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