Blockchain technology, this ingenious invention has come into the limelight after the introduction of cryptocurrencies, especially bitcoin. The most well-known implementation of blockchain technology is the Bitcoin. Bitcoin uses blockchain to maintain its public ledger of every single transaction ever made with Bitcoin.
Before you read further first let’s start with some quick definitions. Blockchain is the technology that enables the existence of cryptocurrency (among other things). Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented. A cryptocurrency is a medium of exchange, such as the dollar or Rupee, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
The blockchain technology was conceptualized by a person (or group of people) known as Satoshi Nakamoto in 2008. It was implemented the following year by Nakamoto as a core component of the cryptocurrency bitcoin, where it serves as the public ledger for all transactions on the network. Through the use of a blockchain, bitcoin became the first digital currency to solve the double spending problem without requiring a trusted authority and has been the inspiration for many additional applications.
In 2016 and 2017 many people and industries were hit by Ransomware attacks, most infamous among those were the WannaCry Ransomware and Judy Malware attack. In such attacks, the attacker asks for ransom in Bitcoins. Then comes a question, Why Bitcoin? Why not anything else? Well, the answer to this lies in the process of a Bitcoin transfer transaction. Bitcoin has become the standard currency for ransomware crooks to demand their fee for returning encrypted files and systems to victims, and the hard-to-trace nature of the cryptocurrency has arguably played a role in the rise of ransomware. All the transactions you make using the Bitcoin currency are completely anonymous. They can’t be used to identify you personally. Instead, whenever you trade in bitcoin, you use a so-called private key associated with your wallet to generate a bit of code – called an address – that is then publicly associated with your transaction but with no personal identifying information. And in that way, every transaction is recorded and securely signed in an open ledger that anyone can read and double-check.
A Blockchain wallet or Bitcoin wallet is a software program where Bitcoins are stored. E-wallets allow individuals to store cryptocurrencies. In the case of Blockchain Wallet, users can manage their balances of two cryptocurrencies: bitcoin and ether. Once the wallet is created, the user is provided with a Wallet ID, which is a unique identifier similar to a bank account number. Wallet holders can access their e-wallet by logging into the Blockchain website, or by downloading and accessing a mobile application.
Currently, blockchain is being used to solve problems other than cryptocurrencies. Instead, it is a great solution for almost any platform or product that requires trust, such as keyless automobile entry authentication. The idea behind blockchain, in short, is to be able to establish and verify trust without the need of a centralized system. Instead, this power would be given to a decentralized network, making it not only more secure but also both more efficient and faster to scale. Blockchain technology offers a lot of potentially disruptive power, and companies are already in the race for different product offerings. As the industry continues to grow, blockchain will bring good results in future.