Blockchain technology, or sometimes referred to as “Distributed Notebook Technology” (DLT), is called transparent and public notebooks. Blockchain has made digital assets immutable with the help of decentralization and cryptographic hash.
Blockchain technology allows users to securely transfer ownership of digital assets using evidence of public key encryption and working methods.
Also, the blockchain network is protected by decentralized consensus. Since blockchain is working on decentralization, it cant be managed by third parties like governments and central banks. In other words, as the network grows, it becomes decentralized and becomes more secure.
More simply, put it in blockchain technology; digital assets are distributed instead of the copy, which makes it a distributed distribution platform. Since blockchain technology is decentralized, it provides real-time access to users who make it transparent. Blockchain technology is a transparent ledger that creates trust in digital assets.
Blockchain technology is basically a combination of 3 proven technologies including internet, protocol management incentive and private key encryption. These technologies made Satoshi Nakamoto’s idea of Bitcoin so valuable.
History of Blockchain Technology
The history of Blockchain is very new and interesting. Multiple events took place in the development of blockchain technology.
Bitcoin is invented back in 2008 by an anonymous group which called “ Satoshi Nakamoto” and back in 2009 Nakamoto made first Bitcoin transaction using blockchain technology.
In 2014, this distributed ledger technology was separated from cryptocurrencies because of its great potential for transparent transactions in other sectors. That technology is called blockchain 2.0 as it can be applied beyond the cryptocurrency.
How does it work?
Blockchain technology includes three key concepts which is including blocks, nodes and miners.
- Blocks: In the blockchain, blocks are actually pieces of digital information that store information about transactions such as time, date, dollar amount, digital signatures, and users. Each block contains a matchless code which known as “Hash” (specific cryptographic codes).
- Miners:New blocks are created by miners through a process known as mining. This process uses special software to solve complex math problems to generate hash. After the new block has been successfully removed, all nodes in the network agree to hash.
- Nodes: Because of the decentralization, no computer has a blockchain. All of the chains are connected by nodes, which can be any electronic device that runs the blockchain network. In the blockchain, many blocks that form a chain are linked together. For Blockchain to work and add a block, the process must be verified by a computer network. These operations are then stored in the block. After verification, a green light appears as a signal. Next, a hash must be given to the block containing a specific identifying code. Once the block has been mixed, it is added to the public blockchain.
Practical Implications of Blockchain Technology
This technology enables internet users to create value and authenticate digital information. In addition to the benefits of monetary transactions, blockchain technology has other revolutionary applications in our lives.
- Cryptocurrency:With the help of blockchain technology, Bitcoin transactions can be done without any central authority. With the help of that it reduced the risk of losing money,transaction and transaction fees.
- Smart Contracts:This technology enabled the coding of simple contracts executed when certain conditions were met. The Ethereum platform, a blockchain project, helps to realize this possibility. Smart contracts included in this technology make it easy to negotiate and verify contract deals.
- Banks:Banks can take advantage of blockchain technology. It takes time for your transaction to be verified when done through financial institutions. In contrast, Blockchain technology never sleeps and can perform transactions instantly and at any time. The integration of this technology into banks allows consumers to see their transaction processes.
- Healthcare:Blockchain technology helps the healthcare industry secure patients’ medical records. The patient’s information is coded and stored with a private key, which can be accessed by an authorized person when necessary.
- Voting:When it comes to voting, this technology helps to eliminate the possibility of fraud while increasing voter involvement. The protocol maintains transparency in voting, reducing the need for staff to run the election and provide instant voting results to the authorities.
- Supply Chain:Blockchain technology also helps suppliers to accurately record information about purchased materials. This helps verify the authenticity of the products.
