A blog post explains Blockchain technology and the concept behind it.
Are you a tech enthusiast?
Have you heard of the latest technologies like Web 3.0, Metaverse, NFTs, cryptocurrencies like bitcoin, and others?
If yes, you must be curious about how these technologies work and the key technologies that support them.
“Blockchain technology” is one of the core technology behind all the above technologies.
If you Want to dig deeper into Blockchain Technologies then this guide will help you to understand:
- What is blockchain technology?
- How does blockchain technology work?
- What are the benefits of Blockchain technology?
- What are the Uses of Blockchain Technology?
So let’s get started.
What is Blockchain Technology?
It was first outlined by the two mathematicians Stuart Haber and W. Scott in 1991. The main objective behind this is to develop a system where document timestamps could not be tampered with.
A blockchain is a peer-to-peer decentralised distributed ledger technology(DLT), this technology makes the account of any digital assets unchangeable and transparent via the use of decentralised and cryptographic hashing.
This technology can execute user transactions without entangling any third-party intermediaries.
How Does Blockchain Technology Work?
As the name suggests, Blockchain consists of multiple blocks linked together to form a chain. Blockchain stores the data in such a way if the number of transactions increases so does the blockchain. each block has three basic elements, these are-
- Data
Transaction information stored in Block
- Nonce
A nonce is a randomly generated whole number when a block is created. Nonce then generates a block header hash.
- Hash
It is a digital fingerprint or unique identifier number permanently attached to the nonce.
Each block includes its unique hash, the previous block’s hash and timestamped data from recent transactions.
The previous block hash links the blocks in the form of a chain. It prevents any block from being changed or an unknown block from being inserted between two existing blocks.
What are the benefits of Blockchain Technology?
We have learned a lot about Blockchain technology. Now let’s dig into what its benefits are.
Immutability
In Blockchain technology, there is no possibility of changing and altering the data. Each transaction is recorded by the majority of the network’s nodes.
Data inside the blocks are permanent and can not be deleted or manipulated by anyone.
Transparency
Blockchain is a decentralised system that delivers complete transparency. Now many organisations and businesses are using the decentralised network in their system.
They can enhance the transparency of the entire system and don’t have to rely on the centralised authority. The lack of intermediaries and third-party also reduces costs.
High Availability
Blockchain is a decentralized P2P network that has computers running. Even if one computer or server goes down, others are still working.
It offers time efficiency for business as the blockchain is open 24x7x365, unlike other businesses, banks and intermediaries.
High Security and Accuracy
Blockchain offers high security as all the transactions are in encrypted form due to the cryptography Algorithm.
If the data on a block is varied subsequently hash code of that block also changes. But the following block’s hash code would not change.
This dissimilarity makes it extremely hard for data on the blockchain to change without anyone noticing.
Time-Saving
Because it doesn’t need verification from the central authority, transaction settlement is faster than days to minutes.
Cost Saving
Because parties have access to a shared ledger, this technology eliminates duplication of efforts.
Anonymous
The identity of participants using blockchain technology is either maintained anonymously or used as a pseudonym for themselves.
What are the Uses of Blockchain Technology?
Blockchain is a type of shared ledger, with the primary objective of recording and storing all the transactions in decentralised and cryptography formats. Besides being used in cryptocurrencies like Bitcoin, blockchain technology is also used in many places.
- Used in money transfer and payment procedures.
- Real-time monitoring of the supply chain.
- Control over users’ Digital IDs and their Data.
- Working as a regulator for IoT networks helps to identify, monitor, and trustworthy devices connected to wireless networks.
- Create a decentralised Database to ensure copyright protection for artists, developers or any other streams.
- Healthcare providers also use this technology to record critical cases, research data and crucial information for clinical trials.
- Act as a mediator to securely control and share information among industries.
Summary
Blockchain technologies are growing at an exceptional rate. With numerous practical and valuable applications, technology is being explored on new levels every day.
It becomes trendy not only because of cryptocurrency and bitcoins but also because it makes business operations more efficient, accurate, less costly, and secure with fewer intermediaries.
Creating security from start to essential can ensure profitable and secured blockchain applications.
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