What
is Blockchain Technology?
Before we talk about Blockchain it is
important to know the role intermediaries play in economy. Intermediaries like
banks and government facilitate the transaction of goods and services by creating
trust and certainty. Like when an individual or business makes an electronic
payment, they require a bank to track and record the transaction or when an
individual buys a real state property then they need local government body to
keep records stored. What if there was a
way of making a transaction that didn’t require the use of trusted
intermediaries like banks, government or local body?
Blockchain enables transaction of almost
anything available in digital form like digital money, assets or information,
etc from one individual to another individual without using any intermediaries.
Blockchain is open and distributed
ledger, comprised of unchangeable, digitally recorded data in packages called
blocks. These digitally recorded blocks of data are stored in linear chain.
Each block in the chain contains data which is cryptographically hashed. The
block of hashed data draw upon the previous block in the chain, ensuring all
data in the overall Blockchain has not been tampered with and remains unchanged.
It is believed to be useful for any
sector that has complex and large scale back office processes that may involve
phone calls, emails and paperwork for example banks and remittance business.
Similarly the technology can also be used wherever there is a need for
reporting, transparency and dissemination of data, say stock exchange and
clearing houses.
What
is its advantage?
“It can Eliminate middle man” Because it
validates transactions and the value of the property being transacted
Blockchain can reduce the middle man, be
it the art dealer, real estate agent, music agent or estimator. With Blockchain, artists can go straight
to the people, rather than through music labels, to protect their own music and
royalties.
“No reconciliation required” In current
setup, for reconciliation, manual intervention is required which is done
through an intermediary. In Blockchain there is no need for reconciliation,
which is usually the back office in most businesses. This helps to reduce
costs.
“It can Validate and Secure almost
anything” The application built on this technology is believed to be difficult
to break into. Saket Modi, CEO of Lucideus Tech “When you make any transaction,
you have to sign it off using a digital signature which is cryptographically encrypted
and is difficult to hack into. As every added block broadcasts the transaction
into a public ledger, in case of fraudulent transaction, every node can spot it
and deny the proceedings.
How
Blockchain works?
In this example we have seen how a monetary
transaction took place however in the same ways every agreement, every process,
every task and every payment would have a digital record and signature that
could be identified, validated, shared and stored without any intermediaries
like lawyers, bankers and brokers. Any machines, algorithms, organizations or
individuals would freely transact and interact with one another with no or
little friction.
5 comments:
The idea of blockchain was popularized by bitcoin, but it is starting to be used for purposes beyond tracking digital currency. This technology is flexible and can be used to store information of all types, making it appeal to many different companies.
neoonlinewallet
The reason for the interest in Blockchain is its central attributes that provide security, anonymity and data integrity without any third party organization in control of the transactions, and therefore it creates interesting research areas, especially from the perspective of technical challenges and limitations.
neo web wallet
Blockchain Technologies (blockchaintechnologies.com)
Blockchain Technologies is a huge static content website that covers practically every single question you might have about blockchain. Additionally, the site also has a news section where stories from the largest cryptocurrency news blogs are gathered.
I added this site to this list of the 27 best cryptocurrency blogs for three main reasons. The first is that the content is absolutely amazing. It is very obvious that the writer spent A LOT of time researching about cryptocurrencies. Secondly, the UI of the website is astonishing. The colors are very well picked, the site charges in the blink of an eye and it is completely responsive. And finally, although the Blockchain Technologies blog has a couple Ads, it is very clear that the main objective of the site is to inform, and not to just make money with visitors.
"https://www CoinDesk
.coindesk.com/
With over 10 million unique visitors, CoinDesk is the leading digital media, events and information service company for the crypto asset and blockchain technology community."
https://www CoinDesk
.coindesk.com/
With over 10 million unique visitors, CoinDesk is the leading digital media, events and information service company for the crypto asset and blockchain technology community
Post a Comment