Yes, you read it right. We are talking about Blockchain in this blog. Have you ever imagined how and why this technology is so emerging in the 21st century?
No Idea? Well, no need to worry about; I will tell you.
Before diving deep, let's start with what Blockchain is.
What exactly is Blockchain
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(Image source: bitcoinisle.com)
Blockchain means a "Chain of Blocks". A Blockchain is a distributed ledger which uses state-of-the-art cryptography. It is a continuously growing list of records called blocks that are linked and secured by cryptography. Each block contains the cryptographic hash of the previous block, timestamp, and transaction data. The person or the group of persons behind the emergence of blockchain is named as Satoshi Nakamoto. Why I am saying it like this is because the identity of the inventor behind this tremendous technology is completely anonymous. Nobody knows anything about who invented this technology. They only know the name.
The idea behind blockchain is to establish a trust through mass collaboration and clever smart code instead of through powerful financial institutions that do the authentication and financial settlements.
The feature of blockchain which I like the most and which makes blockchain so special is that records can be distributed to participants securely and can’t be manipulated. No entity can control the network and transactions happened without relying on any central authority.
Sometimes, people confuse about blockchain that it only stores who paid to whom means only financial transactions. Blockchain can record any structured information like who paid to whom, who married whom, or who owns what land, or what light bought power from what power source.
Why Blockchain is so popular
The main reason behind the popularity of the blockchain is cryptocurrencies. I am pretty sure you’ve heard of Bitcoin. Why bitcoin is so popular because of its decentralized nature, anonymity, and transparency in transactions, fast transactions speed, no control of single authority over the network, completely secure and non-hackable nature (because thousands of systems around the world keep a backup of each transaction). Bitcoin blockchain is the biggest blockchain till yet.
Just imagine there is a decentralized public ledger which keeps records of all your transactions and there is no governing body controlling it. The answer is blockchain.
Bitcoins aren’t printed, like rupees or dollars — they’re produced by people by using some complex algorithm which is called Mining Bitcoin.
One of the most talked about advantages involving blockchain technology is how it can prevent future payment scams. For starters, it would protect both buyers and sellers by using smart contracts. This procedure would avoid those instances where you purchase an item and the seller doesn’t follow through.
Another way that scams are thwarted is that since all transactions are recorded, a coin can’t be used for double-spending or counterfeited. Once a coin, token or electronic currency is spent, it can’t be used again.Thus, it also solves the double spending problem.
Some common use cases of Blockchain
- Cryptocurrencies
- Cross-border payments (e.g. Ripple blockchain)
- Smart contracts
- Digital voting
- Distributed storage
- Identity management
- Supply Chain Management
- Cybersecurity
- Forecasting
- Internet of things
In the end, though Bitcoin is facing lots of problems and hurdles right now, experts predict that it will become the global currency in coming years. The whole world is going gaga over this technology, and this is going to be the next big thing in the online space.
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