Technology has made our lives better and we can’t argue about that. It has certainly made us more connected with the world. Now we can easily shop products through apps, buy fresh groceries without stepping out, and avail different services all under one platform. Technology has overtaken everything from our home to workplace, restaurant to movie theaters, shopping to all sorts of services.
As we usher into digital transformation, we are constantly bombarded with phenomenal discoveries that simply boggles our mind. Blockchain is a new-born baby of this digital world. You might already have heard of Blockchain technology, but do you really know everything about it? If you are eager to know about this technology, we bring you every tidbit of information on Blockchain technology, a technology that has great potential for a safe future. Let’s decode the buzz word ‘Blockchain’.
What Is Blockchain Technology?
Blockchain is a digital book i.e. ledger containing records of all transactions that have ever been executed digitally. It is an internet-based, distribute, public database that can chronologically record online transactions between two parties in real-time and involves complex mathematical calculations to prove the authenticity of the data. In simple words, a Blockchain is a specific type of data structure used to transact across nodes or participants. The ownership rights are kept in cryptographically stored and linked blocks that contain records that remain anonymous.
In Blockchain technology, transactions can only be added once they are validated by miners involved in solving the mathematical problem. Through this revolutionary technology, digital goods can be transferred without the need for centralized authorization of transactions.
How Does Blockchain Work?
- Blocks are an integral part of Blockchain technology under which a block of chain is first created and tagged along with a cryptographic hash code.
- Since every block has its unique hash and nounce code (randomly generated), miners are deployed with the task of mining a block which isn’t that easy especially when a large chain of block is concerned.
- To mine each block, miners use special software (that can solve complex mathematical problem of finding a nounce that generates an accepted hash) and when they find the ‘golden nounce’, the concerned block is added to the chain.
- Once block mining is done and a block is successfully mined, the miner is rewarded financially and the change is accepted by all the nodes on the network.
- Nodes help in the functioning of the network and can be any kind of electronic device that maintains copies of the Blockchain.
- The new block can only be added after multiple miners solve the same math problem and confirm the answer given by the first miner. This way, Blockchain ensures that all the transactions done over a network remain secure and free from intruders.
Advantages of Blockchain Technology
Here are some applications of Blockchain:
- Banking: Blockchain technology can enable efficient use of KYC procedures and banking operations. It can help in eliminating the delay in processing of vendor payments and the need for producing documents to track the status of online transactions in real-time.
- Cyber security: By using Blockchain, leakage of sensitive data can be minimized to a greater extent.
- Governance: Blockchain technology can be used for protecting and maintaining digital identities of citizens, monitoring welfare programs run by the government, tracking procurement of key products and services across different departments of the government etc.
- Capital Markets: Blockchain can facilitate faster transfer of securities and payments and reduced trading costs by removing intermediaries.
- Agriculture: Since food supply chain is often characterized by asymmetry of information, Blockchain can help stakeholders (particularly poor farmers with small land holdings) get their dues on time by improving data sharing.
- Telecom: With the help of Blockchain, the task of eliminating spam calls and financial fraud will become easy.
Why Use Blockchain?
Since re-mining is an extremely complicated process, it’s difficult to manipulate the Blockchain technology. Blockchain is a transparent ledger where every action or transaction can be checked and viewed easily. The data entered on the Blockchain is immutable thus prevent fraud through manipulating transactions and the history of data. Even though Blockchain is in nascent form in India, but with its amazing traits, it’s certainly going to be a game-changer wherever technology is concerned.