The concept of blockchain first appeared in the paper “Bitcoin: A peer to peer electronic cash system” that Satoshi Nakamoto, the creator of Bitcoin published in the year 2008. The blockchain was presented to the world as a public distributed ledger that helps you to transfer money securely by being virtually impossible to be tampered with by any third party.
As the technology became popular, people started understanding its importance and labeled it as one of the most crucial inventions in the field of computer science. Though the blockchain is a public distributed ledger, it is completely decentralised.
Plus, it offers a transparent way of transacting money and prevents outages.
Still confused about whether the blockchain really is one of most crucial inventions in the field of computer science? Well, then have a look at the list below to get rid of your confusions:
1. The real base of cryptocurrencies:
It is better to say the concept of cryptocurrencies like Bitcoin, Litecoin and others are based on the blockchain technology. Satoshi Nakamoto invented the blockchain in order help Bitcoin to perform securely in a decentralized way. Thus, it can be said that the concept of cryptocurrencies would not have been realized without the invention of blockchain. Blockchain allows you to transact money with others.
A block is created every time you transfer money and it gets linked to the chain to securely store every information for future references.
2. Provides high security:
One of the most important things that everybody looks in a cryptocurrency is security. And the blockchain assures you completely about the security without any hassle. The blockchain technology has been built using multiple layers of military grade encryption. Thus, it is virtually impossible to tamper with. So, it enables you to transact in money without having to fear any security breach.
3. Completely Decentralised:
The main USP of the blockchain is it is completely decentralized. Well, you might have heard the term before but what does it actually imply? It means that everything you do in the blockchain is not controlled by any superior authority. Satoshi Nakamoto created blockchain as an autonomous ledger that is completely self sufficient. It does not require supervision from any superior authority in order to function. It can function on its own. One of the main problems with the existing banking system is centralization.
To complete any function you need to get approval from higher authorities which does not only consume time but also makes it very troublesome. But blockchain successfully eliminates the problem by handing the power to the system itself than any authority. Thus, it makes the transactions easier and much faster.
The utility of blockchain does not end with cryptocurrencies. It is being implemented in several other sectors as well as for efficient functioning. Researchers have found that blockchain can be crucial in solving the problems of inventory management as well as logistics and transportation. So, is blockchain one of the most significant inventions of the century? Well, we leave that question for you to answer.