When we talk about the Blockchain technology, the only thing that most of the people at present know is bitcoin.
The world today is highly dependent on technology and its advances. Each and every department of the world achieves all its tasks using today’s technical advances.
We have developed a unique algorithm for each and everything to be done in any field if it is medical, governance, finance, security or any other field. It doesn’t matter what the task is, today’s technical advances are capable enough to process the tasks and get success in completing it. Similarly, blockchain technology is another great advancement in today’s technology.
It is considered to be a revolutionary change into the world of technology which will also influence all other sectors of the world as each and every sector is directly or indirectly linked with the technical support.
We all know bitcoins are a great application of Block Chain technology. But do you think Blockchain technology is all about bitcoins? Is there something more about it? What is Block Chain technology? How will blockchain technology influence the world in the future? How is Blockchain a revolutionary idea? Every question has an answer. Here again, we are going to give you an answer to all the questions we have discussed above.
What is Blockchain Technology?
Let’s start with getting a rough idea of what blockchain is? Well, the block can be referred to be a method of transferring and sharing the file among people. The technical definition of a blockchain is “A blockchain is a growing list of records, said blocks, using the technique of cryptography”. It was invented by Satoshi Nakamoto in the year 2008 to implement the first-ever digital currency bitcoin.
Its significance was observed when it solved the issue if multi-use of a currency. As here using the process of blockchain technology, one bitcoin can be used by only one person in a lifetime that too only for one transaction. Yes, that is the magic of Blockchain technology. You don’t need to go so deep into it.
Also Read: Fundamentals of Machine Learning
Another important thing to consider is its application in sharing a single file with a large audience. Earlier, if you want to get a file updated by someone, first you need to send him or her that file, and then you have to wait till the person make the updates and re-send it to you.
But now using blockchain technology, we have solved this time-consuming process, now we can share a single file with a large audience and all of them can check the same file anytime. To make it understand better, it is like a file available to all, and if anyone makes an update to it, it will be implemented on all of them. So we can say that all of those users were looking at a single file.
Now, let’s check how does blockchain technology works?
In blockchain technology, any information is saved in that form of a block. If a change is made in the information or data of the record in that block, another block will be generated which will save the newly updated block. If we have another update, it will again be saved in the form of another block and like this, we can have a blockchain of all the updates available for a single data. This helps us to keep track of old as well as the new updated version of anything.
Types of blockchain technology:
- Public: This type of blockchain is available to one and all. Anyone can see and change the records of such blocks.
- Private: This kind of blockchain is available to a single user or just a limited user. It helps to keep data secure.
- Hybrid: This kind has a combo of both public and private. For example, A bank has a hybrid blockchain technology. Anyone can see and change the account balance of the customers (Not anyone but an employee of the bank) doesn’t matter the branch. But only your home branch makes changes to your account details. Here we can see the implementation of both public and private blockchain technology.
What are the benefits of blockchain technology? Or what are the applications of blockchain technology?
- Cryptocurrency: – Most of the cryptocurrencies like the bitcoin network uses block chain technology to keep track of transactions.
- Smart contracts: – Blockchain technology helps in keeping a clean record of contracts. Any changes made into the contract has a record that can be viewed anytime.
Financial services: -Most of the banking services are also using block chain technology now.