Technology

What is Blockchain or Blockchain Technology?

In 2008, Blockchain was introduced by a person or a group named Satoshi Nakamoto to the world in his 2008 Bitcoin Whitepaper.

The identity of Satoshi Nakamoto is still unknown, and many people claimed to be Satoshi Nakamoto, but they all found fake.

A blockchain is a “decentralized”, distributed, public, the digital ledger which consists of records, i.e., called “Block.”

What is Digital Ledger or DLT?

A blockchain is a digital ledger of transactions. It is duplicated and distributed across the network systems on the Blockchain that is known as Distributed Ledger Technology.

Digital-Ledger

In Blockchain, blocks used to record transactions on many networks across the world so no one can make any alteration in the blocks(transactions).

Blockchain technology which uses distributed public ledgers to keep the data in a secure & encrypted manner and any alteration avoided in the transactions so that no one can rewrite it.

The Blockchain is immutable, and no one can tamper the data which is stored in the Blockchain. In Blockchain technology, it provides its user transparency. So a user or customer can track his transaction easily. This is one of the key features of blockchain technology and that’s why it is getting massive attention from big companies to shift their business on the Blockchain. It is a network of computers that share a distributed ledger across all network nodes. This shared ledger, transactions recorded, avoiding the duplication that’s typical of traditional business networks.

Blockchain Technology is the digital currency that eradicates double-spending issues and eliminates the dependency over the central server.

Third parties act as intermediaries for transactions in traditional environments. If you send money overseas, it will pass through a bank. It will not transfer quickly and take up to 3-4 days approximately.

We all know this fact that third party take charges for their services to transfer the data or money and may also take a few weeks sometimes for such transactions. But in the case of Blockchain technology, data or payment tranfers very quickly without waiting for weeks at a low transaction fee as compared to the traditional systems.

Blockchain technology is an open-source technology, and anyone can use it at free of cost so that anyone can use it. It offers you an alternative to the traditional system, and you can transfer your money in the form of the cryptocurrency(Bitcoin). 

The series of  verification in blockchain technology gives you excellent transparency to track the transactions, encrypted data which offers excellent security for your transaction, fast transaction speed , and minimize the high transfer charges, which we have to give in traditional systems.

In the public Blockchain, there are multiple nodes( also referred to as miners) that act as executors of transactions and miners on the network. Before adding to the Blockchain, transactions collects into blocks and store every detail of the transaction, which cannot be rewritten by anyone.

Miners receive a Bitcoin as a reward as per their block verifications. Bitcoin mining is getting popular across the world. China no. One country in the world in bitcoin mining. Miners use their computing power to verify the block and time to verify it depends upon the hash power or the difficulty level.

The “Miners Reward” reduces every 4 years.

The Blockchain is a simple way to pass information from one party to a second party in a safe manner. By creating a Block in this Blockchain, one party starts the process, and then the block is verified by millions of computers around the Internet. Then verified blocks added in a “chain” and create a unique record.

Blockchain is a technology to record the information and makes it difficult or impossible to change, hack it.

The purpose of designing the Bitcoin was to use the specific kind of database that is “Blockchain” rather than standard databases like SQL etc.

Blockchain is different from other databases because nobody is in charge, and it is run by the people who use it. So Bitcoin blockchain is amlost impossible to hack.

How Blockchain Technology works?

Blockchain technology uses digital ledger technology(DLT). Data share on various networks. A copy of the transaction recorded on every single network so that data cannot be a rewrite or altered.

Blockchain-Technology-works

Blockchain is a write-once and makes it a verifiable and auditable record of each transaction.

Why Is Blockchain Technology Popular?

  1. The Blockchain is immutable, and no one can tamper the data which is stored in the Blockchain.
  2. In Blockchain Technology, data cryptographically stored on Blockchain.
  3. Transparency that allows you to  track your data.
  4. Transparency allows you to track your data.
  5. It is “decentralized” so that one able to manipulate or edit the data.
  6. It’s swift if compared with other traditional methods.

So, millions of copies of transactions stored on number of networks across the world. Each copy of the Blockchain is identical and store across a network, which is more difficult to manipulate. If a hacker wants to alter the data, then he will have to alter every single copy that is stored on thousands of networks. So it is almost next to impossible for hackers to manipulate the data.

Can anyone control the Blockchain?

The answer is no. No one control the transactions, as it is “decentralized”.

Blockchain Technology is very sophisticated and has a decentralized form of record-keeping. Blockchain gives you high security and privacy in a very low transaction fee

Advantages of Blockchain Technology

  •  It improves accuracy by removing humans from verification.
  • Blockchain is a transparent technology.
  • It is decentralized, so there are very low chances for a hacker to manipulate data.
  • It eliminates the third parties as we find in traditional systems and reduces the cost of transfection.
  • On the blockchain network, blocks in which transactions stored, verified by thousands of systems.
  • By using Blockchain Technology, transactions completes in minutes. In other traditional systems, transactions take days to complete the transactions(especially cross-border transactions).

Top Companies Using/ Adopted Blockchain ?

The answer is yes, and some top companies have already adopted or working on blockchain technology in their operations.

IBM

IBM-blockchain
IBM

One big giant is moving into the space of cryptocurrency and also providing Blockchain services. IBM has also made some partnerships to lower the costs and increase the efficiency of logistics. Some partners are Walmart, Commerzbank, United Bank of Switzerland, CaixaBank.

Microsoft

Microsoft-blockchain

Microsoft is a well-known tech giant in the world that has been very curious and serious in Blockchain Technology. When no one knew about Bitcoin or cryptocurrency, Microsoft, one of the early companies, had started accepting Bitcoin payments in 2014. Microsoft has more than 30 patents on Blockchain using payment gateways.

Mastercard

MasterCard-blockchain

Just like Microsoft, Mastercard is actively working over Blockchain and has filed over 30 Blockchain patents. It confirms their interest in Blockchain, and they are also working on developing payment gateways using Blockchain and positive in the adoption of Bitcoin.

Ford

Ford-Blockchain

Ford company that is using unique blockchain technology. It is working with IBM and planning to track its raw materials( cobalt) from the suppliers.

Visa

Visa introduced a blockchain platform, in 2016, that would deal with business-to-business payment services.

Blockchain Technology Use in Banking?

Bank of America

Bank-of-America-blockchain

Bank of America is also following the above companies, and it has also applied for more than nine blockchain-related patents. This is a signal that banks are also changing their mind about Blockchain and is open to using Blockchains in its operations. Bank of America is also looking to shift over on Blockchain and provide transparent, secure and fast services to its customers. With Ripple’s XRP, Bank of America may save billions of dollars in cross-border payments every year.

HSBC

HSBC-Blockchain

HSBC Bank is working on the blockchain-based platform. They are planning to shift from traditional paper-based records to fully digital and decentralized platforms so that their customers and investors could track their money in real-time.

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