A buzz word on the internet nowadays, along with Bitcoin this word is thrown around like an iphone 5 in a skip.
However, blockchain is essentially a database, and thats all it is. For Example, if some bitcoin was sent from you to your brother using the cryptocurrency such as Bitcoin. This would travel through the block chain database.
Information (or data) such as a amount, time and date of transaction are stored in the blockchain database. Databases are just that, they store, organise and protect data, which is our inforamtion.
A better exlpanation would be via the video below. Seen as most people reading this blog might want to go for a technical role you definetaly know that most workplaces have their own server with a database. This is usually a centralized database as all the data is on one place and can be accessed by everyone easily.
This can be probramatic as depending on what topology your server is made up of it does not take that much for the server to crash and everyone to be blocked off.
This is even worse when it comes to banks, I have shown this video below in a previous blog, however that was not focuses on blockchain. His analogy is so good that I thought that I would share it again to illustrate this point.
How is this effecting the future?
Blockchain is a lot safer when it comes to security and protecting data, as explained in the video above money being sent through tranditional banking methods would go through a single database, organised by human interaction. This makes the process slower but also less secure, as there is a single point of attack for hackers.
With blockchain the whole process is automated with computers maing it much quicker, and the transaction has to be approved by thousands of computers instead of just one database making the points of attack much more distributed. Plus 99% of these computers have to approve the transaction so let’s say 30% are hacked into, the transaction will instantly be declined.
Nonetheless, this is just banking, but distributed databases could be used to protect sensitive data in large organisations such as Facebook, or Google, as well as smaller compaines which have the capacity to do that.
You never know when you might be managing one of these…