A blockchain collects information together in groups. The blocks hold the information. These blocks have certain storage capacities and, when filled, are chained onto the previously filled block, forming a series of data referred to as the “blockchain.” The new information follows the added block and is compiled into a newly formed block. The data entered is added to the chain once filled. The applications with blockchain are structured and chained together. A blockchain is a type of database.

What is a Database?

It is a collection of information that is stored electronically on a computer system. Information in databases is typically structured in a table format which helps in easy searching and filtering the specific information. A blockchain structures its application into blocks that are chained together.

BLOCKCHAIN: COMPONENTS

  • PRIVATE KEY CRYPTOGRAPHY: Cryptography is used with an algorithm to encrypt and decrypt the code.
  • P2P NETWORK (PEER TO PEER NETWORK): It is a decentralized network model that consists of nodes (where each node acts as an individual peer) that store and share files collectively where each node acts as an individual peer.
  • PROGRAM (THE BLOCKCHAIN’S PROTOCOL): It is used to protect a database called a ledger across a distributed network of nodes.

BACKSTORY BEHIND IT?

1982- David Chaum proposed a blockchain-like protocol in his dissertation.

2008- Satoshi Nakamoto conceptualized the first blockchain in the year 2008. He improved the design by employing a Hash cash-like method to timestamp blocks without the necessity of sign by a trusted party. He introduced a difficulty parameter to balance the rate with which blocks are added to the chain.

2014- The bitcoin blockchain file size contained records of all transactions that occurred on the network, reached 20 GB. In the year 2015, the size increased to almost 30 GB.

2016- The bitcoin blockchain file size grew from 50 GB to 100 GB. The ledger size also grew 200 GiB at the starting of the year 2020.

Are you still thinking about the benefits?

Accuracy of the Chain:

Applications on the blockchain are approved by a network of thousands of computers. This eliminates the human involvement in the verification process which results in less human error and the information is recorded accurately. By chance, if the computer makes any mistake, the error would be made to one copy of the block in the blockchain. As we all know business runs on information. The faster the information is received, then it should be accurate, and is considered better. Blockchain is accurate for delivering the information as it provides completely transparent and immediate information stored on an entrenched ledger which can be accessed only by permissible network members. A blockchain network can keep track of orders, payments, accounts, production, and whatnot. We know that members share a single view of reality, so you’ll be able to see all details of a transaction end-to-end, providing you with greater confidence, new efficiencies, and opportunities.

Decentralization:

The application with Blockchain is not stored in a central location. Instead, the blockchain is copied and spreads across a network of computers. Whenever a new block is added to the blockchain, every computer on the network updates its blockchain and reflects the change. With this feature of spreading the information across a network, instead of storing it in one central database, blockchain becomes tougher to tamper with. If a replica of the blockchain fell into the hands of a hacker, only a single copy of the data, rather than the whole network, would be compromised.

Security:

Blockchain is much safer than the other record-keeping systems because each new transaction is encrypted and linked to the previous transaction. Blockchain is created by an advanced string of mathematical numbers and is impossible to be altered once formed. This entrenched and trustworthy nature of blockchain makes it safe from falsified information and hacks. Blockchain is a very promising and revolutionary technology because it helps reducing risk, eliminates fraud, and brings transparency in an innovative way for infinite uses.

CONCLUSION:

Blockchain Technology is very useful in almost every field of business, be it:

  • Banking- The banking institutions make transactions daily with digital currencies, this can be made easy with blockchain technology.
  • Transportation- This field involves a lot of paperwork, but by using blockchain technology unnecessary paper is eliminated and trucks can do fast delivery.
  • IT sector- Applications with Blockchain are safe as it stores and verifies the data and lessens the chance of any error or hacks.
  • Gaming Industry- Blockchain technology provides a secure environment to develop applications and games.
  • Healthcare- Blockchain technology helps to store data regarding medicines and data about patients. It also secures the data and saves it from any further misuse.

Hence, using Blockchain Technology one can create more secure, safe, and transparent applications with entrenched records.

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