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 :
- Blockchain stores transaction details like time, date and transaction amount of recent purchase from Flipkart – Walmart etc.
- Blockchain stores information about both parties in a transaction. Your transaction detail is recorded using a “unique digital signature”, like a username.
- 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 :
- Transaction must occur.
- 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.
- Transaction stored in blocks :
- As it gets green light after verification, your details like time, date and transaction amount is stored in the block.
- Hash assigned – verified Block :
- Once every detail is verified one by one, unique identifying code, hash is assigned to each different block.
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.
- 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.
- 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.
- Improved Accuracy : by removing Human Involvement
- Cost Reductions
- Secure, Private, Efficient
- Low transactions per second
- Use in illicit activities
- Susceptibility to get hacked