In recent years, there is a lot of buzz on Blockchain. Many have described this as a most disruptive technology of the decade. Especially, the financial markets could be the most affected ones.
The technology is being adapted into many verticals like Healthcare, Medicines, Insurance, Smart Properties, Automobiles, and even Governments.
In simple words, Blockchain can be defined as a chain of the block that contains information. The technique is intended to timestamp digital documents so that it's not possible to backdate them or temper them.
The blockchain is used for the secure transfer of items like money, property, contracts, etc. without requiring a third-party intermediary like bank or government. Once a data is recorded inside a blockchain, it is very difficult to change it.
The blockchain is a software protocol (like SMTP is for email). However, Blockchains could not be run without the Internet. It is also called meta-technology as it affects other technologies. It is comprised of several pieces: a database, software application, some connected computers, etc.
Sometimes the term used for Bitcoin Blockchain or The Ethereum Blockchain and sometimes it's other virtual currencies or digital tokens. However, most of them are talking about the distributed ledgers.
A Blockchain is a chain of blocks which contain information. The data which is stored inside a block depends on the type of blockchain.
For Example, A Bitcoin Block contains information about the Sender, Receiver, number of bitcoins to be transferred.
The first block in the chain is called the Genesis block. Each new block in the chain is linked to the previous block.
How Blockchain Transaction Works?
Step 1) Some person requests a transaction. The transaction could be involved cryptocurrency, contracts, records or other information.
Step 2) The requested transaction is broadcasted to a P2P network with the help of nodes.
Step 3) The network of nodes validates the transaction and the user's status with the help of known algorithms.
Step 4) Once the transaction is complete the new block is then added to the existing blockchain. In such a way that is permanent and unalterable.
Blockchain is a chain of blocks that contain information
The blockchain is not Bitcoin, but it is the technology behind Bitcoin
Every block contains hash.
Each block has a hash of the previous block
Blockchain require Proof of Work before a new block is added
The blockchain database is disturbed amongst multiple peers and is not centralized.
Block chain technology is Resilience, Decentralize, Time reducing, reliable and its offers unalterable transitions
Three versions of Blockchain are Blockchain 1.0: Currency, Blockchain 2.0: Smart Contracts and Blockchain 3.0: DApps
The blockchain is Available in three different variants 1) Public 2) Private 3) Consortium
Higher cost, slower transactions, small ledger, the risk of error are some disadvantage of using this technology
Dubai- The Smart City, Incent Customer retention, and Blockchain for Humanitarian Aid are the real-life use cases of Blockchain
Bitcoin uses blockchain technology which is not governed by any central authority or banks