What are Blockchain Companies?
Blockchain companies harness the power of blockchain technology to manage cryptocurrency transactions and store them on a public ledger rather than a private ledger. ‘Blocks’ are completed transactions that are added to a growing number of existing ‘blocks’ in chronological order which constitute a chain. However, this chain is managed by market participants in a decentralized fashion and the transactions don’t have to face centralized scrutiny and record keeping. A copy of the blockchain is delivered to each node and that is downloaded on every computer that is connected to the network. Some of the Top Block chain Companies utilize the distributed ledger technology (DLT) which is the foundation of blockchain technology.
- Blockchain technology has been destined to create major changes in the IT industry and completely revolutionize it in the coming span decades.
- It has been compared to the advent of Open-Source Software which came out 25 years ago but took more than a decade to become an important entity in modern application development. It will be a few years before blockchain technology becomes more cost-effective and more efficient in sharing information between open and private networks.
- Blockchain was originally developed as a method to maintain a record of the virtual currency Bitcoin, and it is now being used in various commercial applications. Today it is utilized in the verification of transactions of digital money. However, any document can be digitized, coded, and inserted into the blockchain. Blockchain developers of some of the best blockchain companies create indelible records of the documents and this helps in verifying the document by the entire community rather than a single centralized authority.
- Since blockchain works on a peer to peer topology, the data can be uploaded on thousands of servers globally and stored there. This data is viewed by the entire community and any person logged onto the network can view any changes that have been incorporated in a particular document in real time. It is virtually impossible for any single entity to take over the entire network.
Hurdles in adopting blockchain technology-
- The interfacing of the DLT with the transaction processes must be seamless and the rapid setup, training, and reduce the problem resolution time.
- Security is a problem that has led many top banks to the investigation of the digital currency arena. The banks expect that a new system must be devised which allows the utilization of DLT without encroaching upon the control of the central bank on its currency and also secure the system against attack.
- Identity verification is supposed to be under the control of central authority and central banks. This has led to a need for a single digital identity passport authorization system.
- Regulation is also a very important concern as many questions regarding the validation of transactions, addition of new participants, and overall management of the blockchain have been raised.
It is safe to say that blockchain is in its infancy stage. This means that there can be many setbacks in the technology deployed and many bugs in the software developed to incorporate blockchain technology in the real world application.