What is Blockchain Technology Briefly Explain how it works and How it is Popular?

What is Blockchain Technology Briefly Explain By THE LIVE LEARNS

A blockchain is a series of blocks that contains information. It was initially designed to timestamp digital documents so that it is not possible to backdate, alter, or tamper with them. Blockchain went mostly unused until it was adopted by the founder of Bitcoin in 2009. A blockchain is a distributed ledger that is completely open to anyone. It can be used by anyone. Blockchain has an interesting property being that once some data has been entered inside the block, it becomes very difficult to change it. Blockchain is a record-keeping technology used as a specific database that stores information or data in blocks that make it impossible to change. The database is a collection of information stored electronically. As new data enters a fresh block it is filled with the new data the block is then chained onto the previous block, which makes the data chained together in chronological order.

What is Blockchain ?

The term “blockchain” is frequently used in banking, investing, or cryptocurrency over so many years. It is we can say the record keeping technology behind the Bitcoin network. The concept of blockchain seems to be quite critical, but simply blockchain is a specific type of database, that Stores data in blocks and then chained them together. Blockchain sometimes referred to as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralisation and cryptographic hashing. Blockchain is a promising and revolutionary technology because it helps to reduce risk, stamps out fraud in a scalable way for myriad uses.

Blockchain is awesome technology. “It’s a mathematical framework that is free of politics and human error”, 

What is Blockchain Technology?

Distributed ledger technology, Immutable records, Smart contracts

Blockchain technology is a structure that can stores the transactional records, also known as the block, of the public in several databases for the vey safe system that you have to know and that is known as the “chain,” in a network connected through peer-to-peer nodes like a chain. Like file Typically, this storage is referred to as a ‘digital ledger.’

Every transaction in this ledger is authorized by the digital signature of the premised owner, which authenticates the transaction and safeguards it from tampering. Hence, the information the digital ledger contains is highly securefor value. In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which, the transactional records are stored based on actual purchases by the network. The fascinating angle is that anybody can see the data, but they can’t corrupt it.

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Why is Blockchain Popular?

Suppose you are transferring money to your family or friends from your bank account. You would log in to online banking and transfer the amount to the other person using their account number. When the transaction is done, your bank updates the transaction records. It seems simple enough, right? There is a potential issue which most of us neglect.

These types of transactions can be tampered with very quickly. People who are familiar with this truth are often wary of using these types of transactions, hence the evolution of third-party payment applications in recent years.  But this vulnerability is essentially why Blockchain technology was created.

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How does blockchain work?

  1. As each transaction occurs, it is recorded as a “block” of data
  2. Transactions are blocked together in an irreversible chain: a blockchain
  3. Each block is connected to the ones before and after it

Types of Blockchain Networks

There are several ways to build a blockchain networks now a days.

Public blockchain networks

Bitcoin is a such kind of public blockchain is one that anyone can join and participate in it and its, might be include substantial computational power required, little or no privacy for transactions, and weak security for some reason. These are important considerations for enterprise use cases of blockchain.

Private blockchain networks

Similar to a public blockchain network, a private blockchain network, is a decentralized peer-to-peer network. However, one organization governs the networks, who is allowed to participate, execute a consensus protocol and maintain the shared ledger controlling the data. Depending on the use case, this can significantly boost trust and confidence between participants. A corporate firewall and even be hosted on premises private blockchain can be run behind.

Permissioned blockchain networks

Generally set up a permissioned blockchain network will Businesses who set up a private blockchain. It is very important to note that public blockchain networks can also be a permissioned. Every Participants need to obtain an invitation or permission to join. This places restrictions on who is allowed to participate in the network and in certain transactions.

Consortium blockchains

The responsibilities of maintaining a blockchain is measure share Multiple organizations, These pre-selected organizations determine who may submit transactions or access the data. A consortium blockchain is ideal for business when all the participants need to be permissioned and have a shared responsibility for all the blockchain.

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Structure of blockchain –

Blockchain consist of three important concepts:

  1. Blocks
  2. Nodes
  3. Miners
    Blocks- Every chain consists of multiple blocks and each block has three basic elements: data, nonce, and hash. When the first block of a chain is created, a nonce generates the cryptographic hash. The data in the block is considered signed and forever tied to the nonce and hash unless it is mined.
    Miners: Miners create new blocks on the chain through a process called mining.
    Nodes: One of the most important concepts of blockchain technology is decentralisation. No one can own the chain: Nodes can be any kind of electronics device that maintains copies of the blockchain and keeps the network functioning.

How to Invest in Blockchain

Along with its rapidly expanding user base formal, Bitcoin is now trend and being considered for use by a number of financial services companies. The trending news is that opportunities for investing in blockchain technology abound, giving investors to the chance to leverage the potential offered by this revolutionary technology blockchain system . now, How the investor chooses to invest in blockchain technology will largely depend on the amount of risk they are willing to incur.

there are so many ways but we know some of these so thats are theese

  1. Stockpiling Bitcoin
  2. Blockchain Penny Stocks
  3. Crowdfunding
  4. Angel Funding and Startups
  5. Pure Blockchain Technology Play

What are the uses of blockchain?

