According to the inventions affecting our lives, the best invention of the decade is known as the blockchain invention. After internet technology only, it is considered as the most accepted technology. The basic idea of this technology is to facilitate exchanges on an online platform without the intervention of any third party. In this blog, I will tell you some of the rationale why blockchain technology is called a distributed network and how its invention is contributing to the digital world. Let’s know:
Work of this Technology
The working of blockchain technology will be made easier for you all with the help of an example, suppose there is a cricket tournament going on where around ten different teams are taking part by bidding a certain amount of about 100 dollars to become eligible to play. At the end of the tournament, the team will win 1000 dollars. In such a circumstance the common way that would be opted by the team members is:
- Either forming a contract
- Negotiating the winning amount, or
- Appointing a third party to make it easier for them and to decide the distribution amount.
The common way that would be opted by anyone would have some other consequences as a third party might not always be a trustable party. Secondly, opting for getting into a contract is also not a feasible method as it is going to be a lengthy process. You will need a proper agreement formed by the parties and if the agreement is not properly executed there will further be some other consequences associated. If you are interested in bitcoin trading check the factors that affect the price of bitcoin.
Finally, entering into a contract is also not an easy task as there are a lot of dos and don’ts associated with the contract and it attracts some legal liabilities to be met, due to which the process becomes more expensive. But when the same thing is done with the help of Blockchain technology then all these interstitials will be eliminated which will make the process faster, safer as well as packet friendly. Once the team’s credentials and their status as a tournament are added to this blockchain, all arbiters and other mind-blowing stuff will be gone. Will make the ledger very clear and transparent for all teams and others. Due to which people started investing in this tournament.
The amount so acquired will be added to this blockchain which then after the outcome will become distributed among the true winners. Hence there are no such requirements of agreeing, involving a party or negotiation. The process will become automatic, much inexpensive and hasty.
Reasons For It Being Called A Distributed Technology
- There is an outside party controlling the network
- It is amongst a p2p group
- Transfers are a lot quicker
- The process is inexpensive
- No room for any scam
The topic above has stated one of the very famous technologies that are utilized in the digital world. As we know, the internet was the invention that has been cherished the most by the people of the digital era but after blockchain technology, this has become the most cherished invention of the time. An attempt has been made in this article to familiarize all of you with this technology as well as how it works in the digital space. Hope that gives you more clear and precise insight about the topic discussed in this article and also, I think this article is going to be quite a profitable deal in your crypto path.