Blockchain has been around since 2009 but many of us are still unaware of what is actually going on in this industry. Of course, as blockchain becomes more popular and is used on a wider scale across various industries – including iGaming, it is important to understand what is going on.
Here, we thought we’d tell you about some of the key things you should know about blockchain in 2021.
What is blockchain?
If you haven’t spent much time reading about blockchain then you might need to begin with learning what it actually is. When you think about cryptocurrencies like Bitcoin – do you know how they are able to track large volumes of transactions? How do they keep these transactions secure?
The answer lies in the fact that blockchain is the solution to this. Blockchain holds timestamped transactions that are linked together in block form. This creates a chain of blocks and keeps everything secure.
How does it work?
Typically, blockchain systems contain both blocks and transactions. These two types of record are unique, and this keeps everything secure. Each block in the chain has a cryptographic hash, coming from the previous block. This cryptographic hash uses the data from the previous block, and this creates a compact string.
Due to the nature of the string, you’ll find that tampering with them is almost impossible. As a result, the blocks don’t need to have serial numbers.
What are the biggest databases?
Over the last few years, blockchain has really taken the world by storm and financial experts have been backing this technology. There are some databases that are bigger than others, with the most obvious one being the Bitcoin database.
Additionally, you’ll find that R3 is used by some major banking institutions and has received financial backing from large companies like Bank of America.
It is also worth noting Hyperledger which is an open-source solution. Back in 2017, IBM announced that it would be building its own blockchain services that would allow customers to build their own secure blockchain networks.
How secure is it?
Blockchain is arguably one of the most secure systems out there and it is often compared to traditional banking which isn’t as secure as many people think. There are a number of reasons why blockchain is considered secure, including the fact that it is decentralised and so it isn’t possible for it to be altered retroactively.
Additionally, users of blockchain technology can have their privacy preserved which has its benefits. However, some have noted that this aids cyber criminals in keeping their transactions anonymous. In this case, caution is advised for anyone hoping to use blockchain on a larger scale.
It’s something to watch
If you aren’t clued up on blockchain and how this technology works, now is the time to educate yourself further. It is expected that 2021 and the coming years will be big for blockchain as some of the larger institutions implement this into their systems.
We’ll be looking at blockchain in more detail over the coming weeks and speaking to industry experts on the topic. Sign up for our newsletter today so you don’t miss out.