Since the inception of Blockchain technology in 2008, people have been working on it to improve and utilize it in their projects to get the best outcomes. In this series of blogs, our team is trying to explain that what is blockchain, why should you use blockchain and which industries would get a drastic change by implementing blockchain in it!
What is Blockchain?
Blockchain Technology is a growing list of blocks, connected with cryptography. For each and every transaction, a hash from previous blocks along with the timestamp is added.
In simple words, Blockchain is a tamper-proof virtual ledger to store the data. People still have a perception that Blockchain is a cryptocurrency; but no! Blockchain is the mechanism that drives the cryptocurrency platforms. Being a digital ledger technology, it could be a private, permissioned or public ledger as per user’s needs. Blockchain maintains the data in the distributed systems while making the processes irreversible and transparent for its users.
Blockchain can store any data or values can be stored in the blocks and they are chronologically interconnected with immutable chains. For every change or update created by user adds timestamps and creates a new block along with this new information of change in the system. This chain keeps growing with respect to data and updates added in it. Blockchain also comes with various distributed ledgers like Hyperledger, Corda, Ethereum, Ripple and more.
With Blockchain, we can develop smart contracts, cryptocurrencies, supply chains, games, social media, marketing platforms and what not! However, Blockchain is not the base technology which would create an entire platform, though it would be merged along in the development to make the platform more secure and transparent.
Read more: Public vs Private Blockchain
Well, there are various technical ways to improve traditional database systems. Even Blockchain can be implemented in various ways to make the traditional database secured and distributed.
We know that billions of IoT devices and sensors are coming to our tech ecosystem every year and millions of cyber-attacks are launched to reveal our personal data. Blockchain can act as a shield against cyber attackers and bullies.
Current systems have issues with transparency and trust within the system stakeholders. With properly implemented Blockchain-based smart contract can help us fill the gaps. We have a blog series to learn where Blockchain can make a difference.
Blockchain brings trust in the system.
By implementing Blockchain in any system would help us save and synchronize data with thousands of devices at the same time while encrypting them. Which not only keeps the system transparent but it also helps everyone take part in the transaction of the data. Ultimately, it gives every stakeholder power to analyze the Blockchain.
This also means that all the historical data of every activity and updates made by the user would get stores as blocks and stakeholders in the system would be able to analyse the transactions when needed. This makes the system open to all the participants for auditing.
Blockchain is a decentralized system. That means an outsider or attacker would not be able to make a penetration attack via a single touchpoint of the system. Unlike the centralized system, the attacker would need to gain access to more than half of the computing power in the system, which is next to impossible.
As we just mentioned, Blockchain can fundamentally disrupt the existing technology systems and make things more efficient, transparent and secured. Though, is there any real usage of Blockchain technology in the real world?
Here are some of the industries where Blockchain can be used. You can click on individual industry names to visit detailed insights.
Any good technology is not good until it creates a positive impact on our systems. From simple web development languages to database management frameworks, every tech has its own benefits. From Blockchain, below are some of the simple yet significant benefits blockchain has on offer.
- Cutting the middle-men: Blockchain-based smart contracts can act as a gatekeeper and can manage to fill the gap between the user ad service provider directly. Where in every industry, a middleman eats up a lot of commission and charges for doing their duty, Blockchain can basically automate the entire process and can seamlessly integrate the flow of payments, efficient service delivery and tracking of fraud.
- Multipartner systems: organizations, where more than one users are associated with the decision-making process and are responsible for multiple changes and accounts of the system, Blockchain can help to build a decentralized application with transparency and accountability for each user of the system.
- Record keeping in a complex system: being a digital ledger, Blockchain can help companies maintain their data and historical changes in the system. For transport and fintech, data and changes are everything.
- Smart contract: in any institution, two or more participating parties agree to get something done. Now, many times, we have seen that frauds take place in the system and the service provider ends up not providing the services as demanded or the buyer does not clear the payments. Smart contracts can become a bridge here and can act as a fraud preventive mechanism.
Do follow Adrixus on Medium to know more about Blockchain, technologies, startup culture, marketing and much more learning.