If you’ve been into investing or cryptocurrency, then you must have likely encountered or knew about blockchain technology.
Blockchain Explained
While blockchain sounds complex, which it could actually be, you’d be surprised that the main concept is fairly simple to understand. In essence, blockchain is a form of database. Though the primary difference between a database and blockchain is how it structures different data.
With regards to blockchain, what it does is collecting information in groups, which is otherwise called as blocks. Every block is holding sets of information. The blocks also have some sort of storage capacity and when it is filled, it is then chained to the blocks that were previously filled. This ultimately forms a chain of data that’s called as blockchain.
Another Block is added
Now, any new piece of information that follows the new block added will be compiled in order to form a new block. Again, it will redo the same procedure which is repeated whenever new blocks are added.
Because of this, blockchain is gradually transforming how businesses operate. It becomes possible by enabling customers to eliminate the middleman in many different services. As a result, they are able to boost efficiency and reduce cost too.
Because many are beginning to see the benefits and advantages of blockchain, more and more businesses like https://www.lacafettebrooklyn.com/ are starting to integrate it in their operations.
Everything about Blockchain
Despite the fact that it is hard to attain simultaneous privacy and security in traditional information system, blockchain can make it possible by allowing confidentiality via public key infrastructure. The purpose of this is to protect against any malicious attempts in altering data and also, to maintain the ledger’s size. The more distributed and larger network tends to be more secure, as what is expected.
In an effort to get around issues about data privacy, operators of blockchain has the ability of storing personal data as well as reference to this information off-chain with “hash” of information. This is another way of transforming data to unreadable or encrypted information.
Privacy and Data Storage
Storing data or any information off the blockchain indicates that any personal data is held by individuals themselves or in more conventional database. In fact, documents about “know-your-customer” similar to passport, driver’s license could be stored off of the blockchain like application systems as well as standalone database.
However this has to be performed thoroughly since storing data or any information off-chain may reduce immutability and transparency.