Jakarta, CNN Indonesia - Some people must have heard the term blockchain. But some may not know what blockchain is and why it is now so popular and underlies the rise of bitcoin and cryptocurrencies.
Bitcoin and other cryptocurrencies, its form is based on a blockchain which contains a public ledger of all transactions on the Bitcoin network. So even though it looks like an asset, Bitcoin does not have a physical form.
Companies such as Amazon, Facebook, IBM believe that blockchain technology can initially track shipments, storing data more efficiently. Blockchain is basically an immutable public digital storage system. Once someone makes a transaction, it cannot be changed easily.
In the financial system, to ensure that no money is lost, all money transfer transactions are recorded in a general ledger. As quoted by CNN, with this system there is only 'one' ledger managed by the platform provider, as a single reference by the transacting parties.
Blockchain consists of two words, namely block which means group and chain which means chain. In short, it reflects the way blockchain works, which uses computer resources to connect blocks to execute transactions.
The fact that this data is stored on multiple computers is fundamentally irreversible and cannot be hacked. To continue this analogy, you have to work backwards, checking each checkbook until you get to the transaction you want to change before making the revision.
The biggest advantage of public blockchains is that information can't really be changed once it's recorded. There are permanent records, and since the ledger is held by multiple entities, it is almost impossible to hack. That makes blockchain ideal for Bitcoin and other cryptocurrencies.
The technology on the blockchain is decentralized, so no authority has full control, but it is split into every computer that has the software installed.
A brief history of blockchain
The person behind the blckchain technology co-created with bitcoin under the pseudonym Satoshi Nakamoto. In 2009 Nakamoto, a mysterious figure wanted a decentralized, permanent, and publicly available tool to record the creation and distribution of every bitcoin.
Quoting Entrepreneurs, so far people have mined more than 18 million of the total 21 million bitcoins that have ever existed. Every transaction in Bitcoin has been recorded on blockchain.
Although Nakamoto designed the blockchain as a public ledger, it wasn't long before a permit-backed blockchain controlled by a particular company or group emerged. Legal blockchain was initiated by Nicholas Weaver, a senior researcher at The International Computer Science Institute.
Companies also use blockchain to do various things, such as managing pharmaceutical information, tracking goods shipments and tracing the origin of food.
Catherine Tucker, a professor at MIT Sloan School of Management, saw tremendous potential in blockchain technology. He sees blockchain as most useful for managing digital currency and tracking health and insurance data.
Tucker said the important thing that adopters of blockchain technology must remember is that the technology is 'growing' and companies shouldn't just take the technology for granted.
He assessed that companies must ensure that they really need this technology and adapt to changes, along with the times.
Source : https://www.cnnindonesia.com/teknologi/20210423193941-185-634097/mengenal-blockchain-cikal-bakal-uang-kripto-seperti-bitcoin