A blockchain is a digital ledger of transactions that are shared across a network of computers. Once a record is added to the chain, it is impossible to change. There are multiple blocks in a chain, and each block contains several transactions. Each time a new transaction occurs on the blockchain and is recorded. Blockchain is a type of DLT (Digital Ledger Transaction) in which transactions are recorded with a permanent cryptographic sign called a hash.
The History of Blockchain Technology
Today, blockchain technology is the heart of digital assets, and its emergence dates back to 1991. It was envisioned by the need for an efficient, cost-effective, reliable, and secure system for conducting and recording financial transactions. The year 2008 is when it gained relevance, owing to the work of Satoshi Nakamoto (It is believed that it could be a pseudonym for a group of people or one person).
Why is Blockchain Technology gaining importance?
It is a promising and innovative technology because it helps reduce risk, rules out fraud, and brings transparency. As an immutable public digital ledger, every transaction recorded cannot be modified. The encryption feature makes blockchain always secure. The transactions are instantly updated to the ledger and the authenticity of transactions are verified and confirmed by participants.
Blockchain and Digital Assets
Blockchain has powered digital assets, and it has been a game-changer. With increased clarity, the interest in digital assets is heating up and gaining popularity, at an exponential rate worldwide. Many countries have accepted digital assets and coins, Japan, United States, France, Russia, India, Canada and so on, and the list is growing. The UAE government is said to issue its digital currency, ‘Govcoin’. They mentioned the introduction of their digital coin is a part of their strategy to drive digital transformation in the UAE’s financial services sector.
Blockchain can transform financial institutions and bring more economical costs, agile execution of transactions, increased transparency, scrutiny of operations, and other benefits. So we are indeed looking at promising developments in the future.