What is blockchain technology and what is its relationship to digital currencies?

What is blockchain technology and what is its relationship to digital currencies?

 Blockchain technology is a distributed database that is used to store data over a network of computers.  This technology is used to create and manage digital currencies, such as Bitcoin.

 Blockchain technology has received wide attention during the past years, and has made a qualitative leap in the world of the digital economy, due to the protection it provides;  As the information stored in this technology cannot be hacked or tampered with, and through this article we will learn about this technology and its mechanism of action and its wide uses.

 What is Blockchain Technology?

 Simply it is an encrypted and decentralized shared database (shared electronic record) recorded in a public digital ledger for recording and processing financial transactions, contracts, etc.

  It is managed by a network of computers where several copies of it are stored in a group of computers around the world in a way that makes it difficult to hack or change.

 Blockchain technology speaks to a deep human need, which is the ability to trust other people, organizations, and companies in a world where most of our interactions take place through intermediaries and are stored digitally. 

It is debatable how much they embody this idea of ​​trust, or whether any technology can recreate what a person thinks, feels, and acts when they are trusted and trusted.  These are deeply human concepts, as well as the power structures upon which digital solutions are built.

 Cryptocurrency

 Blockchain technology is the main factor for the existence of digital currencies today, that is, this technology has been relied upon since the creation of Bitcoin and is the first digital currency, and by relying on it, it achieves several benefits.

such as: no need for a middleman or central authority to manage payments and transfers, and great security  Which is characterized by the difficulty of hacking, and preventing the withdrawal of the same balance more than once, or what is known as double spending.

 What are the pros of blockchain?

 Blockchain technology has many advantages that make it attractive for various applications as an alternative to traditional centralized methods, and its most important advantages are the following:

 Safety

 In the absence of a central server, it is almost impossible to attack the blockchain with paralysis, and mining operations make the computing power required to hack it so high that no hacking attack is feasible in the computing power of nothing more than the entire Internet.

 Precision in strings

 Thousands of computers approve transactions in the Blockchain network and in this way human intervention and almost any error that can occur in the verification process is eliminated and the information is accurately recorded. 

In the event that the devices commit an arithmetic error, this error will be in only one copy on the network.

 Transparency:

 It is an important element that has become an attraction for the use of this technology in saving and storing data, because it shows the same encrypted information from transactions and data to all people who have permission to access this information at the same time.

 decentralized structure

 Provides a new way to present content, software and financial transactions, eliminates the need to rely on large companies, and helps achieve transparency and speed in all types of transactions.