Blockchain – Everything you need to know about this!

What is Blockchain ?

A simply complex technology ! At its ground level, you can synonym it as “Chain of Blocks”, just literally, not in traditional sense. Here, block refers ‘digital transformation’ + chain refers ‘public database’.

Basically it has three parts :

  1. Blockchain stores transaction details like time, date and transaction amount of recent purchase from Flipkart – Walmart etc.
  2. Blockchain stores information about both parties in a transaction. Your transaction detail is recorded using a “unique digital signature”, like a username.
  3. Concept of “Hash”:- Information stored in blocks distinguishes them from other blocks using this feature if Blockchain. Each block stores a unique code “hash”

Working Process :

Blockchain consists of multiple blocks, Obviously! However, four events must happen :

  1. Transaction must occur.
  2. Transaction must be verified :
    • Your transaction details such as Card Number, Expiry Date, CVV, Account Holder name, etc is verified over network of computers.
    • Moreover, OTP (One Time Password) is must verified.
  3. Transaction stored in blocks :
    • As it gets green light after verification, your details like time, date and transaction amount is stored in the block.
  4. Hash assigned – verified Block :
    • Once every detail is verified one by one, unique identifying code, hash is assigned to each different block.

Practical Applications

1. Financial uses in BANKS
  • Due to integration of Blockchain into banks, consumers can see their transactions in their accounts being processed within 10 minutes.
  • It also helps banks to exchange funds between financial institutions more quickly & securely.
  • In stock trading business, volatility in Stock Market ensured by Blockchain integration in brokerage & bank system.
2. Cryptocurrency
  • It proves to be a bedrock for cryptocurrencies like Bitcoin.
  • Blockchain allows Bitcoin & other cryptocurrencies to operate without need of a regulatory central authority unlike currencies like USD, EUR, INR, etc.
3. Healthcare
  • Patient’s medical records are ensured full privacy as well as security.
  • Medical records written in Blockchain provides proof and confidence that the records cannot be changed to the patients.
4. Property Records
  • The process of indexing property details to Local Record’s Office is not just costly and time-consuming — as well as riddled with human error.
  • Blockchain eliminated the need of scanning documents and tracking physical files in that office.
  • If property ownership is stored & verified on blockchain, owners can trust that their deed documents are accurate and permanent.
5. Voting / Elections
  • As it was tested in November 2018 midterm elections in West Virginia.
  • Blockchain carries the potential to eliminate elections frauds and touts and boost voter turnout.
  • It reduces the need of personnel to conduct an election and provide officials with instant results.

Advantages

  • Improved Accuracy : by removing Human Involvement
  • Cost Reductions
  • Decentralization
  • Secure, Private, Efficient
  • Transparency

Disadvantages

  • Low transactions per second
  • Use in illicit activities
  • Susceptibility to get hacked

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