“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not only financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors of Blockchain Revolution (2016). It is a simple yet innovative way of transmitting data from A to B. It consists of a network of computers called nodes, which keeps a copy of all the recorded transactions. Whenever a performance takes place, the system is made aware of it. Every node is responsible for authenticating the transaction. Blockchain has an infrastructure cost but not any transaction cost. Changing data and statistics or doing fraudulent activity is next to impossible as it alerts the whole network. Therefore data about every transaction is recorded in the form of a cryptographic hash. For example, “Alice gave 300 Bitcoins to Bob.” will be recorded in an alphanumeric string form, called hash. Every different piece of information presents a particular hash string. The most insignificant changes in the information would lead to a distinct hash string. This feature of hash strings makes information stored on the Blockchain immutable.
Blockchain technology has made transaction histories more transparent. The interface members share the same documentation as presented to individual copies. Changing a single transaction record would require changes in all corresponding documents, creating havoc. Thus heavy paperwork displays accurate, consistent, and transparent results. These results are available to every participant who has access to the computer networks. Approving the transactions before recording them is an important step. Only after permission, the data is encrypted and then linked to the previous transactions. In every industry, it is essential to preserve sensitive information. This method of recording data removes such barriers and helps to keep information and data safe. Blockchain helps in the supply and exchange of goods. It is sometimes difficult to track the origin or current status of an order. Blockchain gives you an audit trail that shows where an asset came from, and every stop it has made on its journey.
It is a cost-effective method with better results. It helps to increase the efficiency and growth rate of an enterprise. There is a high demand for blockchain developers because every enterprise wishes to survive in the long run and utilize technology to its fullest.
BLOCKCHAIN AND CRYPTOCURRENCY WORK SIMULTANEOUSLY.
. Blockchain is an underlying technology that developed for the exchange of the first cryptocurrency called Bitcoin. Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to carry out financial transactions. It does not fall under the government’s jurisdiction, so it is immune to the old ways of government control and interference. A cryptocurrency is a form of digital cash available for P2P networks. In a P2P network, computer systems known as peers are connected via the internet. Files can be shared directly between systems without the need for a central server. It is stored in the decentralized ledger of the Blockchain. Cryptocurrencies can be directly transferred between two parties enabling them to evade processing fees charged by traditional financial institutions. “In the next few years, we are going to see national governments take a huge step towards instituting a cashless society where people transact using centralized digital currencies. Simultaneously, the decentralized cryptocurrencies that some see as more difficult money will be prominent in all sectors.” – Caleb Chen London Trust Media.
SMART CONTRACTS: ANOTHER STEP TOWARDS DIGITAL GROWTH.
Wikipedia states that a smart contract is a computer protocol designed to digitally facilitate, verify, or enforce the intervention or performance of a deal. Small contracts allow the execution of transactions without third party interference. For example – “if this happens, do that.” External data inputs trigger it. These transactions are trackable and irreversible. They help you exchange money, shares, or anything that value in a transparent and hassle-free. Instead of paying third parties to do your job, smart contracts make you self sufficient. The benefits of smart contracts are most apparent in business collaborations. They are typically used to enforce some agreement so that all participants can be sure about the outcome without an intermediary’s involvement. Smart contracts are developed on the Blockchain, so it can’t be re-edited once written. This feature makes it ideal for enforcing mutually agreed upon obligations on both the parties in the occurrence of a specific event.
This article was written by Parag Arora, ex-IIT , serial entrepreneur, ex-Paytm , ex – Ycombinator and CTO to major firms like Glowing.io , Xfinite.io etc. Parag has been mentoring us for the tech advisory related to the engineering talent assesment as well as scouting.