What Is Blockchain Technology In Upcoming Future ?

What Is Blockchain Technology In the Upcoming Future

What Is Blockchain Technology In the Upcoming Future:

• Blockchain Technology:
• Blockchain is the technology of the Digital Cryptocurrency Bitcoin. It is a distributed database of records of all transactions that have been executed and shared among participating parties. Each transaction is verified by the majority of participants of the system. It contains every single record of each transaction. Bitcoin is the most popular cryptocurrency example of the blockchain. Blockchain was invented by a person ( or group of people ) using the name 'Satoshi Nakamoto' in 2008 to serve as the public transaction ledger of the cryptocurrency bitcoin.

• The Three Pillars of Blockchain Technology:
• The three main properties of Blockchain Technology which have gained widespread acclaim are as follows:
• Decentralization: Bitcoin and Bit Torrent are used to centralize service. You have a centralized entity that stores all the data and information you require solely with the entity to get whatever information you require. For example, in Google, when you search for something, you send a query to the server and then it gets back to you with the relevant information.

          Centralized systems have treated us well over the years, but they have several flaws:

• Because all the data is stored in one spot, it makes them easy target spots for hackers.
• If the system shuts down, no one would be able to access the information.
• If the system needed to be upgraded, the whole system needs to be halted.
• If the entity gets corrupted, then all the data in the blockchain would be compromised.

• Immutability: Immutability, in the context of the blockchain, means that once something has been entered into the blockchain, it cannot be tampered with. In simple terms, hashing is when data is converted into a unique string of text. This means that any type/piece of data can be hashed. In terms of cryptocurrency, the transaction is turned through a hashing algorithm, which gives an output of a specific length. In the same way, there are different types of data, and different types of hashing (for example, MD5, SHA-256, CRC32).
• Transparency: One of the most interesting and misunderstood concepts in blockchain technology is transparency. Some people say that it gives you privacy while some say that it is transparent. A person's identity is hidden through complex cryptography and represented only by their public address. So, if you were to look at a person's transaction history, you will not see "be sent 1 BTC" instead you will see 

                "1MF1bhsFLKBzzz9vpFYEmvw

                       TwTbyCt7NZj sent 1 BTC".

           So, even though the person's identity is a secret, all their transaction that was done by their public address are transparent. Therefore, if you know the public address of a big company, you can simply enter it into your browser and look at all the transactions they have engaged in.

 How Does Blockchain work?

1. Blockchain keeps a record of all data exchanges. This record is referred to as a ledger in the cryptocurrency world, and each data exchange is a transaction. Every verified transaction is added to the ledger as a block.
2. It utilizes a distributed system to verify each transaction. It is a peer-to-peer network of nodes.
3. Once signed and verified the new transaction is added to the blockchain and cannot be altered.

        For example, imagine two entities ( for example, banks ) need to update their own user account balances when there is a request to transfer money from one customer to another. They need to spend a tremendous amount of time and effort on coordination, synchronization, messaging, and checking to ensure that each transaction happens exactly as it should. Typically, the money being transferred is held by the originator until it can be confirmed that it was received by the recipient. With the blockchain, a single ledger of transaction entries that both parties have access to can simplify the coordination and validation efforts because there is always a single version of records, not two dispersed databases.

Benefits of Blockchain Technology:

• Secure data: Blockchain network is way better than traditional methods of saving records on paper. The details of every transaction are stored across the network, which makes it difficult for hackers to hinder security. This is the reason why industries such as finance, banking, and so on. Where the data shared is sensitive, are turning to blockchain technology for a solution.

• Transparency: A piece of data that is shared via blockchain technology is complete in itself, accurate, and consistent with all the members. The distributed structure of the blockchain makes it possible for users to control and access details about the transaction.

• Easy to trace: The company deals with products that are complex in nature and pass through various computer networks. You might never know where the product originated and where it was finally delivered. But with blockchain, you can easily trace the entire journey that the product made throughout the network. This helps prevent any fraud or manipulation.

•  Faster transaction: Interbank transactions can potentially take days for clearing and final settlement, especially outside of working hours. Blockchain transactions can reduce transaction times to minutes and are processed 24*7.

The disadvantage of Blockchain Technology:

• Effects the entire process: If a single piece of data in the blockchain network is to be altered, then the complete set of related data also needs to be changed. Thus, if at a certain time, you need to alter a single data entry, then you need to go through the entire process of changing every related data.

• Large energy consumption: The bitcoin blockchain network's miners are attempting 450 thousand trillion solutions per second in efforts to validate the transactions, using substantial amounts of computer power.

• Integration concerns: Blockchain applications offer solutions that require significant changes to existing systems. To make the switch, companies must strategize the transition.

• Culture adoption: Blockchain represents a complete shift to a decentralized network that requires the buy-in of its users and operators.

• Cost: Blockchain offers tremendous savings in transaction cost and time but the high initial capital costs could be a deterrent.

Who uses the Blockchain?

• Blockchain technology can be integrated into multiple areas. The primary use of blockchains is as a distributed ledger for cryptocurrencies. It shows great across a wide range of business applications like banking, finance, government, healthcare, insurance, media and entertainment, retail, and so on.

Need for Blockchain:

Blockchain Technology has become popular because of the following reasons:

• Time reduction: In the financial industry, blockchain allows the quicker settlement of trades. It does not take a lengthy process for verification, settlement, and clearance. It is because of a single version of data available between all stakeholders.

• Unchangeable transactions: Blockchain registers transactions in a chronological order which certifies the inalterability of all operations; it means when a new block is added to the chain of ledgers, it cannot be removed or modified.

• Reliability: It certifies and verifies the identities of each interested party. This removes double records, reduces rates, and accelerates transactions.

• Security: It uses advanced cryptography to make sure that the information is locked inside the blockchain. It uses distributed ledger technology where each party holds a copy of the original chain, so the system remains operative, even if a large number of other nodes fall.

• Collaboration: It allows each party to transact directly with each other without requiring a third-party intermediary.

• Decentralized: It is decentralized because there is no central authority. There are standard rules on how every node exchanges blockchain information. This method ensures that all transactions are validated, and all valid transactions are added one by one.

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