What is Blockchain Technology ? How it works?
Blockchain: A Technology that Bitcoin Uses
While introducing Bitcoin to the digital market in 2008,there came a technology which introduced a digital ledger for storing the bitcoins and its transaction.
Which is named as Blockchain.
Bitcoin is the best known cryptocurrency which is mostly used for online trading process.Thus bitcoin implements blockchain technology for its high data storage.
This guide is gonna explore the following topics
What is blockchain
Benefits of blockchain
Why blockchain technology?
How blockchain works
What makes blockchain special?
Blockchain technology users in real world
Future of Blockchain technology
How bitdeal can support you to develop in Blockchain development?
What is Blockchain?
Blockchain is a public ledger or a distributed database of all bitcoin transactions. It is a open source technology and anyone can access the details at anytime. The unique feature of the blockchain technology is that, the digital transactions and information are immutable. As it is a distributed ledger, there will be no control or central authority of records stored.
Benefits of Blockchain:
it is open source.
Decentralization process makes more accessibility with less attack to data forge.
Easy data manipulation,(ie., storage and retrieve process of data).
Blockchain -Bitcoin :
Bitcoin or cryptocurrency is a digital currency used for online trading process. Anyone can mine his/her own bitcoin. But the bitcoin can be used for trading or exchange process only after getting a legal authority and registration from Blockchain.
Thus , Blockchain is a collection of all bitcoin records as a ledger or database. In this technology, the records or transactions of bitcoins are stored into different blocks that are interconnected by chains that are encrypted. As it is encrypted and decentralized, there is no chance of hacking th e records, as whole network is connected.
WHY BLOCKCHAIN TECHNOLOGY?
Source : 101Blockchains.com
In blockchain, its not just 10 or 20 nodes connected, but its accessed by thousands of nodes around the world at the. The main feature of blockchain technology is that it can be accessed by thousands of people at the same time.
Blockchain is decentralized system. So it is impossible for hackers to hack because if he hacks one block, the other blocks will get alert. To avoid this, he has to hack all the blocks that are connected with the block, which is impossible. Hence it is safe.
The most interesting feature of blockchain technology is, it is immutable. The connected nodes can see updates in block, but cannot be alter or change any information unless they get approval from the other connected nodes.
HOW A BLOCKCHAIN WORKS?
When we add a information, it will be converted as encrypted code and will be stored in to a block and then the data will broadcasted to peer-to-peer consisting nodes. The nodes validate the information using algorithms. Once verified, the block will be added to the chain.
It is a distributed ledger where the digital information is spread across several nodes at a same time. There is no central authority in this technology.
Use Of Blockchain
In Early Stage:
In the beginning, blockchain is used as a bitcoin transaction data ledger. As this blockchain technology is introduced for the bitcoins. Thus, blockchain was only used as decentralized bitcoin ledger alone.
In recent Days:
As days passes, people looks upon the Blockchain technologies development and its benefits. Huge data storage in some industries was a demands and easy storage of data in plenty on Blockchain is become solution. This paid a way for the use of blockchain technologies in various industrial purposes like Healthcare management, Organizations,etc.
Blockchain is actually a public ledger technology at the origin. But,in recent days based on the usage of Blockchain technology, it is also customized as a private ledger technology.
For example: Use of blockchain technology by a particular organization for its data storage is customized as only authorized person can access the records stored in it. This way of use of blockchain technology is named as private blockchain.
SOME BLOCKCHAIN TECHNOLOGY USERS IN REAL WORLD:
The Russian rail operator Novotrans stores inventory data on a blockchain pertaining to repair requests and rolling stocks.
To save cost and increase transparency, insurer AIG (American International Group increases) uses smart contract-based blockchain.
The US department of Homeland security follows this blockchain to store data captured with the security camera.
Google builds its own blockchain, which will be integrated into its cloud based services, enabling businesses to store data on it.
The Future Of Blockchain Technology
Our World is changing faster than ever. It was nearly before 20 years, mobile phone was introduced and before 10 years, mobile phones turned to smart phones. Similarly, internet is changing smarter, faster than ever. Today, blockchain is the technology that is spearheading the momentum of democracy and decentralization in online world.
Web 3.0 is the future of internet. The main difference between web 1.0, web 2.0 and web 3.0 is, web 1.0 and 2.0 are centralized whereas the future web 3.0 is going to be decentralized and secure. Web 3.0 blockchain stack is designed to be decentralized and the information will not be owned by any entity. Blockchain is being familiar among more people and is the latest trend today.
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