Blockchain Technology Is Changing the Innovation Aspect in the Digital Economy

Fundamentals Of Blockchain Technology

A Blockchain is a data structure or a decentralized ledger used for keeping records of transaction or any event. It records all the transactions across peer to peer network. Blockchain is a chain of block that contains information. As we all know that it’s a distributed system it confirms the transaction without the central authorities (Steen, 2007). He is shows that the system is connected to a single node which clearly reflects that this is a centralized network system. Drawback such system is that if central system shuts then every other node gets disconnected. Image b reflects decentralized network where there is interconnection between the nodes. Each single node is connected to another node.

Key benefits of the technology is that it increases transparency, security is increases, unchangeable records, transaction time is fast and as there is no third party involved it also reduces cost. But there are some aspects that can be hindrance in the adoption of this technology. There are the technology is complex to understand, it can increase anonymity that means who is performing what transaction is unknown and there are lots of challenges faced in implementation of this technology. All these points are also some of the reasons which are hindering the banking sector from implementing this technology.