There’s a reason why worldwide spending on blockchain solutions has reached $6.6 billion. When most people hear the word ‘blockchain’ their minds instantly go toward cryptocurrency.
And, while this is a hot spot in the media it’s far from the only application that blockchain technology can provide. In this article, we’ll walk you through exactly how blockchain technology works in practice.
We’ll also go into some of the different applications for it. That way, you can see for yourself the place this piece of tech has in our future.
What is Blockchain Technology?
Before we begin, it’s important to first understand exactly what blockchain technology is. You can think of blockchain as a database that stores digital information along with a network of computers.
The thing that separates blockchain from other databases is the fact that it’s decentralized. This makes it both more secure and not dependent on existing infrastructure. Let’s move on to exactly how it works.
How Does It Work?
When information is stored on a blockchain it’s put into a group that holds the data. This group is referred to as a block. Each block comes with a limited storage capacity.
So, once it’s filled the block is permanently closed, then linked to the previous block of information. Thus a chain of blocks begins to be formed. This is what separates blockchain from other databases. Instead of being stored in tables of information, these blocks are linked in a chain.
What’s more, each chain is irreversible. That means that once it’s filled it’s set in stone. So, it’s much easier to track old bits of information or transactions that may have occurred on the blockchain.
What Can Blockchain Be Used For?
You’re likely familiar with how blockchain technology has revolutionized the world of cryptocurrency. However, this is far from the only application that blockchain can be used for.
Blockchain can be used to optimize our supply chains, healthcare system, and voting records. Think about how helpful it would be to have an immutable record in these areas.
It’s ideal for tracking important records, as well, copyrights, ownership titles. And, that’s just the tip of the iceberg.
People at Netcoins are already figuring out how to use blockchain with virtual real estate. As such, we can expect to hear a lot more from blockchain technology in the future.
Want More Content? Keep Reading
We hope this article helped you learn more about how blockchain technology works in practice. As you can see, this type of tech can revolutionize the way we keep records.
As such, we can expect it to stick around for a long time to come. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep reading to find more topics that you’re sure to love.
