Enterprises Adopt Blockchain Technology for Bitcoin Security

By CIOReview | Friday, December 11, 2015

FREMONT, CA: The emergence of Bitcoin transactions has raised concerns on its security and reliability. To address this growing concern among enterprises, blockchain technology has ushered in this era of digitalized transactions. Blockchain is a database consisting of all Bitcoin transactions that have been executed says Larry Leob for InformationWeek.

A blockchain is broken down into two parts namely transactions and blocks. Transactions are the data stored in the blockchain that includes the entry of Bitcoin transactions in a chronological order. On the other hand, a block is the current part of a blockchain that records recent transactions and stores it as a permanent database. Every time a block is filled a new block is generated. These blocks are linked to each other in a proper linear order.

The blockchain database is shared with all nodes participating in a system as it provides complete information about any value that was transacted at any point in the past.

Many enterprises are adopting the blockchain technology for their Bitcoin transactions. IBM introduces a protocol for smart contracts that is based on the blockchain technology. This protocol uses the code that powers blockchain to create a derivative system that can create digital contracts recorded publicly and securely over computer networks worldwide. Another company called 21 Inc is taking pre-orders on Amazon with native hardware and software support for Bitcoin protocol.