Block chain technology, also known as distributed ledger technology, is an Internet database technology integrating distributed data storage, point to point transmission, consensus mechanism, encryption algorithm and so on. Its characteristics are centralization, openness and transparency.
In the report, McKinsey pointed out that block chain technology is the core technology that has the most potential to trigger the fifth technological revolution.
“China‘s block chain technology and application development white paper (2016)” points out: block chain will bring new opportunities for the development of new generation of information technology, such as cloud computing, big data and mobile Internet, and has the ability to trigger a new round of technological innovation and industrial transformation.
The Blockchain is a decentralized digital ledger which contains records of every historical coin transaction. When a transaction is broadcasted into the cryptocurrency network, miners use high-performance computers known as “rigs” to verify the transaction, group it with others into a transaction block, and work to solve the proof-of-work cryptographic puzzle that links the new block to the blockchain.
Miners are responsible for verifying transactions on the blockchain, and are critical to the continuing functioning and security of the cryptocurrency network. Miners are rewarded with a fraction of the cryptocurrencies of the verified transaction.
Blockchain technology is still in its infancy, but the functional possibilities of blockchain are endless-its applications extend well beyond crytocurrency. It’s application in the financial world is already beginning to make transactions of all kinds instant. In the tech industry, blockchains are becoming the preferred way to store all the incoming data from IoT devices. Despite their vast potential, blockchains are not easy to develop and implement. Not to worry, though, tech giants and startups have already been hard at work developing tools to make blockchain technology cost-effective and accessible to single users and businesses of all sizes. Companies like IBM, Microsoft and Amazon are starting to offer blockchain as a service (BaaS) solutions, while start-ups are developing blockchains for specific needs. The opportunities exist for blockchains to transform the way business is conducted on a global scale.