Blockchain is an increasingly popular term in the field of digital currency. This type of technology applies to any network that uses peer-to-peer file transfers to transfer money. The Internet has numerous examples, but the most popular uses include File Transfer Protocol (FTP), Hypertext Transport Protocol (HTTP), Simple Network Management Protocol (SNMP) and Web Services. These protocols are all networks that allow people to access each other and share information and data over the Internet.
The term “blockchain” was coined by an individual known as Ulrich Spiess, who used the term to describe the system of software applications that took an unknown transaction and negotiated terms of payment through the use of math formulas called hash tables. The software could be modified or enhanced at any time, greatly changing the way that the original protocol operated. When this happened, the original protocol was no longer useful and the work involved in its maintenance became impractical and time consuming. This led to the birth of several new protocols for use in different areas and Blockstream was one such protocol that attempted to eliminate some of the work involved in this type of system.
Blockstream is a software tool that makes transactions between different contributors to the network much more efficient than they would be if the transactions were performed individually. This is achieved in a few different ways. The most common method is through the use of a ledger called the block chain. A block chain allows transactions to be validated against an agreed upon reference image which serves as the trustworthy point of reference for all types of transactions.
One of the most important aspects of the Blockstream approach to distributed ledger technology is that all transactions are recorded on the ledger itself and not on servers or computers that are not part of the Blockstream infrastructure. By doing this, all transactions can be verified as they happen. This verification process makes it impossible for an attacker to execute a fraudulent transaction since the transaction can not be changed afterwards. This is another reason that the Blockchain has become so valuable to financial technology and computer technology alike.
There have been several attacks on the Blockchain but all of them have been unsuccessful. The most notable of these attack attempts was on Gate.io which was an attempt to attack how the Blockchain managed the transaction logs. Read more on this here
The success of the Blockchain as a reliable and secure distributed ledger technology means that its applications are now being explored around the world. Financial institutions, companies, governments and individuals are now using the Blockchain as a way to transfer money and other valuable items securely over the Internet. With its many potential applications, the future of the Blockchain looks very bright indeed.