Introduction to Blockchain | Firefly

Introduction to Blockchain

September 16, 2019

What is Blockchain?

Many people may have heard about the Blockchain by now, but don’t have any clue what it is or what it does.  The Blockchain is the backbone to cryptocurrencies, which have been sweeping across the world at a breakneck pace.  You may know of such cryptocurrencies as Bitcoin, Ethereum, Litecoin, and XRP, however there are thousands upon thousands available to research.

While the fun part of the Blockchain is cryptocurrency, there is so much more to this technology, which we will touch on briefly in this post. 

The Blockchain is a distributed database of records of all transactions or digital events that have been executed and shared among participating parties. Each transaction is verified by the majority of participants of the system. It contains every single record of each transaction.

Cryptocurrencies use cryptographic proof instead of third-party trust for two parties to execute transactions over the internet. Each transaction protects through a digital signature.  There is no Central Server or System which keeps the data of the Blockchain. The data is distributed over millions of computers around the world which are connected with the Blockchain. This system allows notarization of data as it is present on every node and is publicly verifiable.
Disadvantages of current transaction system:
  • Cash can only be used in low amount transaction locally.
  • Huge waiting time in the processing of transactions.
  • Need a third party for verification and execution of transactions which make the process complex.
  • If the Central Server like a bank is compromised, the whole System is affected including the participants.
  • Organizations doing validation charges thus making the process expensive.
Benefits of Blockchain Technology:
  • Time-saving: No central authority verification needed for settlements making the process faster and cheaper.
  • Cost-saving: A Blockchain network reduces expenses. There is no need for third-party verification. Participants can share assets directly and intermediaries are reduced. Transaction efforts are minimized as every participant has a copy of the shared ledger.
  • Tighter security: No one can temper with Blockchain data as its shared among millions of participants. The system is safe against cybercrimes and fraud

If you are a Student with Firefly, please check your training for content on Blockchain!  If you are new to Firefly and want to learn about Blockchain, call us today at 877-797-2799 or email 877-797-2799 (US/EMEA) +61-2-8339-3984 (APJC)