What is Blockchain Technology ?
For most people living on planet earth, it is certain that you have heard the term “blockchain” thrown around these days, or at least the term “cryptocurrency” will ring a bell. Well, the cryptocurrency works on the concept of Blockchain technology. Even though it sounds complex, it actually is not. In simple terms, a Blockchain is a series of time-stamped data (block) that is immutable and stored everywhere (chain).
Blockchains are an unaltered digital ledger of transactions that can be used to store virtually anything of value. For instance, a person sending his friend some money via a bank, he first approves his end of the transaction. Then the bank approves the same and sends the money to the recipient. Now, normally, this could take a few days, and also, the bank can edit or modify the details thereby causing security issues. However, if this were done via blockchain, the transfer is between the sender and the receiver. There is no third party and therefore is done significantly faster. As a result, privacy is maintained and the transaction is secure.
Like traditional client-server based services, blockchains don’t use a central server or location. They are decentralized, meaning that any information added to the blockchain is accessible by anyone on the network. Yes, this instantly makes you think that the data is not safe. However, on the contrary, it is much more secure. Even though it is transparent, the data cannot be traced as each block contains a unique address without giving away your IP address or username.
Definition of Digital Confidence
In the case of blockchain technology, private key cryptography provides a powerful property tool that meets authentication requirements. The possession of a private key is property. It also prevents a person from having to share more personal information than they would need for an exchange, leaving them exposed to hackers. Authentication is not enough Authorization is: having enough money, transmitting the correct type of transaction, etc., you need a network distributed point by point as a starting point. A distributed network reduces the risk of corruption or centralized failure.
This distributed network must also commit to recordkeeping and the security of the transaction network. The authorization of transactions is the result of the whole network applying the rules for which it was designed (the blockchain protocol). Authorization and authentication provided in this way allow interactions in the digital world without relying on (expensive) trust. At present, entrepreneurs from industries around the world have realized the implications of this development: unimagined, new and powerful digital relationships are possible. Blockchain technology is often described as the backbone of a transaction layer for the Internet, the basis of the Internet of Value.
In fact, the idea that cryptographic keys and shared accounting books can encourage users to protect and formalise digital relationships has an imagination that is going crazy. Everyone, from governments to IT companies and banks, is looking to build this transaction layer. Authentication and authorization, vital for digital transactions, are established as a result of the configuration of the blockchain technology.The idea can be applied to any need for a reliable registration system.
Applications of Blockchain Technology
At present, many SMEs make use of blockchain technology to generate greater transparency and precision in the digital information ecosystem, and they are driving knowledge of technology in segments starts from infrastructure to public policy.
Banking is just the beginning. However, from a macro perspective, banking institutions function as critical stores and value transfer centres. As a digitised, secure and tamper-proof ledger, blockchain might serve the same function, injecting better precision and exchange of information into the economic services ecosystem.
Elections need authentication of voter identity, preservation of secure records to monitor votes and confidence counts to decide the winner. Sooner or later, blockchain tools could function as an integrated infrastructure for casting, tracking and counting votes, potentially reducing the need for counts by taking electoral fraud and dirty play off the table.
Blockchain-based processing projects such as Golem are allowing users to rent their CPU capacity and be rewarded with tokens. Similarly, Ethereum has been informally called the "global supercomputer" because of its ability to execute smart contracts, and its mining exploitation is resistant to ASIC ( which allows everyday PC owners to compete proportionally with large mining operations).
Companies that offer cloud storage often protect customer data on a centralised server, which can mean greater vulnerability of the network to hacker attacks. Blockchain cloud storage options allow for decentralised storage and, for that reason, are less prone to attacks which will cause systemic harm and extensive data loss.
Supply Chain Management
One of the most globally relevant features of blockchain is that it allows more secure and transparent control of transactions. Supply chains are fundamentally a set of transaction nodes that are linked to move products from point A to the point of sale or final implementation. With blockchain, as products change hands in a supply chain from manufacturing to sales, transactions can be documented in a permanent decentralised register, which reduces delays, additional costs and human errors.