Blockchain technology and especially crypto currency mining have created a vast demand for computing power. Is this good or bad for our planet?
This revolutionary new tech is taking the world by storm, particularly with the mainstreaming of cryptocurrency. We are convinced that this technology has many different business applications. Although we are still not sure which problems it will solve nor which will be the first real life applications for blockchain technology. Banking, real estate titles and personal medical record may be some of the new applications that might successfully deploy blockchain.
There are two different types of blockchain systems: public and private. To understand the difference between these two systems, it is essential to first understand what blockchain technology even is.
Blockchain is similar to what it sounds like. It is a chain of blocks. The blocks are digital information, usually about stuff like date, time, and amount. The chain is a ledger that strings multiple blocks together using simple algorithms to ensure a certain line of continuity while simultaneously protecting privacy.
In other words, blockchain is a decentralized system that is good for banking if one does not want to be freely giving out all of his or her information. It is hard for hackers to tamper with a blockchain system and therefore cryptocurrency has a certain level of protection in that regard.
With all of that being said, some blockchains are more secure than others. A conventional blockchain is a public blockchain. This is what Bitcoin and other cryptocurrencies use. Anyone can have access to these blockchains, which is part of the appeal.
There are some downsides to public blockchains, unfortunately. They require a lot of computing power to stay online, as the traffic for these blockchains is almost always higher than the traffic for a private blockchain. While blockchain technology is specifically designed to be very secure, it is not foolproof.
With everyone being able to easily access a public blockchain, the risks of bad actors attempting to sabotage the operation become much higher. This risk can be mitigated by having a private blockchain.
A private blockchain is no different in its basic functions from a public blockchain. It is, however, not available to everyone. To gain access to a private blockchain, one must be given authority by the network starter to join the blockchain system.
Both blockchain systems have pros and cons, and both offer something unique that conventional systems cannot offer. It is important to become more familiar with these kinds of technologies as the world moves forward into the digital age. The internet has opened up a whole new world and blockchain is one of the keys to the kingdom.