How Blockchain Will Replace Banks and Resellers


Every year, internet commerce grows in popularity, but the possibility of cyber-attacks and partner distrust keep it from competing with traditional businesses. Blockchain, a revolutionary database system, solves this problem. These databases do not have a single control center, and activities are certified by other network participants, making them invulnerable to hacker attacks and allowing you to check the accuracy of information about a partner – this is the way Internet commerce will go in the future.

Ten or fifteen years ago you wouldn’t even dare to think that something like this is even possible. TonyBet mobile casino app for iPhone and Android seemed like a crazy idea as well because who knew that Steve Jobs could create the new generation phone that changed the entire market as we know it?

Blockchain is a New Kind of Databases

Blockchain is a database, or electronic information repository, similar to the records in an Excel spreadsheet. Bank databases, for example, maintain track of how much money is in accounts, but police databases keep track of who broke the law and when they did it. The idea is the same here, except that, unlike traditional databases, information in Blockchain is stored on each computer in the network rather than in a single repository. Blockchain technology records transactions in such a way that they cannot be modified or deleted; the data is only updated regularly.

As a result, rather than a table, the data is stored as a series of updates. You deposited $100 into the account, and the database recorded this information as a data block. Then you handed someone $50 and placed an additional $100 into their account. However, the information in the first block indicating the amount of money will not be changed to 150; instead, two new blocks with updates will be inserted. Each one is identified by a unique code that specifies how it links to the blocks before and after it.

Blockchain Data Cannot Be Forged

Every day, reports emerged that a hacker has stolen money from bank accounts or hijacked a celebrity's email. This is because the information is easily available. Furthermore, Blockchain eliminates the possibility of data theft. If a hacker inserts a phony one between existing blocks, the system will detect the change since the new block's code will deviate from the sequence of the others. Changes in the code are affected by changes in the blocks, therefore any changes are quickly observed by miners.

Because Blockchain is a distributed database, information is saved concurrently on hundreds of computers, rewriting the whole chain will not work. Even if the information on one user changes, the substitute will be seen by other users since they have the original data preserved. Banks, in particular, need to secure their data since they keep money in the form of numbers in database cells. If this data is changed, an attacker will be able to steal money from accounts and disrupt the bank's operations.

Transfer Money Without Intermediaries

When a seller and a buyer decide to establish a contract, they search for a third party to oversee the agreement's integrity. The bank functions as a mediator in financial transactions, ensuring that the money does not go missing and reaches the intended receiver. The bank also sends a confirmation of payment, whether it's for a gas bill or a plant purchase. Financial organizations achieve this by keeping track of transactions in their databases. We employ their services since it is the most dependable mode of dispute resolution.

However, Blockchain data storage technology eliminates the need for intermediaries. Consider the following scenario: you wish to pay for goods from an online retailer using Blockchain. Your data chain will show that the money has been moved to the shop, indicating that you have confirmation. All network members will "see" the money transfer, and it will be reflected in the update of your data. Because the system is impenetrable to hackers, it is impossible to take money or remove records during the transfer procedure.

Because the system would have detected and removed the bogus record if you had falsified a block of data, the store also knows that the translation is genuine. Everything works the same way it does at a bank, except you don't have to pay a middleman. Banks are not required with this technique, and with the growing popularity of online commerce, Blockchain has the potential to become a rival to established payment systems.

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