What is blockchain?

What is blockchain?

Today we will tell you through this post what is blockchain and how does it work? Recently, many people have started to know about bitcoin. People have great faith in bitcoin because the price of bitcoin is increasing day by day. But do you know on which technology bitcoin works? Bitcoin works on Blockchain technology. So today we will tell you how blockchain technology works.

What is Blockchain Technology?

Blockchain is a digital ledger. But do you know what a ledger is? Blockchain technology is a platform where not only a digital currency but anything else is digitized and its records are kept. Blockchain is known as a digital ledger. Talking about bitcoin, it is a digital medium through which we and you can buy and sell some things.

In today's modern era, blockchain technology is such a technology through which money is transferred directly between buyer and seller, in this transaction we do not need any middleman like a bank, money transfer, and other payment transfer platforms. Etc. and we also had to pay a fee for this money transfer. But now with the advent of Blockchain technology, there is no longer a third party requirement and no service charges of any kind. Blockchain technology takes very little time to transact and is also completely secure.

Blockchain is a digital incorruptible ledger of transactions that is programmed in such a way that it can keep a virtual record of everything. All the list of things that are in the blockchain is called blocks.

The Technology behind Blockchain Technology

Key Technology behind Blockchain

1. Private Key cryptography

2. P2P network

3. Programs (the Blockchain Protocol)

The invention of Blockchain Technology

Blockchain technology was invented by Satoshi Nakamoto in 2008 to make it into the cryptocurrency bitcoin according to his public ledger of transactions. Satoshi Nakamoto's main motive behind doing all this was that he wanted to create a decentralized bitcoin ledger - the blockchain - that gives people the ability to control their money so that no third party or any government can access it. Or monitor this money.

Bitcoin technology is a very complex technology. It is very difficult to hack and it also keeps records of very old digital transactions. Blockchain technology is designed to keep all security in mind to protect against cybercrime and hacking.

Bitcoin works on the technology or technology of blockchain. Blockchain works on a decentralized system. A decentralized system means that this blockchain is not controlled by any bank or government. The normal bank or banking system works in a centralized or centralized manner.

How does Blockchain Technology work?

This is a popular technology that started in 2008. Blockchain technology, in which many supercomputers are peer-to-peer interconnected. Whenever the data is transferred. Then the data is taken from all the computers because in this technology the data is not kept in one place. That is why this technology is considered very secure. If any data is to be hacked from this platform, then all supercomputers will have to be hacked, which is a very difficult task.

If one of the supercomputers out of all the supercomputers goes bad, still, this system will work properly, there will be no problem.

Bitcoin also works on the same blockchain technology. Bitcoin Online is a digital cryptocurrency operating over the Internet. All transactions in bitcoin are done with the help of blockchain technology. Due to this being a decentralized currency, the transaction takes place here without any third-party direct user. All the records of all the transactions that take place are in the public ledger, due to which the chances of fraud with increasing transparency in it are negligible. In this, your personal details remain secret when you transfer bitcoin.

How Secure is Blockchain?

In today's modern technology era, nothing on the internet is secure. If we talk about Blockchain technology, then it is much more secure than other technology. Because to do any transaction in the blockchain, all the nodes of the whole network have to agree, only then the transaction will be valid. It is very difficult for hackers to hack it because the data in it is present in all the computers of the entire network. Hackers have to hack the entire network which is a very difficult task. Therefore it is impossible to hack this technology.

How many types of blockchain systems are there?

1. Public blockchain
2. Private Blockchain

 1. Public Blockchain

It is a public blockchain that is open to all people. Anyone can use this public blockchain and no one needs any permission in this. In this, all the work is done from the Internet, and with this, you can also do transactions and invest your money. The best part about this is that you do not need any permission and you don't need to pay any money for this.

As you would know that bitcoin works on the public blockchain. Many cryptocurrencies such as ethereum, dash, litecoin all work on the public blockchain.

2. Private Blockchain

Permission is required in a private blockchain. Like public blockchain can be used by everyone, but not everyone can use private blockchain, it can only be used by those who have permission. Got it Private blockchains are prone to security breaches.

Why is Blockchain Technology Good?

In this, we get a lot of security of the transaction, and all the transactions we do in this get encrypted which no third person can see, because of the blockchain technology, our transaction has become very secure. Blockchain technology works very fast with security.

Why do we need blockchain technology?

Blockchain is a mechanism that helps all of us reach the highest degree of accountability. With the advent of this technology, now there will be no missed transaction, it will reduce all the mistakes, now no third party and government consent are required behind any transaction.

