Insight into Blockchain Technology and its applications in diverse industries

July 17, 2019

According to Wikipedia, a blockchain might appear to be similar to the things you know from a cruising altitude.

Blockchain technology is not a new term; people might have heard it in reference to cryptocurrencies such as Bitcoin. For the naïve individuals, the concept of blockchain might seem non-realistic. However, it is a significant element when it comes to cryptocurrencies. Digital currencies would not have any existence without it.

So, you might be thinking how does it work?

A few core features of blockchain need to be recalled before digging into its functionality.

·        Blockchain Makes use of a distributed system for the verification of every single transaction.

·        It Maintains details about the data exchanges. In the world of cryptocurrencies,these records or details are known as “ledger” and the exchange of data taking place is termed as a transaction.

·        Upon the verification and signature, a fresh transaction is appended to blockchain and there is no alteration for that.

For understanding the concept of blockchain, one needs to know about the “keys”. An individual is provided with a unique identity with the help of cryptographic keys. They are public or private keys and when combined, they provide the user with a digital signature.The private key you are having allows you to authorize and digitally sign various actions, while your public key is your key for identification by the other individuals.

These keys allow you to authorize withdrawals, transfers and perform other functions in the world of cryptocurrency.

Each time there is occurrence of a transaction, it is signed by the authorized person. The transaction comprises of a public key (recipient address) and with the help of digital signature, it will be signed utilizing the private as well as public key of the sender. The Transaction is then appended to the blockchain ledger, also including a distinctive ID number and a timestamp. Upon the occurrence of this transaction,it is transmitted to a nodes network because of which the other digital entities are able to know the transaction occurrence.

The blockchain technology presents a myriad of benefits; including-

  • There is elimination of the intermediary costs and the overheads because of the direct nature of transactions.
  • It is highly secure since there are decentralized Blockchain and cryptographic protocols involved.
  • Because of the transactions being real-time,the time effectiveness is enhanced.
  • The processes become more transparent due to suitable tracking and record creation.
  • Lesser risk concerned with tampering, frauds and cybercrimes.

According to Wikipedia, a blockchain might appear to be similar to the things you know from a cruising altitude.

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Written by Zamask

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