The Concept of Block Chain Software and It’s Advantages
What is the block chain?
The block chain is a globally distributed ledger, which facilitates the movement of assets across the globe, with a minimum transaction fee. These assets can be any type of value, as long as they are presented digitally. Till the Bitcoin and its distributed ledger were invented, digital currencies were treated as unfeasible because of the comparative ease of which digital information can be copied. This process is known as the "double-spend" problem where each transaction holds a risk of the sender sending a copy of the digital coin to the merchant instead of the original.
The conventional way of reducing this risk has been to have an authenticated third party, such as a bank, to act as a centralized authority keeping track of all transactions. Bitcoin has transferred this responsibility to a whole network. While exchanging the ownership of a digital coin, a centralized database is no longer needed. Instead, a distributed ledger keeps the track of all transactions and requires validation from its users to verify each alteration of ownership.
The concept of block chain software:
The core of this block chain innovation is built around the idea of a distributed consensus ledger, where the ledger is maintained and kept on a distributed network of computers. This accounting makes it possible for the entire system to create jointly, evolve and monitor one immutable history of transactions or other successive events, and it is today most commonly known as the block chain. Up until recently, the most popular block chain technology application has been a cryptocurrency famously known as Bitcoin. It used a ledger called the Block chain, from where block chain technology got its name.
The potentialities of block chain:
Many in the financial services sector are interested in the potential of block chain to enhance trust, transparency, reliability, efficiency and innovation in economic and fiscal sectors. The ambitious claims about its potential benefits – not least the huge amount of money that it might save – are hypothetical at this stage. There is a lot of hype, which makes it difficult for banks to decide exactly where and how to innovate best, and ongoing regulatory uncertainty is no friend to innovation. Beyond payments, it offers possible advantages in many other areas of the financial services sector. The transparency and completeness of the transaction register could help tackle anti-money laundering efforts. This effort is an area that has traditionally been hard to control accurately.
The advantages of block chain software:
- Faster transactions
- Less transaction cost
- Transparency and immutability
- Empowered users
- High-quality data
- Reduces the complication of multiple ledgers
- Process integrity
Block chain offers tremendous savings in transaction costs and time, and its advantages over existing technologies can enable new business models that would not otherwise be possible, or practicable. Users can trust that transactions will be executed exactly as the protocol commands removing the need for a trusted third party. To transfer money through bitcoin, you need to open a bitcoin wallet address and your recipient also need to have one; you need to fill the amount you want to send and put the address of the recipient and click.
Author Bio:
Kathlin Smith is an internet expert, who loves to share her thought on latest technological developments, world economy and traveling to interesting places. Her special interests are Blockchain technology, cryptography and software development.