What is blockchain?-Introduction to Blockchain and its benefits.
It is difficult to understand new technology particularly when the technology isn’t something that you can see and touch. Blockchain is one of those technologies. In most recent years, people started to take interest in Blockchain technology.
But most people out there have no clue about this technology. Here is the brief introduction of the blockchain for everyone who is looking to dig deeper into the subject.
Introduction to Blockchain
Blockchain definition is founded by Satoshi Nakamoto who is the founder of Bitcoin. Bitcoin is a digital currency, invented in 2008. In the past decade, with the revolution in technology, Blockchain is also growing very fast.
Blockchain is a decentralized network that distributes the data of its transactions all over the network. Blockchain was also published in Gartner’s Hype Cycle as one of the emerging technologies in the next 5-10 years.
Looking back to the half era of computer technologies are mainly centralized. Blockchain has distributed ledger that can store transactions. A distributed ledger is one of the keys, shifting from centralized to decentralized. So, Distributed ledger (also called shared ledger) can be described as a ledger of any transactions which is stored on different sites all over the network. There is no centralized database.
Key features of Blockchain
Here are some key features of the blockchain.
1) Decentralized System
2) Safer and Secure System
1. Decentralized System:
Blockchain is a first decentralized system in which data are store on multiple sites. In which there’s no single authority that approves transactions. If one or more nodes fail, the database remains accessible.
2. Safer and Secure System:
Blockchain is the safe and secure system because Blockchain is series of blocks that store data in Hash functions with the timestamp that’s why data cannot be changed or overwritten. Banking and payments, cybersecurity, Supply chain Management, Forecasting, Network and Internet of Things, Insurance, Cloud Storage, Charity, Voting, Government, Public Benefits, Healthcare, Energy Management, Online music, Retail, Real Estate, Crowdfunding and many more are working on adopting Blockchain Technology to make their business faster, more efficient and secure.
One key feature of blockchain is immutable (unable to change). Most of the people think is it immutable? Yeah, it is. In blockchain, data cannot be changed. No duplications occur. Unchangeable records can be created. Once data has been written in blockchain we cannot change it, not even system administrator can change it. It is a key pillar of trust among strangers or even in smart contracts. It is useful for the database of financial transactions.
Use cases of Blockchain
Blockchain has abundant of use-cases, some of which are given below.
1.Blockchain in Banking Sector
Blockchain in the banking sector can help us to revolutionize it with amazing features. Our current existing banking sector depends on central authorities causing high charges and yet no security in contrast to Blockchain. If our banking institutions are converted to blockchain we will be able to save extra money going for the funding of central authorities while providing increased security and transparency. Blockchain shall not be limited to the monetary processes only instead they can be helpful in other industries including the medical field, music, art, loyalty programs, insurances, capital markets etc.
2. Data Credibility
Blockchain ensures the security and transparency of different forms of data. In governmental processes, for example, Blockchain can help us regulate the voting processes. Here it can be very helpful in avoiding the issues such as rigging and fake votes etc.
3. Real Estate Transparency
In real estate world, it can help us in validating the property rights and securing the property transactions which in turn can save us from stealing and fraud attempts on properties.
In the Supply Chain Management, Blockchains are currently being used to solve problems by eliminating the need for a trusted third party to certify raw materials, components, or finished products, as they travel through a supply chain.
From recent hype of blockchain and cryptocurrencies, it is no more an exaggeration to claim that Blockchain is, in fact, one of the most swiftly emerging technologies of the new era. Blockchain can help us solve the issues of traditional network systems ensuring maximum security, transparency and immutability making it almost impossible for the hackers to attack the network. It is already being incorporated in many businesses including loyalty programs, jobs portals, health sector, capital markets, real estate and many more. It is no doubt that we will be seeing blockchain as a common ingredient of many new startups.