You can talk to anyone on the mobile phone directly but if you wish to buy something or do any work which requires transaction then it would require an intermediate which makes sure that the money has been transferred by one party to another. But what if we do those works without any intermediate and it’s possible by the technology “Blockchain”. We all know that technology makes human’s work easier day by day and like those technologies there is a technology named “Blockchain” which is quite popular these days and it has the valid reason to be popular.
Many people heard Blockchain with the word “Bitcoin” and they believe that blockchain is a technology that powers bitcoin and it is true also as it is blockchain’s original purpose. But blockchain is capable of so much more. You can understand blockchain as a distributed database which is not just on some computers but on thousands of computers or (more appropriately) a suite of distributed ledger technologies that can be used to record and track almost anything related to value from the financial records, medical records, land titles or much more.
Now, what makes blockchain so special in tracking or recording data as compared to banks and other government bodies. So here are some points to give you clear vision about blockchains:
Blockchain stores data in batches called blocks which are linked together in a chronological manner to form a chain of blocks. It just like our old financial ledger, you can’t change the data in it, but you can update the data similarly you can’t change data of a block in a chain but instead, you can update the change in the new block which is added to that chain specifying the date and time. The blockchains have the whole history of every record.
The Blockchain is designed to decentralise and distributed across a large network of computers. This decentralization of data reduces the chances of data tampering.
In order to add a new block to the chain a few things to happen before. First, there is a cryptographic puzzle which has to be solved to create the block. That computer which solves the cryptographic puzzle shares the solution to all the computers present on the network, this is called proof-of-work. Then the network verifies the proof-of-work and if correct, then the block will be added to the chain. The combination of these mathematical puzzles and verification by many other computers ensures that we can trust each and every block on the chain.
In business, all prefer not to show their business or financial records instead we rely on intermediaries, such as banks or lawyers. These intermediaries view our records and keep them confidential. These intermediaries build trust and able to prove the records to be true. But these intermediaries add more time and more money spent. If the records are stored in blockchain then we could not require a middleman to prove the authenticity of records because we know that the added blocks are verified to be true and can’t be tampered with. So, we can show records to anyone we want, saving a considerable amount of time and money.
This type of trusted P2P (peer to peer) interaction with our data can revolutionize the way we access, verify and transact with one another. Blockchain can be implemented in many different ways because it’s a type of technology and here some example,
Blockchains have so many features such as fault tolerant that means that it doesn’t get affected if some computers don’t work. And, it is very difficult to hack because to hack a blockchain hacker has to first hack thousands of computers at the same time which is very difficult and makes it safe and secure. This technology has lots of scopes and it is developing very quickly so it’s very good if you have knowledge about blockchain. So, keep updating yourself regarding blockchain because who knows when it comes to fashion and help you to earn some.