A person or group of person under the identity Satoshi Nakamoto first quoted the notion of Blockchain technology back in 2008. Experts are still unclear on the part of who should be given the credit for this amazing technology. Since then the technology has had a soaring demand in the global market.
While discussing about Blockchain, generally there is a misinterpretation regarding the ‘sense’ the term conveys. The services that Blockchain technology offers cannot be circumscribed to financial transactions alone that utilizes bit-coins, crypto-currency and smart ledgers but is also applicable in various other arenas because of the Distributed Ledger Technology (DLT) that its functioning is based on. Better understanding of Blockchain makes it applicable in several other fields that are beyond our scopes.
Let’s break the ice on Blockchain technology through this article…
What is Blockchain?
As the name suggests, Blockchain is a developing list of records called ‘Blocks’ that are connected using cryptography. Cryptography ensures the secure communication in the presence of third parties, generally advisory committees or governing bodies. In Blockchain, ‘Block’ stands for ‘Digital Information’ and ‘Chain’ stands for ‘Public Database’.
‘Blocks’ in Blockchain will have information like:
- Date, time and invested amount
- Information about participants involved in transactions
- Information that can distinguish one block from another. This unique code is called ‘hash’ that helps us to tell it apart from other ‘look alike’ blocks.
How Does Blockchain Work?
- User Request for transaction is received
- A block that represent the transaction is created
- The introduction of the new block is notified to other nodes in the network
- All the involved nodes validate the transaction and user's status using known algorithms
- A verified transaction will involve cryptocurrency, contracts, records and other information
- The Block is added to the chain
- Transaction will be confirmed and executed
Applicability & Future of Blockchain:
The scope of Blockchain is scaling newer heights and as a result is making deep impacts on the society. The potentiality of Blockchain encompasses many businesses in the global market. With Blockchain technology, financial firms can perform transactions and settle security in minutes as opposed to days. As far as other businesses are concerned, the flow of goods and related payments can be optimally managed.
Apart from applying Blockchain in financial services, digital identities, smart contracts etc. Blockchain technology has ‘sky-high’ scope in other turfs like real estate, health care, supply chain management, pharmaceutical, mobile industry etc.
Whether in financial or in non-financial services, the applicability of Blockchain comes along with multiple perks like increased transaction speed, reduced cyber risk, traceable flow of information etc.
In a recent study by a company exercising the Blockchain platform, it was said that Blockchain can be applied in pharmaceutical industry for drug provenance and fighting fake drugs. Leading mobile companies across the globe are planning to manufacture smart phones that are integrated with the Blockchain platform. As Blockchain itself and its integration with other platforms provides mounting opportunities, the future of Blockchain-based employments are also equitably mounting.