High Score Labs News • Dec 7, 2021
What is Blockchain Technology?
Blockchain which was original purpose of technology which powers Bitcoin – “a decentralized, distributed ledger of transactions.”. Now, this phrase was not sufficient enough to explain about Blockchain.
Blockchain is a shared database referred as digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT). Blockchain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash.
In broader business terms, Blockchain is a shared, decentralized, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.
How Blockchain works?
Transaction: Each transaction occurs, it is recorded as a “Block”. These transactions represent the movement of tangible and intangible assets. The information of the assets can be structured using many fields and its values.
Chain: These blocks form a chain of data showing movement of assets and ownership changes. They are securely linked together to prevent any block from validating and editing.
Security: This chain with every additional block strengthens the verification of previous blocks. The transactions are immutable which strengthens the secu
How does a transaction get into the blockchain?
Why Blockchain will change the world?
There are many opportunities. There are many pressing areas differing from industry to industry but the major problems are duplication of records, third-party intervention in data supply chain, vulnerable medium of data transfers, very limited transparency and unorganized validation mechanism. These leads to slow business, deal with authoritative ecosystems maintained by some individual or an organization. Blockchain Technology basically helps in Trade. Because of this technology, you can trade with anyone around the globe, without knowing about him personally and without any intermediate party. It will change the way we transact or trade.
- Ownership: It is not owned by anyone, every participant on the chain is having all the transactional information controlled through hash algorithm.
- Trust: Records will be shared only with network members to whom you have specifically granted access which adds more trust and reliability of transactions.
- Security: Transactions needed consent on data security from all the network members. These validated transactions immutable and permanent in nature.
- Transparency and efficiency: With the distributed ledger shared among all the members. Due to accuracy of data, there is less wastage of time and it runs automatically. Smart algorithm and rules make the smart contracts more efficient.
Use cases for blockchain:
- Healthcare data management practices using consortium blockchain shared between hospitals or COVID-19 information exchange with fast and reliable transactional information.
- Crime data syncing between Federal bodies to avoid drug trafficking and border trace passing.
There are numerous applications of blockchain technology and current state of blockchain needs many such use cases which can be implemented in real time. It can be evolved as tool to transact or trade more secure, reliable and efficient way. Like internet changed the way we communicate in past two decade this technology will change the way we do transactions.