Hi There!… Through this article, you are going to find a deep insight into the world of blockchain technology in very simple terms. This post would find you ways to completely understand the different facets of the most promising technology, Blockchain!. Additionally, this chapter is going to give you a sharp perspective on how blockchain technology can help you live a better digital lifestyle and helps you in your digital finance management.
What is Blockchain Technology in Simple Terms??
Blockchain Technology is a kind of decentralised network which means there is no central authority to regulate its functions. Secondly, blockchain technology records each and every transaction in a chronological ledger by the form of blocks. Thirdly, these blocks of data are secured with the cryptographic methods called chain. So this is the idea behind the most flourishing and fascinating blockchain technology.
Key Point: Blockchain technology is a distributed decentralized ledger of encrypted data blocks thriving in a network.
Table of Contents
- Brief Origin of Blockchain technology
- How Blockchain works exactly?
- Core Features of Blockchain Technology
- Key Benefits of using Blockchain technology
- Why we need blockchain technology to improve our lifestyle and businesses?
- Real-World Applications of Blockchain Technology
- Blockchain Industry- A Summary
The advent of Blockchain is expanding its horizons with its intangible benefits to society. It is the time and the moment that every people on earth must be more aware of the galloping technology and its influence over the common man’s practical lifestyle.
Ok friend, let us flame up to grasp the crucial aspects of this powerful and striking technology in detail.
Brief Origin of Blockchain Technology
Lets us start conventionally by knowing the origin of the blockchain concept. Really I am curious to write about this topic, I feel like presenting another wonder of science about the concepts of blockchain.
Ok!. Do you know who invented blockchain technology?. Its Satoshi Nakamoto!. To be fair this is not a name of a person or an individual entity. Rather it is the pseudonym of a group of geeky wizards who have conceptualize the idea of Blockchain in the year 2008. So basically, Satoshi Nakamoto clubbed and curated the concepts of data storage, cryptography and networking to establish the pioneering blockchain system.
- Data Storage
How Blockchain Technology Works Actually?
Hey! How Blockchain technology works exactly?! Man!. This would be the first thought when we sound the word “Blockchain” around us. Correct! isn’t it!!. But in the next five minutes of reading this article, you would be surprised to know about every key term in the blockchain arena. Sounds fab?!. Read On Buddy!. You know what? Blockchain is really a complete set of curated format or process. As we discussed earlier, Blockchain records every transaction with a timestamp. By understanding how this data storage and recording is achieved would automatically define the working of blockchain. This process of recording and curating the data with a complex mathematical function formulates the concept of blockchain, which in turn gives them the power to dominate over other techniques. The core process involved are,
- Hash Function
Hash Function is the combination of numbers and alphabets used to encrypt the raw data of the transaction. In the blockchain, each single data entity is recorded with the hash function of the preceding transaction. Hence it is difficult to corrupt. The formula is,
New Transaction + Previous Record’s Hash Function => New Record’s Hash Function
The nonce is a peculiar feature in cryptography. It is simply called as the random one-time-code. For every hash function generated, there will be a nonce attached to it. Even the supercomputers would find it difficult to identify this peculiar nonce. Blockchain is secured with complicated mathematical concepts.
Next, its time to know about the blocks and nodes. For a certain number of transaction, the blockchain would segregate the entries as a form of blocks linked to one another. Say each block contains some 10,000 transaction entries. Every block is shared with a group of computers in the network to check the data’s validity. These computers in the network to check a transaction’s validity are called nodes. If the majority of the nodes approve the validity then the transaction is recorded and no further alteration could be made. This sharing of the chain of data blocks to the nodes in the network for validation is referred to as a distributed public ledger.
There are certain nodes which solve complex proof-of-work challenges. And those special nodes which establish a strong proof-of-work challenge is called the Miner. Proof-of-work is nothing but the successful placement of each transaction in a block. Whereas this process of placing a transaction onto a block requires more hardware requirements and processing time. That is considered being a random process with low success probability!
Now, do you feel proud that you are no novice to the blockchain world?!. Great you have made it! Okay!,Now, let us put our eyes on the compelling features of blockchain.
Core Features of Blockchain Technology
First, let us understand the main features and capabilities of this technology.