Primarily blockchain is used as a distributed ledger for cryptocurrency , most notably Bitcoins. Other than that many other fields are also using blockchain. So let’s discuss about the uses of blockchain.

Cryptocurrency:

Most cryptocurrency use blockchain technology to record transactions. For example the Bitcoin network and Ethereum network are both based on blockchain. cryptocurrency, which is based on Hyperledger fabric, to help make digital asset transactions vey faster and more convenient and safer.

Financial services:

According to a research many banks are interested in blockchain technology because it has potential to speed up back office settlement system.

Tracing fresh seafood from the moment it’s caught

For all the way to supermarkets Hotel and Restaurants, Food Trust is helping Raw Seafoods increase trust across the food supply chain by tracing every catch oceans aqua foods right from the water to catch the rights fish from the oceans

Fueling innovation in the oil and gas industry

Generally Chateau and Vertrax digital Software launched the first multicloud blockchain solution built on Blockchain Platform to help prevent supply chain disruptions in bulk oil and gas distribution.

And many more ways of uses of the blockchains like

  • Transforming healthcare outcomes with blockchain
  • Fresh thinking in blockchain, AI and IoT for supply chain
  • Increasing trust in retailer-supplier relationships

Blockchain for industries

Industry leaders are using Blockchain to remove friction, build trust and unlock new interesting value. see there are some segment.

Supply chain:

There have been several different efforts to employ blockchain in supply chain management. Blockchain technology has been used for tracking the origin of gemstones and other precious commodities. It has also been used to track food products from their origins to stores and restaurants.

Healthcare system

As the pandemic continues..2021, healthcare and the life sciences face new challenges daily…, including adapting supply chains to deliver protective equipment and rapidly developing treatments for patients, tests and vaccines directly . Meanwhile, they are grappling with how to manage consent and keep individual health data secure as they look to leverage or clear health data to safely re-open for a huge business in the data science through blockchain.

Even before the rise of pandemic of COVID-19, the healthcare and life sciences industries faced significant issues regularly, including interoperability, safe privacy, and supply chain traceability. Another major challenge is that proprietary, electronic health record systems because the patient rate is Unstoppable

And now a days Blockchain has already demonstrated its value in healthcare system and the life sciences by enabling trust and collaboration for more growth, and will continue to be at the forefront of addressing ever more challenge faces.

Some companies like Walmart, PfiZer, AIG and Unilever have already incorporated blockchain technology.

Bitcoins vs Blockchain

Blockchain was first found in 1991 by Stuart Haber and W. Scott Stornette , but blockchain had its first real world application with the launch of Bitcoin in January 2009.
If you have gone through cryptocurrency, you can mix-up Bitcoin with blockchain, but there are some significant differences in them. Those are as follows-

  • Blockchain is a technology and many cryptocurrency like Bitcoins are using it for secure and anonymous transaction.
  • Blockchain has much extensive uses but Bitcoin is only used exchange in digital currency.
  • Blockchain is a transparent mechanism, whereas Bitcoins operate on anonymity.

Is Blockchain secured?

The data of a blockchain records in hash, so that data can’t be overwritten, data manipulation is impractical. Private analysts say that the blockchain technology could be used as cybersecurity shield. The key to blockchain security is that any changes made to the data base are immidiatly sent to all users to create secure, established record. With copies of the data in all user’s hands, the overall database remains safe even if some users are hacked.

Risk management systems for blockchain networks

When building an enterprise blockchain digital application, it’s important to have a comprehensive safe security strategy that uses cybersecurity frameworks, assurance services and best practices to reduce of fear the risks against attacks and fraud.

Benefits of blockchain

What needs to change exactly:  duplicate record keeping and third-party validations is cheap so operations often waste effort on it. Record-keeping systems can be vulnerable to fraud and cyberattacks so safety first. Limited transparency can slow data verification for sometimes. And with the arrival of IoT, transaction volumes have exploded in high . All of this slows business, drains the bottom line and loses — and means we need a better way. Enter the value of blockchain.

What are the limitations of blockchain?

Like any other technologies blockchain has also two sides. So let’s discuss about some shortcomings of blockchain.Blockchains are not scalable as their counterpart centralized system. In simple word, the more people or nodes join the more chances of slowing down .

Some blockchain solutions consume too much energy. Everytime the ledger is updated with a new transaction the miners need to solve the problem which means to consume lot more

Some blockchain solutions consume too much energy. Everytime the ledger is updated with a new transaction the miners need to solve the problem which means to consume lot more energy.

The underlying cost of blockchain technology is huge, they require lots of investment from the organisation that is willing to pursue it. You also need to take care of the maintenance cost associated with the solution.

Data immutability is also major disadvantage of blockchain.

Why blockchain is important in 2021

Business runs on information. The faster it’s received and the more accurate it is, the better is very fast settlement . Blockchain is ideal for delivering that information because it provides immediate data, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members so this very secured process and cannot be corrupted. A blockchain network can track and check out orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end-to-end, giving you greater confidence to grow quickly, as well as new efficiencies and opportunities.

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