What is Blockchain Technology?
between the users (nodes) of the system. This transaction is sent throughout the network of nodes
- ing sure that the information or transaction contained in that block is legitimate, accurate, and desirable for perpetual linkage to the chain (decentralized or open ledger).
To effect the attachment of the block to the chain, certain users (referred to as “miners”) will have
- ematical problem that requires the application of immense computing power and the art of cryptography. A process so complex that a typical computer network that conduct “mining”consumes a substantial amount of electricity ranging from a reasonable $3,000 electric bill to as far as consuming an approximate 173 megawatts of electricity (equivalent to a quarter of the average output of a nuclear power plant) or spend approximately $170 Million Dollars on electricity cost (based on USA residential electric consumption rates), just to continuously mine cryptocurrency
Should the miner be successful in decrypting the code, and thereby attaching the data block into the chain, a reward shall be generated by the system in the form of a coin or token—hence the name “Cryptocurrency” or referred to as “Bitcoin”— being
- tocurrency in the market. These rewards (coins) brought about the dawn of a new type of virtual cur- of cryptocurrency, Blockchain offers a multitude of applications that defeat most of today’s information processing and storage systems. By its nature, Blockchain has the capacity to lessen or even eliminate threats to information integrity and security—perhaps even avoid or expose corruption easily. Combined with the element of incentivizing proof of work (attaching the data block to the chain), it creates a well-monitored system
- ing, and self- regulated ( decentralized) that has proven to be an effective platform in today’s digital ecosystem.
One possible application of Blockchain technology is its utilization in a community or organization that requires a substantial amount of data processing and storage—much like how any local government unit ( LGU) or commercial organizations may operate. Imagine a city- wide Blockchain system that processes each resident’s records and transactions from the barangay level up to the municipal level. This system may cover a multitude of LGU services ranging from the issuance of business permits, city healthcare monitoring, education statistics, security& disaster risk management, and alike. The same goes with a commercial organization where all the systems for accounting, purchasing, sales, payroll, marketing, or human resource may be housed in a single, unalterable, and decentralized system.
All these data shall then be placed within the local Blockchain in their true and accurate state that covers not only the fact of transaction, but also all relevant details such as the person who processed it, the time it took to complete the transaction, and the true amount of money that was transacted by the resident, to name a few. This way, all transac-