What the heck is Blockchain all about?

What the heck is Blockchain all about?
Blockchain is a public record database of all the transactions done by the users online using Bitcoin as the mode of payment. It is a public ledger of all the transaction executed on the internet. Each payment that is done is recorded in a form of block which is added to the database of the blockchain. The blockchain has the complete information starting from the address of the user to the balance history and there are millions and millions of blocks in a blockchain.
Blockchain is actually a proof against all the transactions and credentials carried out online. It is a technological innovation which uses Bitcoin or similar as it’s unit of currency. This technology have been conceived in 2009 where it actually serves as a public ledger on internet as it can be accessed by everyone.
Blockchains uses cryptography and digital signatures to carry out transactions which prove the authenticity of identity and access the users right to use the digital currency.
Blockchains are created using blocks and Blocks are actually a virtual bank statements of the transactions.These blockchains are the full history of details of credentials done on the network. Every person who creates a block and pays fees for transaction is known as Miner and this process in known as Mining.
Miners can not only carry transactions to compete for creating more blocks but they can also exchange bitcoins for currencies, products and services.
A blockchain comprises of blocks that hold batches of blocks with genuine transactions. Each block is linked to the prior block with a hash. These linked blocks form a chain in a linear fashion and it is based on specific algorithm for different version of history.
A blockchain actually consists of two kinds of records which is transaction and blocks. Blockchain is a person to person technology that protects the integrity of the virtual products or currency. It allows one to create safe money online and give us an honor to protect any piece of digital information from others.
A blockchain works on public and private keys. A public key is a user’s address on blockchain and bitcoins spent by that users are recorded under that address. A private key is actually a secret code used to access the bitcoins using it as a password. The data stored in blockchain is incorruptible.
A blockchain provides the secure internet transaction and turned it possible for two strangers to carry out digital property exchange without any prior relationship. A blockchain method had simplified and made it easy for computers to carry out business activities effortlessly with security and freedom.
A blockchain technology makes it decentralized public ledger which is not controlled by anyone and it can be managed via community of users online. Blockchain technology have threatened the payment processors like banks, western unions and money exchange offices the most as with time they will give them so much competition that their existence may be put to question in years to come.
A blockchain technology have simplified the transactions online with a nominal fee compared to the fees charged by payment processors as they charge up to 5% whereas these charge only 2% making it a best option for the users world-wide.
A blockchain technology have made is easier without a third party involvement as transactions are processed instantly irrespective of where you are and what time it is. A block chain is even challenging the credit card companies as it’s safer and easier to store your information on a computer or phone rather than keeping it in your pocket. The transactions carried out through credit card takes time to process and clear whereas there is no such issue in using Bitcoins.
A blockchain implementation have given rise to many wallet applications like paypal, groupon etc who had developed a mobile payment strategy and increased the use of digital currency to a much higher degree.
The fact that blockchain technology works on an imaginary currency like Bitcoin and yet it is so widely used makes it a huge breakthrough in our times. Things that seemed impossible few years back are now easily done because of this virtual transactions done on the internet.
A blockchain is made up of bitcoin nodes all around the world which send information to each other until the whole world know about the transaction carried out within seconds. The block size is limited causing the decentralization of blockchain. Blockchain is created by blocks and blocks are added when Bitcoins are used to carry out a transaction and Bitcoin can only be used with the consent of all the users thus making Blockchain a democratic technology. A limited number of block sizes helps in keeping it decentralized and that is better in every way.
The Blockchain technology is not only limited to online transactions but the general idea of this technology can be applied to the supply chain of retail, agriculture and pharmaceuticals. The decentralized database would lead to reduce in fraud and theft enabling new and improved financial services.
A blockchain technology should be further studied as it only depends on a digital record and efforts should be made to match the digital currency with the physical assets in the real world.
For the transactions to proceed one needs to spend a particular amount but blockchain had made it possible to invest not only once but twice without even owning a penny in your account which is a boon in everyway. Many people can start a business without a minimum capital and flourish a lot.

Blockchain technology is still at it’s initial steps and need to achieve much more as it’s grows and expands. There are wide range of possibilities and obstacles in it’s paths to switch from digital transactions to commercial transaction in reality. And as with every technology the boon is greater but the impacts and disruption 
also goes hand in hand which need to be studied before implemented.
Other blogs by the author
55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 03 02 01 

Comments

Jayden Rich said…
Very good post and I like your points. However I do think that lists still have some merit, but the poster should try to make the list original and explain every point on the list in detail.

Buy Gold Coins In San Francisco

Popular posts from this blog

Internet of Things - MindMap

Challenges of a CIO/CTO

Mobile App Security: Know the rules now!