After the world got well acquainted with ‘Internet of Information’ and ‘Internet of Things’, ‘Internet of Transactions’ was introduced, known to us as Blockchain.
Blockchain, the industry that evolved with the introduction of Bitcoin, has developed into today’s one of the most ground-breaking technologies that hold the potential to change the entire dynamics of every industry in the world. To put it simply, Bitcoin is an essential peer to peer version electronic cash, but there are more sectors where this technology is expanding itself.
But what actually is Blockchain?
A blockchain is a distributed and secure database, which maintains a growing list of records, called blocks, stored on a decentralised platform. Each block is immutable and contains a timestamp and the link to the previous block. Each user can only edit the section of blockchain that he owns. This database is secured by cryptography, and a transaction can be initiated only with the private key of the sender and public key of the receiver.
Basically, a lot of complicated terms, when put together, make this technology.
To break the complexity of this, let’s first understand how cryptocurrency works.
Here’s a quick view on how any cryptocurrency works:
Let’s assume that A has to send some amount of this digital currency to B. A initiates a transaction which is sent out to a set of parties for validation. Once these parties validate the transaction, the said amount is sent to B, and a block is now added to the blockchain, with the time stamp of the transaction and this block cannot be changed, which offers the simple implication that no party can deny this transaction. Which makes this technology a platform safer than any potential third party.
The reason that the world is eager to see more of this technology is: It offers the fascinating possibility of entirely eliminating the involvement of any ‘middlemen’ from all sort of transactions and contracts. The system of involvement of third parties to ‘seal the deal” has been prevalent since forever. This being the 21st century, the involvement of these parties had to be challenged; and blockchain did it!
While blockchain is all set to revolutionise the industry of finance entirely, it is looking forward to expanding to every industry known to mankind- in healthcare to store patient’s records, a census tool for government, identity verification- you name it and blockchain will find an implementation there.
Imagine how much manpower can be saved by this great invention, and that is the sole idea behind technology anyway!
To read more about blockchain, click here.