Blockchain Technology Explained!!

Most of you’ve probably heard of Bitcoin at some point. This blog introduces the technology that makes Bitcoin and other types of cryptocurrency work.


Where Did It Come From:


In 2008, a group of person working under the name of Satoshi Nakamoto, created the blockchain to serve as the public transaction ledger for the cryptocurrency Bitcoin.

Satoshi Nakamoto wanted to create a Bitcoin, a cryptocurrency. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend ( something that happens all too often with physical currency.checks and credit cards).

Normally, our transaction data is held by somebody or some company.We communicate with that data via a 'trust' between our identity and the company with whom we are dealing.We never got to see how a given company performs transactions or who has access to that data.Here comes of the usefulness of Blockchain Technology.


The goals that Blockchain meet:


  • Transparency : The blockchain transactions are recorded in such a way that they cannot be changed without the changes are also being recorded.

  • Security: Every action that happens in a blockchain is encrypted and placed in the order the action occurred.

  • Decentralization : No single authority makes changes to the blockchain. Changes are examined and approved by multiple parties in system.

What Is It:


Blockchain can be loosely defined as a data structure thats holds transnational records while ensuring transparency,security and decentralization. We can also think of it as unbroken chain of records stored in the form of blocks which are not controlled by the single entity.The block is whee the transaction data ( date,time,user name,seller name, credit card details etc) and the chain is the file or database where blocks are stored. All blocks have a unique identifier called a "hash" created by an algorithm.Each of these blocks of data (i.e. block) is secured and bound to each other using cryptographic principles (i.e. chain).


The blockchain is a simple yet ingenious way of passing information from A to B in a fully automated and safe manner. One party to a transaction initiates the process by creating a block. This block is verified by thousands, perhaps millions of computers distributed around the net. The verified block is added to a chain, which is stored across the net, creating not just a unique record, but a unique record with a unique history. Falsifying a single record would mean falsifying the entire chain in millions of instances. That is virtually impossible. Bitcoin uses this model for monetary transactions, but it can be deployed in many other ways.


How Blockchain works:


Where is Blockchain data stored:


As I mentioned earlier, blockchain use decentralized storage concept.Data is stored and synchronized between many physical locations by many entries.


Blockchain based decentralized storage network ( Source>https://www.researchgate.net/)


How is Blockchain Being Used Today:


Cryptocurrency:

  • Bitcoin

  • Etherium

  • Rippie

  • LItecoin

  • Tether

  • Libra

Supply Chain:

  • IBM Blockchain:-provides the status and transparent record of ownership and location of parts in real time.

  • Food Industry: blockchain assists with tracking food -borne contamination anywhere in the path of the ownership the food takes.

Heath care:

  • Medical Chain: uses blockchain to store and use health records so that doctors can better facilitate a tele-medicine experience for patients.

Charity :

  • BitGive: The BitGive Foundation is an American nonprofit organization that solicits bitcoin donations for use in charitable causes. It leverages Bitcoin to offer transparency to donors by sharing real-time project information and financial data. Some of the popular charities using BitGive such as The Water Project,Save the Children and Medic Mobile.

Entertainments:

  • Spotify : connects artists and licensing professionals with tracks on Spotify's service.

  • KickCity: matches events organizers with influencers and provide ticketing.

Exotic cars:

  • BitCar is a blockchain-based platform that allows for fractional ownership in the best performing asset class of the last decade - collectable exotic cars.

Financial service:

  • Companies like Bitcoin Atom,Securrency and ABRA use blockchain to facilitate cryptocurrency exchange.

Future of Blockchain:


At this point, blockchain is a technology with an exceptionally broad set of potential uses. Although blockchain is most famous for its connections to the blossoming cryptocurrency world, several other applications have already been explored. Perhaps even more exciting, though, is that new ways of utilizing blockchain emerge every day. Some of the interesting future use of Blockchain such as :


Copyright Protection: Blockchain could provide more transparent usage tracking of copyrighted materials.

Digital Voting: Provide identity management and practically eliminate the concern of voting data becoming compromised.

Tax Regulation and Compliance: Provide clear records of financial and compliance adherence.

Equity Trading: Change the stock market trading system as we know it.

Smart Contacts: Use blockchain to keep track of what items or tasks are fulfilled in business contracts or wills.

Digital Passports: Identity management, travel management and provided expedited screening.


Problems with Blockchain:


The available versions of the technology have certain limitations and are in ways inappropriate for many digital interactions. While we talk of building the digital backbone to the new transaction layer of the Internet, sometimes blockchains, private cryptographic keys, and cryptocurrencies should not be trusted blindly. We must never forget the fact that not only us but also hackers are getting laced with sophisticated and advanced technologies. There are multiple issues that are resonant in the blockchain space.


Summary:

The blockchain is the leading software platform which is used to record transactions of digital assets like Bitcoin. It’s the backbone of decentralized cryptocurrency and is used to create the public ledger of any digital assets.With the awareness of Blockchain Potential in different domains, many Organization and Government have started exploring the possibilities to use Blockchain.

Multiple courses are available in Udemy (https://www.udemy.com/topic/blockchain/) and if you want to learn more about it, please choose course as per your need and start exploring more!!!


Happy Reading!!. Thank You!!!







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