November 26, 2018 at 1:20 pm
26 November 2018 at 13: 20 & nbspUTC
You must have heard about the term called "Blockchain Technology" several times in an instant. This exclusive technology is a critical element of cryptocurrencies. Without Blockchain, cryptocurrency, as it would not exist. To give an insight into its meaning, you should look at Bitcoin Economy.
If you're new to blockchain technology, this guide will be the best to get started. And if you're an experienced professional, then you'll learn a thing or two that you did not learn a lot.
Flashback of Blockchain
To start with, let's talk before the blockchain story. Before the technology was ever used in cryptocurrency, it had a modest start as a concept in computer science in the domains of cryptography and data structures in particular.
The primitive form for technology was the hashish tree, which is often referred to as a Merkle tree. Ralph Merkle patented this data structure in 1979 which works by verifying and managing data between systems. In a P2P computer network, validating data was essential to ensure that nothing was changed or altered during the transfer. Furthermore, it helped to ensure that false data were not sent. It is used to maintain and demonstrate the integrity of the shared data.
The Merkle Tree, in 1991, was used to create a "secure chain of blocks". This chain of blocks is a series of data records, each linked to the previous one. The most recent chain record contains the history of the entire block chain. Thus, technology, called blockchain, has come to light.
2008 was the year in which Satoshi Nakamoto (a pseudonym of a person or a group of people) conceptualized the distributed blockchain. It contains a secure history of data exchanges, uses a P2P network for timestamps and verifies each exchange. It could also be managed independently without any involvement of the central authority. Technology is now a backbone of cryptocurrencies like Bitcoin. That's how the blockchain we know today was born.
How does Blockchain technology work?
When a block stores new information, it is added to the blockchain. As the name suggests, Blockchain consists of multiple blocks together with the vault. However, to add a block to the chain, four things must be done:
- A transaction must occur. Let's start with the example of an Amazon impulsive purchase. After hastily clicking on a number of boxes, you went against your final judgment and then make a purchase.
- That transaction must be verified. After the purchase, it is necessary to verify the transaction. With other public information registers, such as Wikipedia, SEC or your local library, there is always someone who is in charge of examining new data entries. However, with blockchain, that work is left to a computer network. These networks usually consist of thousands of computers all over the world. When you make your purchase from Amazon, that computer network rushes to check that the transaction happened in the way you said you did.
- That transaction must be stored in a block. Once the transaction has been verified as accurate and legitimate, it gets the wave to execute. The digital signature of Amazon, your digital signature and the dollar amount of the transaction are all stored in a block. The transaction will probably join hundreds of thousands of others like it.
- Now, a hash must be given to that block. Like an angel gaining wings, a unique identifying code called a hash must be given to the transaction of a block, once all transactions in a block have been verified. In addition, the block is assigned the hash of the most recent block that is added to the blockchain. Once the block has been subjected to hashes, it can be added to the blockchain.
When the new block is added to the blockchain, it is publicly available to everyone to view, including you. In case you have a look at how Ethereum Blockchain is different from Bitcoin Blockchain, you will see that you have access to the transaction data, along with the time, height and forwarding data from the block have been added to the blockchain.
You can also read: how do blockchain transactions work?
The wonderful advantages of Blockchain technology
- The real-time transaction via Blockchain offers better efficiency over time
- Direct transactions exclude general expenses and intermediate costs usually involved
- Reduces the risk associated with computer crimes, tampering and fraud
- It offers a process that is more transparent with proper monitoring of records
- Cryptographic and decentralized blockchain protocols make technology highly secure
Blockchain applications in various industries
Blockchain technology is widely adopted in all countries, as it can be used in many industries, including agriculture, health, education, real estate and smart contracts.
Blockchain in agriculture
Obviously, among the most logical uses of the blockchain stands out agriculture that in these days is afflicted by a couple of challenges. With the growing customer awareness of food safety, blockchain application can play a vital role in addressing the various issues associated with agriculture.
You can also read: Blockchain in Agriculture
Blockchain in healthcare
The blockchain is a champion among the most disruptive technologies that have swept the world. A blockchain is a ledger or a distributed register that allows you to exchange exchanges and exercises that occur throughout the system. The most innovative factor in technology is that once information is added to the public ledger, it is not possible for anyone to change it. The information deposited on the blockchain framework is highly secure and secure. If someone wants to implement a change in a block, it is mandatory to make changes to all the blocks after it.
You can also read: Blockchain in Healthcare
Blockchain in Education
Quite right! Educational institutions are also said to have been set up to run blockchain-based tools or conduct explorations that will help identify the qualities and shortcomings of discounting blockchain technology in education. This is because technology can help the education industry in many ways, such as replacing paperwork, saving costs and many others.
You can also read: Blockchain in Education
Blockchain in real estate
Blockchain technology aims to support only trusted exchanges through a mortgage system. Any data entered in this system can not be ruined by any means. Along these lines, blockchain allows completely secure transactions. These particular qualities make this technology more useful for your case of use in real estate payments.
You can also read: Blockchain in Real Estate
The reverse side of the Blockchain technology
There is always a downside to any system created by humans, and even blockchain is not deprived of this.
Blockchain technology also has a rather steep learning curve, particularly for a typical without a technical background. Because the concepts of computer science involved in technology can intimidate or scare the individual through the increasing popularity of cryptocurrency, blockchains are pushing towards the mainstream with many more resources available to make the topic even more accessible.
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