How Does Blockchain Technology Actually Work?

The digital world has long had to deal with a serious drawback; security. As convenient as the digital world is, the space is also at constant risk of hacks. Banks, online casinos and other digital marketplaces are facing a constant risk of security breaches, with cybercrime only increasing in recent years. If only there were a way to take digital security to the next level, make online information truly hack-proof, and usher us into a new era of online safety.

Enter blockchain. Blockchain has become a hot buzzword of late, with many aware of the technology. But perhaps not everyone truly understands what blockchain is, or why it’s so important.

Uncrackable Record Keeping

The biggest problem with online security has always been that digital information is kept in a single location. Online casinos, for example, are keeping records of everyone’s sensitive information, having to stash it on a server. Hence everyone using the online casino has all their records, financial and personal details, all in a single online location. Every cybercriminal in the world knows this, of course, making the online casino’s server a primary target.

But what if the information was distributed across multiple servers, with each digital location keeping a duplicate of the same information? If a single computer were to be hacked it wouldn’t matter, given that every other record of the data would know that an unauthorised change had occurred. A perfect solution. For a hack to be successful every computer sharing the information would have to be breached simultaneously.

That is essentially what blockchain is.

More Than Just Security

Blockchain is perfect for security, but the systems are being used for so much more. Check the latest cryptocurrency news and the versatility of the tech becomes apparent. From digital currency, to NFTs, and so much more, it all becomes feasible thanks to blockchain.

Cryptocurrency have also exploded onto the global stage, with Bitcoin being the most well-known. Digital currency is seen by many as a new era of trading, existing in a marketplace completely separate from traditional banks.

A non-fungible token, or NFT, is a digital asset, such as an artwork, assigned to an individual. An image file was previously the property of anyone that made a copy, but with blockchain it is possible for an image file to be permanently owned. It is still possible for the image to be copied, but only a single copy will have the original digital signature. Hence the original creator of the image can effectively have ownership of their creation, or may sell the creation as they see fit.

The Future Of Online Trading

NFTs and cryptocurrency are still in their infancy. But, it goes without saying, the future of the technology is bright. Where it goes remains to be seen, but there is no question that blockchain has a place in the digital world.

Perhaps the biggest question is how long it will take for blockchain to replace current banking security standards. Beyond that it can only be imagined where the tech will be taken, and how it will be used.