Blockchain technology, maybe you had heard this term about cryptocurrency. If you did not find out what the technology is, then, believe me, you need to know. Blockchain is one of the technological advances which would have multiple implications in the future. Many countries have already started deploying this innovative peer to peer technology for transforming the various sectors. In this guide to blockchain technology, we will help you in understanding blockchain technology from scratch.
The first time, when you had come across the word "blockchain technology" (might be from some crypto enthusiast), you may have scrolled -what is blockchain technology? The Blockchain is undoubtedly a genius brainchild of Satoshi Nakamoto (a pseudonym to person or group who invented Bitcoin in 2009) which is being noticed by the new companies, startup even government authorities, as the solution of various systems.
Blockchain for dummies can be explained as a simple way of transferring the information from A to B in an automated, secured and transparent manner. Suppose A initiates the transaction, then simultaneously the process of creating a block will start. Thousands or millions of distributed computers will verify this block of a transaction on the network. After the block or transaction got verified (after solving the complex mathematical algorithm), the unique, verified block will be added to the open distributed ledger known as the chain of previously confirmed blocks or Blockchain.In this guide to blockchain technology, we also want to assert that the network is highly secured through cryptography (somewhat like encryption!) that users can only edit the few parts of Blockchain and that too if they have private keys or digital codes mandated for editing.
After the brief introduction to blockchain technology, let us try to understand how Blockchain works through this guide to blockchain? According to some enthusiasts, who are well aware of blockchain technology, consider it as the "internet of value" where anyone can publish any information which is accessible to anybody in the world having the internet connection. Similarly, Blockchain permits anyone to send value anywhere in the world where the file of Blockchain can be accessed. Blockchain technology is the smart amalgamation of three leading technologies: cryptography, peer-to-peer network of distributed ledger and computing for storing the record of transactions on a network.
Cryptography keys (meant for maintaining the secured network) contain private and public keys which enable the completion of transactions between the parties. Individual transactions on Blockchain must have both these keys to produce a secured digital identity reference or digital signature( used for authorizing and controlling transactions.) The large number of people which are meant to approve the transactions, use their digital signatures on peer to peer networks. When the deal gets authorized by consensus and certified by mathematical verification, the secured transaction takes place among the parties involved. Thus, this guide to blockchain technology can sum up that blockchain users utilize the cryptographic keys to complete different types of digital interactions on peer-to-peer networks.
As Blockchain has been hyped buzzword amongst the industrialists, startup founders and also amongst the various authorities of the government, we must explore Blockchain and its benefits in this guide to blockchain technology.
Decentralization: A single entity does not store information, but everyone in the network owns the information (cannot edit until you have private keys!). No involvement of the middleman but the transaction gets recorded on the chain itself, hence a democratized system.
Transparency: In terms of the transaction, the network (not in terms of the identity of the person) is transparent as everybody can access the data on an openly distributed ledger of the verified transactions. It aids in providing traceability and also reduces the chances of duplicity.
Immutability: You can access the data but cannot tamper it unless you have the private keys to edit it. Blockchain helps in information dissemination more easily.
Security: Cryptography that is, digital codes are used to secure the data with the help of unique private keys to each user.
Thus, blockchain technology has the benefits of the need for the present and future. So, the communities who misconceived the technology are now working to utilize Blockchain for better outputs.
In this guide, till now we understood about what technology is, how it works etc. etc. Now, let's move on to the real world, where this technology is helping the industry or have the potential to revive or upgrade the system deployed by various institutions. So, let us find out the blockchain technology and its applications in this section of guide to blockchain.
Thus, more you wish to dig, more you can find the applications of blockchain technology in the various sectors of industry from health to education, governance to banking, every system can be revived by deploying the Blockchain in the system. So, this guide to Blockchain hopefully helped you to know about one of the latest technologies and its utility.
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