Applications of Blockchain Technology

1. Smart contract

All those industries that heavily depend on contracts such as insurance, financial institutions, real estate, construction, entertainment, and law, all these industries will benefit from this technology. Because with the help of this technology, all the contracts are kept updated, managed, tracked, and secure without any dispute.

2. Supply chain management

Blockchain is a great option to manage all these processes whenever the value changes or the status of an asset changes.

3. Asset protection

Whether you are a musician who wants to get the royalties of your songs properly or you are a property owner, if you want to protect your assets then blockchain technology can help you a lot in your real-time By creating an indisputable record of ownership.

4. Personal Identification 

Governments often manage a lot of data such as personal data from birth to death records, marriage certificates, passports and census data, etc. Blockchain technology capable manage all these data according to the streamlined solution and can store them securely.

5. Payment processing 

The specialty of Blockchain is that it can easily handle the payment processing of any big company. This can completely eliminate the need for intermediaries that we often see in payment processing.

6. Crowdfunding

Compared to traditional crowdfunding, a blockchain powered crowdfunding campaign has a more secure investment from an interested community for a new project. But in such an instance, the funding will be mainly in the form of bitcoin or other cryptocurrencies.

Advantages of Blockchain Technology

This blockchain helps our smart devices to communicate with each other so that they can communicate better.

Blockchain solves the problem of manipulation. This brings everything to the level of their highest degree of accountability.

Makes online identity and reputation decentralized. So that we can own our data ourselves.

Cryptocurrencies distribute the ability to control the value of currencies from the hands of the government to the general public so that now no one will have a hand on the value of currencies.

In an informal economy, the blockchain protects us from the middleman so that the asset can be exchanged easily and freely.

Blockchain technology helps, many issues related to freedom, jurisdiction, censorship, and regulation can be addressed correctly and smoothly.

With Blockchain-based systems, there is no need to keep any more intermediaries, but records and transfer of assets can be taken care of easily. Due to which the transaction speed increases.

The data that is entered once becomes immutable in the blockchain, which can no longer be changed in any way, which reduces the chances of fraud to a great extent.

Nowadays fraud is increasing very much on the internet. Internet security can be promoted with blockchain. Incidents like hacking can be reduced to a great extent through this.

The data stored in blockchain technology is never corrupt because it is not stored in a single computer but in millions of computers. It can be accessed at any time and personal data can be preserved for a long time through blockchain technology.

 
Where Blockchain Technology Can Be Used

Banking Sector – Blockchain technology can make a big difference in the banking sector. The banking sector usually sees many things like identity theft, cost efficiency, and all these pose a lot of danger in banking. Happens. It can be safe and low cost with the use of blockchain technology.

Cloud Storage – Storage is an open-source cloud storage program based on blockchain technology where you can sell your extra hard drive space. Blockchain technology can also prove beneficial in the field of cloud storage.

Public Records - The government has many records which are lying in the files. Often due to their loss or destruction due to some reason, it becomes difficult for the government to ensure their safety. So blockchain can become a great solution for this. The government can encode the data and upload it on the digital ledger.

Use in Land Deal – Land deals can be simplified by using Blockchain technology. Blockchain can prove to be a big help in making the document work safe and easy during this.

Education – Blockchain technology can be very beneficial in the field of education too. Nowadays there are many cases like fraud and paper leaks in education. In such a situation, it can be stopped by using blockchain.

Product Coverage – This technology can be used in many other places besides money-related transactions. It can be used to deal with other digital products like insurance, investments, etc. This will not only help in increasing the security of the data but it can also reduce the cost and also save processing time.

Future of Blockchain

By now you must have understood what the usefulness of Blockchain is and how it can be used in all our work. Our thinking about this information has been changed, how and where information can be stored, who can access this information and what can we do with this information. Which is the main reason some organizations are against it because of how blockchain organizes information and maintains our records-keeping infrastructure goes to the heart of these things. It is clear from this that people will not accept Blockchain technology so easily and it is not going to come overnight because it challenges traditional technology at every step.

We had seen a similar case in TCP / IP, which was initially criticized a lot but later it took about 30 years to implement it, but finally, everyone understood its importance. In the same way, the world is still taking time to understand Blockchain, but in a few years, it will definitely be adopted.

I have full hope that I have told you guys what is Blockchain Technology? And how does this work? Gave complete information about it and I hope you guys have understood what is Blockchain. If all of you readers liked this post, then do share it.

Thank you.