We are in the generation of cryptocurrency. You might have heard news about people getting rich by investing in Bitcoins and Etherum but to understand about it you need to understand the technology behind it – Blockchain.

The blockchain is a distributed ledger technology that can be programmed to record and track anything of value. Just like a database that is decentralized and distributed among a whole network of computers. Simply it can be termed as a peer- to -peer technology that continuously updates a record of transactions which spread out across a vast network of computers without the need of intermediaries like banks, third parties, governments or anything.

It stores information in batches called as blocks which are connected in a continuous chronological order like a chain. Suppose if you wanted to change any information in a block, you couldn’t directly change that block as the change would be recorded in a new block and everyone will know that change. Making, it the most transparent technology.

Here’s a detailed explanation of how blockchain works

Blockchain has the potential to transform the way the world functions as it removes the centralized third parties and middle-men that handle transactions in various industries. Example, in the entertainment Industry people, could directly pay to writers and artists without the need of a record label or any third party firm handling them. As of now, services like Spotify, iTunes, and Amazon take 95% of artist revenue. And International Payment by individuals and companies become cheap, fast, and secure.

The blockchain can be used in various sectors and its application is not limited to cryptocurrency like bitcoin.

Here’s everything you should know about Blockchains:

  • The person behind this technology is Satoshi Nakamoto, but his real identity is secrecy.
  • A block in a blockchain consists of various types of information namely Index, Time Value, Hash Value, Previous Hash Value, Data to be stored in the block, Nonce
  • Blockchain uses hash-based cryptology to assure security. A hash in a Blockchain is an encrypted version of a string or sequence of characters.
  • It is highly transparent because anyone with an access can view the entire chain.
  • A blockchain user will have two keys a private and a public key where a public key is for sending material to a specific individual on the blockchain and private key is to authenticate transactions from the individual holder.
  • The blockchain is now bringing transparency to the food industry too with distributed ledgers that verify everywhere a piece of produce that has traveled along its journey to the market.
  • Today’s tech giants such as IBM and Microsoft are investing in Blockchain technology and IBM dedicated $200 million right now and 1,000 employees to Blockchain-powered projects.
  • Today only 0.5% of the world’s population is using Blockchain. But still by 2024 global Blockchain market is expected to be worth $20 billion.
  • The first Blockchain was the database on which every Bitcoin transaction was stored and now it holds over 160 gigabytes worth of data.
  • Based on Blockchain technology a city named Tsukuba in Japan has recently tested a voting system.
  • According to a study conducted by a corporate giant Accenture, world banking sector can save up to $20 billion by 2022 by implementing Blockchain.

 

A future with blockchain technology everywhere awaits for us

A future Awaits for us where we can order anything like furniture to our new home by releasing payment via blockchain once the delivery of the furniture is confirmed via the internet of things (IoT) sensors located within the product itself to verify its physical location.