Latest Blockchain Technologies in the Real World
We often find ourselves in a dilemma when explaining what blockchain is to newcomers. The technology is so advanced with many use-cases that sometimes it becomes difficult to understand the meaning of blockchain. Blockchain is an immutable ledger that facilitates the recording of transactions and various assets in a business network.
It doesn’t matter whether the asset is intangible (patent, copyright, etc.) or tangible (car, house, land, etc.) anything of value can be tracked as well as traded with the help of blockchain network Is. This reduces risk, increases security as well as cuts down on all the costs involved in facilitating intermediaries.
Blockchain came into existence a decade ago and hence it is not the latest technology that we take for granted. Despite being around for so long and being executed by thousands of PoCs as well as by multinationals like IBM, Facebook and Microsoft, it is still largely a new technology. It is not easily understood by the general public.
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However, blockchain is the holy grail that made crypto possible the way we see it today. The statements of great investors like Warren Buffet, who claim bitcoin to be just a fad, make us wonder if the technology we are all so crazy about will have a future of its own. However, before answering that question, let’s understand what a blockchain is.
What is Blockchain? How Blockchain Works
Blockchain is a specific type of database that stores data in blocks which are then chained together. New data is entered in a new block. Once the block is filled with data it is joined to the previous block and it forms a chronological order for the data. Although different types of information can be stored in a blockchain, it has mostly attracted the attention of the financial world. It has been used as a digital ledger for transactions till now.
In the case of cryptocurrencies, blockchain is used in a decentralized manner so that control is not in the hands of a single individual or group, but is collectively controlled by each user. Decentralized blockchains are immutable, meaning that data once entered cannot be reversed.
3 things about blockchain technology
Blockchain was proposed in 1991
data is immutable
Blockchain network is P2P
Blockchain was first proposed in 1991- Scientists proposed blockchain in 1991 with the original motto of storing digital data that cannot be changed or modified. Later, a group of scientists adopted blockchain technology to create a digital currency called bitcoin.
Data is immutable — once the data is stored in the blockchain it is impossible to change. This is the reason behind the increased security of cryptocurrency. Each block in the blockchain is representative of a structural and functional unit. In addition to the data, the block contains the hashed value of that block as well as the hashed value of the previous block. These blocks are then chained together in a chronological order called a blockchain. The data stored in a blockchain system varies from application to application. In the case of cryptocurrencies, it stores the details of transactions. A hash is like a fingerprint for stored digital information. This technology of blockchain makes it highly secure.
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Blockchain network is P2P- Blockchain network is a peer-to-peer system in which each user has a copy of the blockchain. Hence, the entire chain needs to be revised if someone wants to tamper with the information. Therefore, breaking security becomes extremely difficult. This is why blockchain is the future of modern data transfer.
3 Benefits of Blockchain Technology
decentralized system
data manipulation with timestamp
not controlled by a single entity
decentralized system
Blockchain is a completely decentralized system and therefore, there is no one unique database that stores information. There are multiple copies of the system that store the information. Therefore, a structure cannot be targeted.
Data Manipulation with Timestamp
Shows the history of blockchain data manipulation. In other databases, only the updated data is visible. However, blockchain data manipulations come with timestamps. Therefore, the updating history is also visible in the blockchain.
Not controlled by a single entity
Blockchain is not controlled by any one individual or group. Since copies of the blockchain network are available in every node, they can be updated everywhere and anywhere. It enhances the security of the information stored in a blockchain-like database.
Blockchain technology use cases
Blockchain and Cryptocurrency
Blockchain and health care
Blockchain and Gaming Industry
Blockchain and Digital Marketing
Blockchain and Cryptocurrency
Blockchain is the underlying technology of bitcoin and other cryptocurrencies. This has made property transactions extremely easy and secure. The system has been created by cutting out middlemen through smart contracts
