Bitcoin and other types of cryptocurrency have permeated our lives over the past several years. Bitcoin prices have skyrocketed, allowing many early buyers and miners (people who “mine” for bitcoins by joining in the computing process for transacting bitcoin) to heavily profit. While bitcoin has been discussed thoroughly, there is an underlying technology behind cryptocurrencies that makes such cryptocurrencies so prominent, and what also makes bitcoin “mining” possible! This technology is called “blockchain”.

Many people might have heard of the term “blockchain”. However, people barely know its intricate mechanics. Blockchain is the technology that makes bitcoin and other cryptocurrencies safe. Unlike other government-officiated currencies, cryptocurrency doesn’t have a political organization that certifies its value. Therefore, at first glance, it seems that cryptocurrencies would be extremely susceptible to hacking. After all, cryptocurrencies have significant value. However, while there is occasional news of bitcoin exchanging platforms hacked, there has never been a case when the bitcoin system itself has been. This is all due to the data-altercation prevention architecture of blockchain technology.

사진출처: https://www.crypto-news-flash.com/what-is-a-blockchain-definition-simple-understandable-explanation/

Blockchain technology is a decentralized network that records “blocks”. Essentially, data is not stored in a single data server, but in devices all around the world. Since there are multiple copies of the data spread throughout the internet, there is no centralized point of vulnerability that hackers can exploit. When new data (ie: a transaction of bitcoin) is recorded, a new block is added to the “chain” (hence, the name “blockchain” originates). However, to alter the information already recorded, there is a need to change all blocks recorded in the same network.

Due to blockchain’s extremely secure nature, the technology is now spreading out from its original uses for cryptocurrency. For instance, due to blockchain’s decentralized nature, the traveling industry is currently investigating blockchain to increase transparency and provide a direct connection between hotels and visitors. Such developments would eliminate the intermediaries and have costs for travelers.

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