Blockchain Technology Simplified For Cheap Remittance
FREMONT, CA: Blockchain technology has been the most impactful technology in the recent times as it is an open source Distributed ledger technology (DLT), which has the property of guarding data after it has been entered once into the blockchain. The technology is made up of three important features—the data, the hash, and the hash on the previous block—that create the most secure forms of data and cryptocurrency transfer.
Data is the information, which is carried by the blockchain. The type of blockchain is determined by the type of data stored in it. The hash is a unique code consisting of alphabetical characters to generate an identification of the block. The data stored in the block when modified will concoct a new hash for that block. The hash of the previous block can be defined as a sequence formed from hash generated for each block, either with addition or modification of the blocks. Proof of work is a supplement mechanism that slows the process of creation of new blocks, also called a Hash rate. The hash rate in Bitcoin chain is about 12 minutes per new block.
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After the creation of a new block, verification is carried out by the node to check the uniqueness of hash. With every block, a node is added, forming a chain of its own and these nodes create a consensual algorithm that harmoniously forms a link with unique hash by rejecting the unlike hash in the network. The blockchain stores simple programs or cryptocurrency or data, which are also called smart programs as the world sees it. These smart programs are optimized for application in medical records handling, collection of taxes, and e-notary.
The remittance industry generates approximately 600 billion dollars a year, providing huge importance to blockchain technology. A wallet app that is downloaded from the app store can transfer any amount of money across the globe and the receiver almost immediately gets the transferred funds via Bitcoin. These transactions leave footprints online, which is not owned by the user. The blockchain network can create a “black box” containing the virtual movements of a user. It guards information without providing access to any parties that do not have permission. This feature of a black box will not only provide fences for the online movements of the users but also secures the transactions, which at present the internet lacks.