Introduction
In today’s era, technology is useful only when it solves our business problem. We are surrounded by technology everywhere and without technology, the pace of working of every country will be reduced. The progress of every country depends on technology. Nowadays a technology is very much discussed that holds the power to change the future, which name is Blockchain.
Blockchain is a distributed ledger technology but firstly we must know that what distributed ledger is.
Distributed ledger is a type of database that is replicated, synchronized and shared among the members of a network. The distributed ledger records the transactions among the participants in the network and every record has unique cryptographic signature which makes the ledger an auditable.
Now let talk on Blockchain
Blockchain is distributed ledger technology which provides a way to record and transfer data that is transparent, safe, auditable and resistant to outages. The blockchain has the ability to make the organization that use it transparent, democratic, decentralized, efficient and secure. It is a technology that hold a lot of promise for the future and it is already disrupting many industries.
There are lots of examples of blockchain but I give you an ecommerce websites example which clear yours some doubts.
Example: -
If you buy a product from Amazon and do with its payment card, then this website gives confidence to the seller that the customer has paid the money. In this case amazon is third party. But the blockchain's arrival will end the work of middlemen and third party. With the help of blockchain customer directly pay to the seller account. And this will also build the trust between customer and seller.
Why Blockchain is Important
There are several points which proves that blockchain is important for us
- It secure the digital information
- It remove the third party system
- Impossible to hack
- Reduce the fraud and corruption
- Send money to the people in the world directly to their account with very low commission or free
- Maintaining the record
- Transparent data
- New way to managing the trust
- Solve the double spending problem
Where Blockchain Technology is Used
- Banking Sector
- Payment & Money Transfer
- Healthcare
- Law enforcement
- Voting
- Real Estate
- Education
- Car Leasing and sales
- Networking and IOT
- Online music
- Stock Trading
- Insurance
- Supply chain management
- Cloud storage
- Energy management
- Govt. and public records
- Retail
- Business and corporate governance
- Credit histories
etc.
How Blockchain Works
Blockchain is important database of all transactions which happening in the network. The database is public and therefore not one by anyone party. It is distributed because data is not store in one computer rather stored in many computers across the world.
The database is synchronized and keeps the transactions up to date. It secured with the help of cryptography which makes it hacker proof. These features are helpful to make this an exceptional technology.Blockchain is network of computers which must approve of a transaction that has taken place before it is recorded in a chain of computer code.
In case of bitcoin cryptography is used to keep transactions secure. After the transaction is validated the detail of the transfer are recorded on a public ledger that anyone see on the network.
In Blockchain the information is transparently stored in shared database and no one party access in middle men. This build the trust among the party as there is no possibility of abusing the system by anyone.
Kinds of Blockchain
- Public Blockchain
- Private Blockchain
- Public Blockchain
In a public blockchain, anyone can write into the ledger / journal without needing any approval. But then you would need some mechanism to handling discrepancies in the absence of central authority and also defense mechanism against malicious users / attackers.
In public blockchain anyone can join or participate in the network but for maintaining the distributed ledger at large scale in public blockchain, there are lots of need computational power. Public blockchain is completely open and there is no privacy for transactions.
- Private Blockchain
In a private blockchain, the participants which are within an organization are the only to have access to the blockchain. They are bound by legal rules and hence they are known and trusted.
In private blockchain, participant take permission to join the network. Private blockchain privacy is more than public blockchain
Who is Using Blockchain
Companies racing to adapt blockchain include USB, Microsoft, IBM and PwC. The bank of canada also experiment on it. Many of companies try to experiment on this technology.
Conclusion
This technology will very much helpful to reduce the fraud and corruption because any country can be developed country only when it is corruption free. In the coming time, blockchain will end the many problems of our business which we are facing today. Blockchain technology has the ability to change the future. If you have any query related to this article, please write down in comment section.
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