What Is Blockchain Technology And How Does It Work?

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Blockchain has become popular for different users and developers around the world. Many use it for verification, security, and data transactions. 

But what exactly is blockchain or blockchain technology?

Blockchain is the mechanism by which each new transaction is added to new pieces of data or “blocks,” which are then entered into the system and linked to a chain of other blocks to form a transaction.

It is a type of database that collects and stores electronic data on a computer system. Blockchain technology has the potential to transform the way most businesses operate. It groups data into blocks, chains them together, and distributes or duplicates the chain among multiple participants.

The concept of blockchain technology has the potential to revolutionize or alter the different kinds of industries, including finance, healthcare, and insurance sectors. 

Inthe finance industry, blockchain can remove any frictions or delays in consumer banking, lending, and trade finances, among others. Meanwhile, in healthcare or pharmaceutical industries, exploring blockchain can trace products through the supply chain, prevent counterfeits, and locate recalled products within seconds. 

Then, in insurance industries, blockchain has helped companies increase speed, reduce costs, and prevent fraud.

Likewise, the Philippines is continuing to lead the way in the field of crypto assets and blockchain technology. Many Filipinos have increasingly found interest in the use of cryptocurrency. 

Social media has shaped the way the public views cryptocurrency. Due to this, more and more Filipinos are becoming aware of the value of cryptocurrency as an income-generating investment.

Blockchains are well known for their crucial role in Philippine cryptocurrency such as Bitcoin. Cryptocurrencies are basically digital currencies or tokens that can be used in order to purchase goods and services. 

Cryptocurrency uses blockchain as a public ledger as well as an advanced cryptographic security mechanism to ensure that online transactions are always recorded and safe.

Because each cryptocurrency has its own irrefutable identification number that is linked to one owner, the security of blockchain ensures that all records of data are secure in a way that makes it difficult for hackers or other users to change or cheat the system. It, therefore,helps make cryptocurrency exchange Philippines more secure, traceable, transparent, and efficient. 

Moreover, the pandemic has amplified the cryptocurrency movement in the Philippines as more people look for innovative ways to increase efficiency in transactions, particularly in the payment system. 

Blockchain technology can be used in money transfers. It can be less expensive and faster than using existing money transfer services. Blockchain technology also allows users to secure their personal information such as social security number, date of birth, or any other important user information. 

In addition, blockchain technology can also be utilized with NFTs or Non-fungible tokens. NFTs are tokens that contain anything digital – from art, music, GIFs, and video games and it allows users to own the rights to that piece of art or collectible. By using blockchain technology with non-fungible tokens, it is guaranteed that only one copy of a piece of art or collectible exists. 

To learn more about blockchain technology and how it works, take a look at this infographic from Coexstar PH.

Blockchain: What Is It and How Does It Work?