Blockchain Technology

If you have been following cryptocurrency investments, you may be very well-aware with Bitcoin. Well, then you may have also heard about the Blockchain Technology which was originally conceptualized for the Bitcoin blockchain by a person (or group of people) known as Satoshi Nakamoto. However, the technology has found new uses in today’s tech driven world. But before we discuss other potential uses of the technology, let’s briefly go through all that is there to know about the technology.

What is Blockchain Technology?

In the most basic sense, Blockchain refers to a growing list of records(or blocks) that contain immutable digital information. These blocks are linked and encrypted using cryptography. So in a more technical way we can define Blockchain as a distributed, decentralized, public ledger wherein data assets are distributed and not copied or transferred. Blockchain allows you to share data in a secure way.

What are blocks made of?

‘Blocks’ of a blockchain is mainly made up of three elements that are:

1. Data block which stores transaction information like date, time and amount.
2. A cryptographic nonce that is an arbitrary number and distinguishes a block from other blocks and is created randomly with each new block.
3. A cryptographic hash that stores data of the previous block.

How Blockchain works?

A blockchain is a set of blocks and to add a new block to the chain, these four things must happen:

1. Transaction:

For a new block to be created, a transaction must occur where the user enters transaction information

2. Verification of transaction

Once a transaction has been made, it needs to be verified by a majority of nodes(network computers) to be entered as a transaction in a block.

3. Assigning a hash to the transaction(new block)

Each transaction on verification is assigned a hash that also depends on the previous transaction's hash and even the slightest change in a transaction creates a new hash.

4. Storing transaction in a new block

The transaction when hashed can then be entered into a new block in the same order it occurred.

Is a blockchain transaction secure?

When it comes to security, blockchain can be safely said as the most secure since hacking in order to change information in a single block would require changes in every single block’s hashes which would require enormous computing power and is close to impossible to go back and make edits.

Uses of Blockchain Technology:

Apart from cryptocurrency exchange, blockchain technology has many more uses and is slowly and gradually making its way in today’s tech-driven world in the following ways:

1. Payment processing, money transfers and Cross-Border Payments
2. Secure sharing of medical data
3. Anti-money laundering tracking system
4. Blockchain Internet-of-Things (IOT)
5. Supply chain and logistics monitoring
6. Personal identity security through Digital IDs
7. Asset Management
8. Blockchain music
9. Copyright and royalty protection
10. Immutable data backup
11. Digital Voting mechanism
12. Weapons tracking
13. Trading
14. Accounting and Financing
15. Original content curation

Summing Up:

Blockchain is still a developing sector that has immense potential as businesses are still speculating about its potential. Blockchain is not a new technology and has been here since1991. Over the years, Blockchain has undergone scrutiny and has continued to find its relevance in various sectors.

Since blockchain integrates the Internet and the real economy, this cutting-edge technology will only grow in the coming years. Stats clearly suggest that the global blockchain market is expected to be worth $20 billion in the year 2024.