The term “blockchain” must have appeared for people who regularly follow banking, cryptocurrency, or who have invested in something. A record-breaking and efficient technology, Blockchain essentially eradicates the hitches in money transactions.
This modern technology effectively reduces issues like money laundering, tax evasion and possible terrorist financing. This paper elaborates on the phenomenon focusing on blockchain from that of the past and the changes made in the present.
Introduction to Blockchain
Many of us would have understood by now that the real hitches in a centralised bank transaction on a normal digital platform, which is susceptible to fail, can be due to one or more reasons, such as online technical glitch, hacking of user account, crossing a day’s transaction limit and higher transaction cost charged by the banks.
With people getting busier with each changing day, the need for speedier options is getting popular. Block Chain makes this possible with its technology to make easier financial transaction without online wallet, banks, or third-party applications.
A ground-breaking digital technology, it addresses the inadequacies in the traditionalist fiat transactions. It does so in the most transparent manner with security as its priority that ensures leaving no stone unturned. It is inevitably advantageous for the stakeholders under the fold of its robust peer to peer network structure.
Definition of Blockchain:
At the base level, a Blockchain is essentially a decentralised public distribution ledger that can record certain transactions through computers connected to networks. The users access and verify the networks which makes the transactions less prone to theft or cyberattacks.
On the year 2008, Satoshi Nakamoto conceptualised the first Blockchain and made its original design. The design, in the following year, was used as the core layout for cryptocurrency bitcoin which served as the public ledger for all transactions on its closed network.
A centralized authority has no control over the information on Blockchain. Instead, the authority goes to modern financial institutions. The participants of the network have a hold on the data and can approve any transaction that occurs over a Blockchain network with a democratic authority. Therefore, a typical Blockchain network is a public Blockchain.
As a public network, anyone can have access to the data within the Blockchain given that he is a registered participant on the network chain. A copy of the ledger is shared with all of the participants.
This technology is completely fool proof. If data on one of the computers gets corrupted, an alert goes to the other participants. Upon receiving the alert, any participant is able to rectify it as soon as possible. This assures complete transparency on a Blockchain Network.
Blockchain primarily uses hash encryption for the security of its data. The encryption relies on the SHA256 algorithm for an extra layer of security. There are four fields of the block in a Blockchain that are identified as:
- A hash used previously can store the hash of the previous block in the Blockchain
- Transaction details that contain information regarding several transactions
- A random value, known as the Nonce Value, has the principal purpose to act as a diverge for the hash value
- Hash address that contains the unique identification of the block; it is a hex value of 64 characters, both letters, and numbers, obtained by using the SHA-256 algorithm
The first three values (previous hash, transaction details, and nonce) are passed through a hashing function that produces the fourth value, that is the hash address of that particular block.
In this Technology, ‘mining’ is the process of adding transactional details to the public ledger. Mining has the function of generating the hash of a block transaction. This makes the transaction difficult to forge, thereby reducing possibility of theft.
A hash value holds the crux of the Blockchain. The right hash value is sought after by millions of people to meet a pre-determined condition using the computational algorithms. A transaction is deemed complete when a pre-determined condition is met.
Impact of this technology on the society has been a powerful one ever since it completed its successful testing in the public domain.
Due to Blockchain, the presence of cryptocurrencies exists which assists people in financial services like digital wallets. It has been facilitating microloans and micropayments to people in less than ideal economic circumstances, thereby introducing a new life in the world economy.
The eminent election fraud at the ballot box is being brought to public’s eye by an organisation named Follow My Votes. The organisation has been using the this Technology for its campaigns.
The advent of Internet on Things (IoT) in conjunction with this technology has revolutionised the business processes in public services such as rubbish collection, transportation, and traffic management. The technology helps in developing smart contracts while allowing smart objects to perform the listed tasks without human involvement.
The Healthcare Industry has been able to create a secure platform through Blockchain technology. They use it to store sensitive patient information in a centralised database. It also allows to share the information required with only authorised people.
Why Go For A Certified Blockchain Course?
With its numerous advantages both in the industrial as well as the commercial sectors, this technology is a necessity to be taught to students in universities. It has the potential to make an impactful dent in the private consumer world.