- What is Blockchain? How Blockchain works?
- 3 Advantages of Blockchain technology
- Latest Blockchain developments
We often find ourselves in a dilemma while explaining what is blockchain to newbies. The technology is so advanced with numerous use-cases that at times it gets difficult to understand the meaning of blockchain. Blockchain is an immutable ledger that facilitates the recording of transactions and various assets across business networks.
It does not matter whether the asset is intangible (patents, copyrights, etc) or tangible (car, house, land, etc) anything of value can be tracked as well as traded with the help of a blockchain network. This reduces the risk, increases security as well as cuts down all the costs involved in facilitating the intermediaries.
Blockchain came into existence a decade ago and therefore it is not the latest technology we perceive it to be. Despite being around for so long and being executed by thousands of PoCs as well as Multinational companies such as IBM, Facebook and Microsoft it is still a new technology on a mass level. It is not easily understood by the general public.
However, Blockchain is that holy grail that made crypto possible the way we see it today. Statements from great investors like Warren Buffet claiming Bitcoin to be just a fad make us wonder if the technology that we all are so crazy about will have a future of its own. However, before we answer that question let us understand what is Blockchain.
What is Blockchain? How Blockchain works
Blockchain is a specific type of database that stores data in blocks which are then chained up together. The new data is entered into a fresh block. Once the block is filled with data it gets tied up to the previous block and this creates a chronological order for the data. Although different forms of information can be stored in blockchain it has gained attention mostly from the financial world. It has so far been used as the digital ledger for transactions.
In the case of cryptocurrencies, blockchain is used in a decentralized manner so that the control does not lie in the hands of a single individual or group but is rather collectively controlled by every user. Decentralized blockchains are immutable which means once the data entered cannot be reversed.
3 Things about Blockchain technology
|Blockchain was proposed in 1991|
|Data is Immutable|
|Blockchain network is P2P|
- Blockchain was first proposed in 1991– Scientists proposed blockchain way back in 1991 with the original motto to store digital data that cannot be changed or modified. Later, a group of scientists adopted blockchain technology to create a digital currency called Bitcoin.
- Data is immutable– Once the data is stored in blockchain it is impossible to change it. This is the reason behind the enhanced security of cryptocurrency. Each block in a blockchain is representative of the structural and functional unit. Apart from data the block also contains hashed value of that block as well as the hashed value of the previous block. These blocks are then chained together in a chronological order called a blockchain. The data stored in the blockchain system varies from application to application. In the case of cryptocurrencies, it stores the transaction details. Hash is like the fingerprint for the digital information stored. This technique of blockchain makes it highly secured.
- Blockchain network is P2P– The blockchain network is a peer-to-peer system with every user having a copy of the blockchain. Therefore, if anyone wishes to tamper with the information the entire chain needs to be modified. Therefore, it becomes intensely difficult to break the security. This is why blockchain is the future of modern data transfer.
3 Advantages of blockchain technology
|Data manipulation with Timestamp|
|Not controlled by a single entity|
Blockchain is an entirely decentralized system and therefore, there is no single unique database that stores information. There are many copies of the system that stores information. Therefore, a single structure cannot be targeted.
Data manipulation with Timestamp
Blockchain shows the history of data manipulation. In other databases, only the updated data is visible. However, blockchain data manipulations come with timestamps. Therefore, the history of updating is also visible in blockchain.
Not controlled by a single entity
Blockchain is not controlled by a single individual or group. Since copies of blockchain networks are available in every node, they can be updated everywhere and anywhere. This enhances the security of the information stored in a database like a blockchain.
Use cases of Blockchain technology
|Blockchain and cryptocurrency|
|Blockchain and Health Care|
|Blockchain and Gaming Industry|
|Blockchain and Digital Marketing|
Blockchain and cryptocurrency
Blockchain is the underlying technology of Bitcoin and other cryptocurrencies. It has made the transaction of assets super easy and secure. Cutting out the intermediaries in between through smart contracts has made the system quite robust and efficient.
Blockchain and Health Care
Blockchain is being used in the health care industry to store records and information of patients. It just does not enhance the safety of the information but the information also becomes immutable therefore, no record can be modified for malpractices.
Blockchain and Gaming Industry
Blockchain has indeed become a boon to various industries that lacked accountability, the gaming industry being one of them. The ability of blockchain to create a trustless environment that enables immutable transactions between strangers over the internet is being deployed in the gaming industry. Some of the problems that blockchain solves in the gaming industry today are verifiability and transparency, verifiable scarcity, digital asset exchange, collectible items, time and cost of in-game transactions as well as security.
The gaming industry is undergoing a revolution because of blockchain technology. The two industries combined will create an ecosystem that shall work seamlessly making blockchain technology invisible in the background.
Blockchain and Digital Marketing
Blockchain is a great opportunity for every digital marketer out there. Great consumer-market relations and a refined and secured way of data transfer have indeed made it a great platform for digital marketers. Blockchain assists marketing considerably. One can easily target their potential customers without wastage of money and other resources.
Latest Blockchain Technologies in Real-world
Research shows that tracking systems that are built using blockchain are safe, secured as well as cheap. It also ensures data integrity among various stakeholders. the decentralized blockchain public ledger system can allow better and multiple authentications of vaccine certificates. Thus, curbing the proliferation of fake ones seen in the continent.
A game built on blockchain technology has its native token to reward the players is making has already established its presence in the digital world. Players have their own NFTs (Non-fungible tokens) to trade, sell and exchange. The gaming industry is booming more than ever due to the advent of blockchain technology.
Summing it Up!
The several use-cases of blockchain technology and the recent advancement in different industries due to this technology is indeed proof of the fact that blockchain possesses the capabilities to become a mainstream technology shortly. It has emerged as a technology that possesses the power to actualize the valuable as well as the necessary changes. It has streamlined the processes, reduced unnecessary costs, and has created a secured environment for data.
Be it cryptocurrency or different DeFi and Dapp projects, the underlying technology is blockchain. Many decentralized applications are being developed for more secure and efficient forms of transfer of data and this certainly says that blockchain is here to stay.
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