The technologies underlying the bitcoin are the most promising line for the development of the Internet. We will tell you how they can be used in business to rationalize various operations and create new opportunities. Blockchain is one of the most important technologies that have appeared in recent years: many experts believe that in the next two decades it will change our world in the same way as the Internet did in the previous twenty years. However, there is some misunderstanding among the users of the internet and ordinary people about exact technologies, which are used in Blockchain and its further variant cryptocurrency. It is a good question to discover:what is Blockchain and distributed ledger technology? How does it works? Why it I potential revolutionary innovation. I think that if to make a big survey and put these questions to the people the level of knowledge will be not very high. Especially it will be concernedto the understanding, what is a distributed ledger technology? The main goal of this text is to shed light on these technologies and consider their future.
Distributed ledgers, Blockchain and Bitcoins are working and based on the internet. Before we are going to discover the question, what Blockchain distributed ledgeris, we should realise and observe the role of the internet in modern life. In the last decade, computers have filled our lives. Now they are in almost every family. We are used to them and do not imagine our leisure without this miracle machine.
Together with computers, the Internet has entered our lives. It has become an integral part of every person’s life. Now people cannot live a day without checking mail and visiting their favourite sites. The Internet is not only an assistant in everyday work, the Internet is a different world, which has its own mailboxes, libraries, photo galleries, games, shops. With the help of the Internet, people can travel to different cities, visit tourist sites, communicate with people.
Recently, many people have asked the question: “Is the Internet harmful or useful?”. I think that there is no definite answer to this question. After all, on the one hand, the Internet is a very good and useful thing. On the other hand – the Internet has many negative functions: dependence, a waste of time, money, health.
Nevertheless, we must agree that we cannot imagine our life without it. It covers the major part of the Earth. In addition, it is obvious that internet became the best place to earn money. It connects all big corporations. Even money have become digital and spent on the internet. There are also countries, where people even have not used a cash.
Transfer of the business online have put the question about the safety of the private information. Before the online databases became a reality, most part of the secrets of any company had been material and the only way to steel, it had been a physical violence according the company. In time on the market have appeared the technology of distributed ledger.
What it is? Distributed ledger technology is an information storage technology, the key features of which are the sharing and synchronization of digital data according to the consensus algorithm, the geographical distribution of equivalent copies at different locations around the world, and the absence of a central administrator. This technology can have really big influence on the future of the business on the internet. It creates a local system for any corporation and lower the need of huge paper work. Distributed ledger technology that is used in big companies usually is a private that makes the protection of the private information safe a lot.
Such understanding of the distributed ledger technology can be new for the people who think that it was a synonymous to the Blockchain. However, it is not true. Blockchain as a phenomenon is a type of the distributed ledger technology. Blockchainis built on this technology. The biggest speciality of it is that the information of any chain save in the special blocks. Than they are uniting into the chains and you achieve some program. The most popular thing that is created by the Blockchain is Bitcoin or any other cryptocurrency. The same principles is also used in smart contracts that are also becoming very popular and spread all around the world.
The future of the distributed ledger technology (Blockchain is included there) is going to be perspective. Despite of the problem of bitcoin scale, it does not matter to the distributed ledger technology. At this moment, three is no good alternative to this technology that can be so effective in the speed, safety and affordability for the ordinary users. The future is going to be online, so you cannot avoid the fact that distributed ledger technology will be your future too.