitcoin Created. Scientific American, 318(1), 32–37.
Blockchain technology is sometimes referred to as Distributed Ledger Technology (DLT). With Blockchain, people who do not trust each other are brought in to build trust and transparently share valuable data. When using Blockchain technology, blocks of data are stored by the database, after which they are arranged in chronological order. Besides, when using Blockchain technology, the digital assets are often decentralized, giving room for access to everyone. Transparency is key when everyone has access to the already distributed assets, as records must be followed. Likewise, users are guaranteed the security of the data records, and trust is built without necessarily involving third parties in the system (Saberi et al., 2019). The functioning of the Blockchain technology can be associated with the creation of a google document sheet. After its creation, the document is often distributed to the users, and through that, everyone has access and can progressively check the ongoing modifications within the document. The same case applies to Blockchain technology though it is more complex than the google document as it preserves integrity within the process, thus building trust in the data. Chen et al., (2018) stress that the functioning of the technology is promising in the ever-changing world due to its transparency and efforts to reduce risks by incorporating multiple users.
Blockchain technology consists of three major concepts: the miners, nodes, and blocks. The miners create new blocks within the process and use certain software to solve the respective problems. On the other hand, blocks within Blockchain technology consist of three elements that guide the functioning. They include but are not limited to data, nonce, and hash (Andoni et al., 2019). Blockchain technology collects information in sets known as blocks which constitute the full information. The blocks formed have different storage capacities that hold the data, and when they are filled, they are automatically linked to other blocks constituting a chain referred to as the Blockchain. Nodes play a critical role in the decentralization process that cannot just be overlooked. The nodes help in the distribution of the chain by ensuring copies within the Blockchain technology are maintained, and the network is functioning continuously. Data is always structured within the Blockchain technology into blocks after which they are strung together.
Blockchain technology can be used in cryptocurrencies in buying goods and services such as Bitcoins. Blockchain technology is created solely to allow digital information to be recorded and distributed to users who need the data minus editing (Saberi et al., 2019). According to the technology, the records of data within the technology can neither be destroyed nor altered. Regardless of the location of the various data users within the Blockchain technology, they can access the database and information from various network nodes.
Blockchain technology is important in keeping track of the transactions and holding various crucial information such as legal contracts and company identifications. The technology is important as it can be used in healthcare, tracking property records, voting, currency, among others (Yaga et al., 2019). Users of Blockchain technology also have the opportunity to keep their identity anonymous and work towards transparency. Additionally, the technology is unlikely to face cyber attacking incidences as its fast-growing and can be so expensive to undertake the process as alterations are keenly monitored (Treleaven et al., 2017). It would be strenuous for the hackers to do so as they would have to alter every copy.