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Saturday, September 25, 2021

Blockchain Technology: A Quick Explanation with it’s Application!

blockchain

In this article, we’ll try to give you an overview and some insights about this emerging technology called Blockchain.

The world is advancing every day and technology isn’t an excuse that also keeps ripening. We all might notice one thing in common, in every year or a period, a trend in tech will emerge like the arise of EVs currently, the great hike in popularity of bitcoin, etc. Now, the emergence of Bitcoin showed the world about this fascinating technology which is Blockchain – the driving source of cryptocurrency. You will understand why I exaggerate this tech in further reading. Ok without any further delay let’s get into this topic.

In 2008, a person (or group of persons) going by the name Satoshi Nakamoto created the blockchain to serve as the public transaction record for the cryptocurrency bitcoin. To give you an overview, Blockchain is a method of storing data in such a way that it is difficult or impossible to alter, hack, or cheat it. Through the use of decentralization and cryptographic hashing, blockchain, also known as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent. This technology can be used in a variety of ways. Blockchains are most commonly used as a distributed ledger for cryptocurrencies like bitcoin.

Blockchain Technology Explained:

Simply said, blockchain technology is a decentralized, distributed ledger that tracks the provenance of digital assets. The data on a blockchain can’t be changed by design, making it a real disruptor in industries like payments, cybersecurity, and healthcare. Our expert will explain what it is, how it is used, and its history.

A Google Doc is a good analogy for understanding blockchain technology. When we produce a document and share it with a group of individuals, instead of being duplicated or transferred, the document is disseminated. This provides a decentralized distribution chain in which everyone has simultaneous access to the document. No one is locked out while waiting for another party to make changes, and all changes to the document are logged in real-time, making them entirely transparent.

Working:

Blocks
Credit: The Bangkok Post
  • Each transaction/info is logged as a “block” of data as it occurs. These transactions depict the movement of a tangible (a product) or intangible asset (intellectual). The data block can store any information you want, including who, what, when, where, how much, and even the state of a shipment, such as the temperature.
  • Each block is linked to the ones that came before it and those that came after it. As an asset transfers from one location to another or ownership changes hands, these blocks form a data chain. The blocks validate the exact timing and sequence of transactions (time stamps), and they are securely linked together to prevent any block from being changed or inserted between two other blocks.
  • Each successive block reinforces the prior block’s verification, and hence the entire blockchain. The blockchain becomes tamper-evident as a result, giving the key strength of immutability. This eliminates the risk of tampering by a hostile actor, and creates a trusted record of transactions for you and other network users.

Essential Components of a Blockchain:

crypto
Credit: Euromoney Learning

Multiple Ledger Technology:

The distributed ledger and its immutable record of transactions are accessible to all network participants. Transactions are only recorded once with this shared ledger, eliminating the duplication of effort that is common in traditional corporate networks.

Immutable Records:

After a transaction has been logged to the shared ledger, no participant can edit or tamper with it. If a mistake is found in a transaction record, a new transaction must be made to correct the error, and both transactions must then be visible.

Smart Contracts:

A collection of rules called a smart contract is stored on the blockchain and executed automatically to speed up transactions. A smart contract can specify requirements for corporate bond transfers, as well as payment terms for trip insurance.

Importance and Blockchain Applications :

Credit: Freepik

Information is the lifeblood of business. The faster and more accurate it is received, the better. Because it delivers immediate, shareable, and entirely transparent information kept on an immutable ledger that can only be viewed by permissioned network users, blockchain is excellent for delivering that information. Orders, payments, accounts, production, and much more may all be tracked using a blockchain network. You can see all facts of a transaction end-to-end because members share a single view of the truth, providing you greater confidence as well as additional efficiencies and opportunities.

The rise in personal data theft is one of the drawbacks of digital transformation. Hackers are attempting to gain access to government databases. Millions of Americans’ names, Social Security numbers, birthdates, addresses, and driver’s license numbers have been revealed as a result of database intrusions, such as the 2017 Equifax database breach. Blockchain data formats, according to Booz Allen Hamilton, enhance network security by minimizing single-point-of-failure risk, making database breaches more difficult.

Government contracting, according to the World Economic Forum, is the largest sector of government spending with the highest potential for corruption worldwide. Through automated contracts, a blockchain-based procedure can permit third-party scrutiny of transactions and give better objectivity and uniformity. Transactions and participants would also be more transparent and accountable.

Like this, there would be numerous applications based on this tech which we’ll experience in the future.

Whole Story Short:

  • Created by Satoshi Nakamoto in 2008.
  • Blockchain is a method of storing data in such a way that it is difficult or impossible to alter, hack, or cheat it. Through the use of decentralization and cryptographic hashing, blockchain, also known as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent.
  • Each transaction/info is logged as a “block” of data as it occurs.
  • The data block can store any information The distributed ledger and its immutable record of transactions are accessible to all network participants.

Conclusion:

Blockchain technology is here to stay, thanks to a slew of potential real-world applications such as speedier cross-border payments and smart contracts. In the domains of business, finance, law, medical, and real estate, blockchain technology will only continue to flourish.

As more businesses see how this tech may benefit them, they will invest more resources, money, and time in the technology, resulting in even more use cases. While we recognize that blockchain technology will continue to be a difficult issue for many, it does not have to be so for you. We hope that this tutorial has given you the courage to discuss blockchain with your friends and acquaintances.

Vishwamoorthy
Pursuing Engineering. Content writer by passion to technology. One who likes following mobile technology and it's revolutions on years coming. Keeps improving everyday!

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