fbpx
9.2 C
New York
Tuesday, November 24, 2020

The Fundamentals of Blockchain Technology: Some Interesting Facts

Nowadays, we frequently come across the term blockchain technology. A blockchain is an increasing list of records or blocks that are connected with the help of cryptography. 

Every block has a cryptographic hash of the earlier block as its component, transaction details (typically symbolized as a Merkle Tree), and a timestamp.




What is Blockchain Technology: Important Features?

According to its blueprint, a blockchain is immune to alteration of its data or credentials. It is due to the reason that as soon as its documentation, no one can modify the data in any particular block in a retrospective manner without modification of all the succeeding blocks.

blockchain technology in supply chainA blockchain is normally supervised by a peer-to-peer (P2P) network for application in the form of a distributed or decentralized ledger. This network cooperatively abides by a protocol for the inter-node exchange of information and authenticating fresh blocks. Even though blockchain registers or records are unchangeable or unmodifiable, blockchains are regarded as secure by design (SBD). They represent a decentralized calculation scheme with elevated Byzantine fault tolerance.

The definition of blockchain is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”.




Goal of Cryptocurrencies

investing in blockchain technologyIn 2008, a group of individuals designed blockchain and they used the name of Satoshi Nakamoto. The goal was to create a platform that would assist as the public transaction ledger of the Bitcoin cryptocurrency. The development of the blockchain for Bitcoin turned it into the foremost digital currency that worked out the double-spending issue without necessitating a central server or reliable regulatory agency. The blueprint of bitcoin has encouraged other uses and applications. Cryptocurrencies are now extensively using blockchains that are decipherable by the common people. People look at blockchain as a form of payment rail (payment platform or payment network that transfers funds from a payer or drawee to a payee or drawer). For business applications, private blockchains have the highest recommendation. Computerworld, a famous computer magazine, termed the merchandising of this type of blockchains in the absence of a suitable security pattern as “snake oil”.

Related Article: The Bitcoin Bedlam: An Investment Disruption Narrative

What are the Blocks?

learning blockchain technologyBlocks operate as storehouses of authentic transactions or deals that have been encrypted and hashed into a Merkle tree. Every block contains the cryptographic hash of the previous block existing in the blockchain and it connects the two. As a result, the connected blocks comprise a chain. It is a repetitive procedure and this corroborates the inclusion of the preceding block, completely to the pilot genesis block.

Applications of Blockchain Technology 

Nowadays, blockchain technology is present in various domains. At present, blockchains are mainly used in the form of a decentralized ledger for cryptocurrencies. Blockchains mostly transact in bitcoins. Moreover, there are a handful of functional merchandises developing from proof of principle or proof of concept by the latter part of 2016. Businesses have been hitherto unwilling to put blockchain at the centre of the business organization.




  • Cryptocurrencies

what's blockchain technologyNowadays, blockchain technology has its applications in the majority of cryptocurrencies for documenting transactions. For instance, the Ethereum network and bitcoin network both function based on blockchain. Facebook asserted about the launch of a fresh blockchain group on May 8, 2018. David Marcus, who previously led Messenger, is the chief of this group. Libra, the much-awaited cryptocurrency platform of Facebook, was officially declared on June 18, 2019. 

  • Financial services

blockchain applicationsA significant portion of the financial industry is using distributed ledgers for application in banking. As a result, of IBM’s research in 2016, this is happening much before their expectations.

More and more banks are getting keen to use blockchain technology since it can accelerate the back-office clearance setup.

Banks like UBS Group AG are establishing new research laboratories for blockchain technology. The objective is to delve into the innovative and potential ways in which blockchain application can take place in the financial sector to raise productivity and lower expenses. 

Other areas where blockchain technology has its applications include the following:

healthcare blockchain

  • Food supply – Popular names include IBM, Walmart, HerdX, and Fogo de Chao.
  • Mining – Everledger, DTC are some prominent names using blockchain applications.
  • Blockchain software developmentHyperledger Grid, the blockchain endeavour of the Linux Foundation.
  • Shipping – Walmart Canada.
  • Healthcare  – Ernst & Young adopts healthcare blockchain systems
  • Domain names –  Namecoin, Unstoppable Domains, and Ethereum Name Services

Other blockchain applications include sales data compilation, monitoring digital applications, and payments to content originators like instrumentalists or wireless customers. Blockchain also has applications in parametric insurance, peer-to-peer insurance, as well as microinsurance. The insurance industry is implementing new distribution systems as mentioned above after the approval of blockchain. The Internet of things and the sharing economy will gain from blockchains since they necessitate various co-operating peers. One more application is online voting.




Other patterns of blockchain include:

Cryptocurrencies

  • Hyperledger: It is a cross-sector joint endeavour from the Linux Foundation for assisting blockchain-oriented decentralized ledgers. Under this endeavour, ventures include IBM-led Hyperledger Fabric and Hyperledger Burrow by Monax.

 

  • Tezos: For decentralized voting.
  • Quorum: It is a private permission-able blockchain by JPMorgan Chase with the availability of private storage. Its implementation is for contract usages.
  • Proof of Existence: It is an online service to authenticate the presence of computer files from a particular period.

 

Kiara Dutta
Kiara Dutta comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

Latest news

Are There Planets Like Earth?

The search for planets like Earth has always been a scientists' area of interest. Most of the alien planet discoveries were made by the...

Racism Deemed As A ‘Public Health Threat’ – AMA

Even as the coronavirus continues to surge in the United States (US), the nation’s largest association of medical practitioners and public health care have...

How Long Till the COVID Vaccine Trials Hit the Market?

The desperation for the Coronavirus Virus The coronavirus, or the Covid-19, to be more specific, for almost a year now, is posing the biggest challenge...

Top 4 Side Effects of Sparkling Water

It is a well-known fact that water is a very essential part of our wellbeing and unarguably the most important part of our diet....

Coronavirus Vaccine Update

China reported the first case of Covid 19 in November 2019 in Wuhan. It was only a matter of time when the seemingly harmful...

USA Coronavirus Vaccine – What is USA planning?

Coronavirus Coronavirus or Covid-19 is the deadliest virus which first formed in Wuhan, a city in China. The virus slowly started to spread in the...

Want Hassle-Free Transactions? Check Out this App

What makes a credit card app great? The idea of a credit card app is to ease out tracking and management of finances. A credit...

Read Also

Want Hassle-Free Transactions? Check Out this App

What makes a credit card app great? The idea of a credit card app is to ease out tracking and management of finances. A credit...

Know Why Buying Made Comfortable With Select Credit Cards

Best Credit Cards to Buy The best credit card to have for any purpose like traveling, for students, and more may vary according to many...

Best Credit Card for Students – Build Credit while in School

Why choose the best credit card for students? One may wonder why students should own credit cards while in school. How must a young adult...

Best Fuel Credit Cards – Earn while Travelling

Which is the best credit card for gas? The best credit card for fuel? Which is the best credit card for gas? The best credit card...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here