Blockchain technology is creating a new space in businesses and companies. The impact of this technology is not only limited to finances or cryptocurrency. This is taking over almost all the other important sectors either healthcare or entertainment. Now, with the rise in applications and popularity the doubts and questions are also raising in many minds. bitcoins-evolution.com, People want to know more about Blockchain technology.
There are some repeated questions which are asked by people across the world. Everyone is eager to know as much as possible about this technology. Now, we have picked 6 frequently asked questions about Blockchain technology to answer. Keep reading, if you too are curious to know and understand blockchain technology easily.
1. How can we define Blockchain technology in Layman language?
Blockchain is a distributed database which is used to store data in blocks. It is a decentralised technology that means every node has a copy of data without any central authority governing the data. Different blocks are connected with each other which forms a chain hence called Blockchain.
In Layman language it is an infrastructure to keep our record or data protected. It has different components like nodes, consensus, miners, blocks etc. All these components have different functions and altogether they protect our data from any malicious activities.
2. Are Blockchain technology and Cryptocurrency same?
This is one of the most asked questions about Blockchain technology. The answer is NO, they are not the same. Blockchain technology and Cryptocurrency are two different things but they are related. Cryptocurrency is a digital currency which is based on this technology whereas Blockchain is a technology which has broad uses.
Blockchain technology is used in mining of cryptocurrency as well as in transactions but this is not the sole purpose of this technology.
3. What is real-life use of Blockchain technology?
Blockchain technology has some major real-life uses. This technology is now entering into all the possible industries like music, healthcare, finance, entertainment, business, gaming, etc. One of the important uses of this technology is in supply chain management. This technology efficiently reduces the risk and cost of the supply chain. This technology also helps in maintaining clear and error free data in all the sectors. It also checks the CVs while hiring for any company making it easier for the HRs.
With the use of blockchain technology in any industry can make the work flexible and easier. It also provides security to some company’s data. These are not the only uses as this technology has a lot more potential.
4. What features make Blockchain technology most secure?
Blockchain technology has some features which protects our data from any kind of third party or malicious activity. It is a decentralised technology that means every node has a copy of ledger, it also has a strong encryption algorithm which is impossible to decrypt by any other means. It also features different types of consensus algorithms. These features assure security for the users. This is one of the reasons for the popularity of this technology.
5. What are the Benefits of using Blockchain technology?
Blockchain technology is a decentralised network which has a potential to revolutionise the industry. It makes online transactions safe and maintains anonymity. It protects from different kinds of cyber attacks. The peer to peer network feature is an essential part of providing security. It has already entered many sectors and is changing them for good.
6. Name different types of Blockchain technology?
There are different types of Blockchain technology which are used in different industries based on their functions.
Public Blockchain: This is used as an open network where any device can connect to make transactions.
Private Blockchain: This blockchain requires permission to join and no other device can join to this network. The ledger is also readable to the users having permission.
Consortium Blockchain: Features of this Blockchain are similar to private blockchain. The one difference is that private Blockchain functions within an organisation whereas Consortium functions in more than one organisation.
Hybrid Blockchain: In this system public and private blockchains are combined to make the system controllable as well as provide freedom.
These are some of the frequently asked questions about the Blockchain technology. This technology is making a way in all the major industries and many bigger companies are adopting this. In some way or another, this technology seems to have a great potential to go a long way.