By this way, we would get to know about the technology’s spread and reach in every consumer sector.
- No central point of contact or authority, which means it is more expensive for hackers to plot attacks.
- Speed and accuracy of the transactions which is recorded with a timestamp.
- The structure of this blockchain is add-only. Which means the data blocks can only be added no deletion or alterations could be made.Just like real-life events. Once happened is happened, we cannot change the past. True Right?!
- Even the teensy bit of data is encrypted, which means every data in the blockchain is secured and shielded.
- It’s completely immutable, that is the technical term, which means data cannot be altered at any cost.
- Transparency-The data is in distributed or shared ledger, that is every computer in the blockchain network should own the responsibility of reliability.
- Consensus Algorithm is the key to transparency. That is a general agreement on each data in the distributed network system.
- No intermediate party or third party is involved between the sender and the receiver. That eventually attributes to no transaction cost!!.
I hope your mind is now nourished with the idea behind the blockchain technology. Its compelling features that promise to handle the complex world around us. Yup! you got my point!. Now, we are going to see the applications of blockchain to tackle the complex situations in the real-life.
Key Benefits of using Blockchain Technology
In this section let us open our mind to understand how blockchain fits into the real-life situation to solve the complex problems.
Blockchain in Fintech Services
At once we heard blockchain in finance we would get the thought of Bitcoins. Yup!. Bitcoin is growing the popularity as a cryptocurrency and the medium of trade, exchange in this digital era.
The decentralised structure would pave the way to better efficiency, speed of the transaction and obviously would shun the transaction cost existing in the current scenario.
Blockchain in Government Decisions
Blockchain government would facilitate recording each and every transaction of the government in a public digital distributed ledger at a low cost. Also, the book of accounts could be maintained clean and authentic in all government organisations.
Blockchain in Education
Blockchain education would reduce the cost of the education system prevailing now. Paper and pen method would be transformed to complete digital methods of teaching and evaluations.
Blockchain in IoT
In the world of IoT,blockchain would stupendously help in recording the data in every state for the optimum usage of services from various devices in the IoT network.
Blockchain in Healthcare
All the medical records of the patients could be maintained in a foolproof way with more security methods. Data accuracy, speed of availing the medical facility can be achieved with the help of blockchain technology.
Blockchain in KYC/Identification
All the KYC identification now becoming biometric. These identifications should be protected in a more secure system like blockchain. Blockchain helps to record and store all the personal and biometric information of the people in a secured and curated system.
Blockchain in Entertainment Industry
Companies like Spotify have already adopted the blockchain technology in their system. As blockchain is immutable all the artist’s creation could be protected in a secured strategy.
Blockchain in Insurance Industry
The insurance industry has got a massive amount of personal data collected from the public. These data and information could be protected and recorded with the help of blockchain
Blockchain in Currency and Trade
Currency and Trade rule the world. Transactions should be recorded to prevent anything unfavourable are supposed to happen. Blockchain helps in easily jotting down the
Blockchain in Real Estate Industry
The paper record could be made as a digital asset. Real estate brings in new opportunities every day, blockchain would suitably enrich the industries group.
Blockchain in Supply Chain Management
To match the demand and supply, blockchain serves as an entity to store the information, secure them and networking with the peer groups to understand the actual concepts.
Blockchain in Legal Contracts
The legal contracts could also be made digital with the help of blockchain. By this way of doing, a whole lot of documentation process gets executed.
Why we need Blockchain Technology to improve our lifestyle and businesses?
Blockchain would impart a highly secure system of data storage and retrieval. It does increase the efficiency in all forms of a business transaction. By adopting blockchain tools and technologies in your lifestyle, would render astonishing benefits and simplify your daily chores.
Real Life Blockchain tools that exist among Us
Many of the banks such as Barclays have imbibed the blockchain system in their transaction. Almost in all industry blockchain is marking its powerful impact. IBM blockchain solution has developed an application for easing the transport system. THis is just the beginning, Blockchain would disrupt every industry in the years to come. So keep calm and know more about blockchain in your iBrooklet stream.:-)!.
Blockchain Technology Industry- A Summary
East or west Blockchain is the best. With this era of blockchain data storage, data networking, data sharing and data security could be made with ease to establish the efficiency and power to control things around the world.