What is Blockchain Technology?

Blockchain Technology

In recent times Cryptocurrency or Bit Coins have become so popular, bit coin is a crypto currency which is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets. The technology behind the transactions of cryptocurrency is known as Blockchain Technology. 

Blockchain Technology

A blockchain is a decentralized, distributed, public and virtual digital ledger that collect all information from the first step of a transaction to the last one, thereby creating a chain of blocks of information. 

For example: In present time when we do online transactions of money for shopping or transfer then we use banks or any other medium like Paytm. All these records of transactions are kept by bank in their database or called as ledger register.In block chain technology their is no mediator, it works on peer to peer network.

When does the Blockchain Technology came into existence?

  • In 1991, the first work on Block Chain was done by Stuart Haber and Scott Stornetta.
  • In 1992, this work on Block Chain was further improved by Haber, Bayer and Stornetta.
  • First block chain was conceptualized by person or group of people named Satoshi Nakamoto in 2008. Satoshi Nakamoto is the name used by unknown person who developed bitcoin, authored the bitcoin white paper and created and deployed bitcoins original reference implementation.
  • In 2016, Russia announces a pilot project based on blockchain technology for automated voting systems.

How does it work?

  • Blockchain is a network of computer that have all the same history of transactions, so the transactions between two individuals get recorded as blocks on this network of computer held by multiple people at the same time. Every ten minutes of transactions becomes one block.
  • Instead of a single company holding an entire database of information regarding a transaction, this information will be distributed among multiple people equally.Each transactions will be validated by each of the individuals on the network and is constantly updated.
  • Transaction information in a block can not be altered and thus shows a clear history of each transactions.
  • In simple words we can say that there will be no company involved as a mediator between the payee and the receiver, There are bunch of software codes which will help to make transactions. For using block chain technology, an app will work as an interface.
  • This technology uses cryptography that helps encoding all transactions, so people on the network don't know exactly what happened but they know that it happened.
  • Block chain are essentially databases that provide proof of who owns what at nay given moment and record of all transactions.
  • It works in a peer to peer network.

 As per one of the Cyber Expert “Blockchain has got numerous applications, some of the emerging applications are the area of banking, financial services, real estate, health care centre, education, insurance sector, electronic governance and cyber security etc. Very soon blockchain technology will prove itself as a game changer”.

This technology works just as wikipedia, where all the information is not provided by any one person and its also not controlled by any particular individual, However wikipedia controls the central server and database whereas in Blockchain technology there is no central server or database.

Use and Possibilities of BlockChain Technology

  • The technology offers and assure more confidential communication of cryptocurrency.
  • It helps banks for safe, cost effective and fast bank transactions.
  • In addition to financial transactions the technology can be used to secure legal documents, health data, notaries and personal documents.
  • This technology will facilitate the delivery of subsidy, distribution of land records, and government financial assistance.
  • It can also be used in cloud storage, digital identification, smart communication and digital voting.
In the latest budget, Government has discussed about this block-chain technology. Currently union minister has said that "a centre will be soon establish in Gurgaon for the research of this new technology". Even the NITI Ayog has mentioned "uses of block-chain may help in the agriculture and farming sector".

Block chain technology has a lot to offer, it is safe because of decentralization  and it also offers transparency.
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