In the past few years, cryptocurrency has dominated discussions in several countries as people debate over its implications. However, there is no understanding of how these currencies function and why they are such a hot-button topic. Similarly, blockchain and its implications are one such hot-button topic that have seldom been understood.
Blockchain for Dummies: Where is Blockchain Headed?
Simply speaking, a blockchain system is a network of computers that all carry the same version of a file, including all the updates made to the information in that file. The so-called ledger for all blockchain transactions that are part of the network of these computers is updated as and when a new transaction occurs. Technically, there is no actual money being exchanged, but the change in values in the blockchain denotes how much cryptocurrency you own at any given time. This value can be used to create transactions on this blockchain ledger in exchange for services, and the “money” is instantly transferred over the blockchain as part of a new transaction.
How Secure is a Blockchain?
The security and speed that blockchain technology provides is unprecedented and has implications far beyond business. Every transaction on a blockchain ledger is unique and cannot be changed once part of the blockchain. What that means is, every time a new transaction is added to the ledger, every computer in the network updates its version of the ledger until all the ledgers match. Thus, any transaction once recorded becomes permanent.
What about Fraudulent Transactions?
Every time someone tries to create a fraudulent transaction using hacking, they race against the entire network of computers. A blockchain derives its encryption strength from the number of computers that are a part of it. It is an airtight system that allows one to create business transactions online with complete anonymity.
How Strong is the Blockchain Technology Network?
Blockchain technology is only as strong as the combined computing power of all the computers on the blockchain. Whenever a transaction is created on the ledger, a mathematical problem based on a private key is passed to each computer. This private key is only available to the creator of the transaction. As soon as one computer on the blockchain solves the mathematical problem, the blockchain ledger is updated and then the updated blockchain ledger passes on to every other computer.
One rotation of a transaction on a blockchain takes about ten minutes. During that period, blockchain technology is vulnerable to hacking. Someone who can hack access to the private key that belongs to the transaction creator, can solve the mathematical problem before the blockchain does. This gives them the power to change the transaction and hence steal currency. To be able to do that requires a tremendous amount of computing power though. The strength also depends on the complexity of the mathematical problems created which are part of the system code. Blockchain testing is a prerequisite to creating a stable blockchain.
How is Blockchain Related to SaaS Applications?
Making a secure blockchain is a herculean task and not any amateur coder can accomplish it. SaaS-based service providers are the best fit for creating blockchains. The applications of blockchain technology are far beyond cryptocurrency. A blockchain can also be used to create data sharing networks that keep the data as secure as it can possibly be. Even government agencies have acknowledged the strength of a blockchain when it comes to keeping sensitive information secure from any attacks.
Gridle & Blockchain Technology: A Match Made in Heaven
Gridle has spent years offering SaaS solutions to a large variety of clients. Blockchain was a natural addition to our already diverse portfolio. We believe in the long-ranging promises of the blockchain technology. It can be used very effectively in transferring data from one point to another at the fastest speed yet, while keeping it encrypted end to end. So far, unhackable and the best way to preserve anonymity while creating exchanges online, blockchain technology is the future of all data transfer.
With one foot in the present, and one in the future, we understand what it takes to create a successful blockchain. We provide solutions from initial coding to the final testing. A deep understanding of the way that blockchain technology works is what makes us differentiate our services in the market. Benefit from our Blockchain based services today!