What is Blockchain technology ?

What is Blockchain technology ?

Blockchain technology was first incepted in year 2008 by a person name Satoshi Nakamoto, he successfully collaborated with scientist Hal Finney to do first bitcoin transaction (BTC) in the year 2009. At that the world was unaware of this unique innovation that would take the world with storm.

Blockchain technology is Distributed ledger technology (DLT), which makes the digital assets unalterable and yet transparent with usage of decentralized and cryptographic technology. In simple words Blockchain technology is somewhat related to Google document we create, it can be accessed and used by multiple users at same time, all the modifications and editing is transparent and are real time. Although Blockchain is a bit complicated version of it. Due to its evenly distributed mechanism, the technology is accurately transparent without any risk of malpractices and illegal usage.

How does the Blockchain technology works?

The technology of Blockchain works mainly on three different concepts namely

  • Blocks
  • Nodes
  • Miners

Blocks :- These are multiple blocks of a chain, it has three elements. First is Nonce, it is created with 32-bit whole number, it is created randomly after creation of the block. Then second is Hash, its 256-bit number connected to Nonce, it remains connected with Nonce until it is mined.

Nodes:- This is an important aspect of the technology, basically depending on concept of decentralization, no entity is authorized to own the ledger of Blockchain, instead they evenly distributes it through Nodes connected to the chain. These are electronic devices which copies the Blockchain. Every block has to be transparent enough to view, update it, every mining participant is issued unique Alphanumeric identification number to keep the transparency in check.

Miners:- These are the participants which creates new blocks on the chain through the process called mining. As every chain has unique Nonce and Hash, it is extremely difficult to mine the large chains. Miners are experts that uses sophisticated software to solve extremely complicated mathematical problems to create a Nonce for the Hash. It is estimated that they are four billion combinations to unlock the right one. Finding Golden Nonce to add up in the chain is highly complicated and humongous task, it requires huge amount of time, and best computing knowledge. When miner is successfully mines a chain, he or she is rewarded with financially.

How successful in Blockchain applications in businesses

As this technology works on algorithms of distribution of ledgers evenly, it can be useful in tracking or catching frauds and manipulations in the financial records of the businesses. In health sector, the data of patient can be transferred to health care provider with any hassle and secure. This technology also protects the intellectual individual properties like Music rights, and visual copyright infringements.

Future and feasibility aspect of Blockchain technology

Since inception of the technology in the year 2008, it has developed in many folds, a programmer in US ordered two pizzas for 10,000 bitcoin in 2010, those bitcoin are now worth 80 million dollars now. In 2013, the bitcoin industry surpassed 1 billion dollars mark, many prominent gaming companies started accepting bitcoin in transactions. Even PayPal started accepting bitcoin. In 2016 Japan government announced the legitimacy of the bitcoin. In coming decade bitcoin transactions will see huge demand and acceptance in the entire world.

 

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