What is Blockchain Technology | How does Blockchain Work?

What is Blockchain technology

Blockchain technology is a technique in which money is transfer directly between the buyer and the seller. This transaction does not require any middleman. Currently, the transfer of money between two people takes place through third parties only. These are third parties like a bank, PayPal, money transfer, etc. And we have to pay more service charges for these transactions. Whereas blockchain does not require third parties. Transactions are complete in Blockchain technology, take very little time. Also, the blockchain is completely secure.
What is Blockchain Technology & How does Blockchain Work, Techno Prsh
What is Blockchain Technology & How does Blockchain Work

Launched by Bitcoin Technology in 2008-09, this technique is extremely complex. It is considering difficult to hack, and it keeps the details of all digital transactions that have ever happen. 
Blockchain technology is known as a full-proof system to prevent cybercrime and hacking.
A blockchain distributes a database in which multiple consecutive records create, that know as blocks. In which each block links to its previous block. In this technology, encrypt, or secret data on thousands of computers are safe, it also knows as a public ledger. To hack it, all the thousands of computers will have to cyber-attack simultaneously. This is impossible, blockchain is based on the digital currency bitcoin.

What is Bitcoin

Bitcoin currency is a decentralized cryptocurrency. That can use anytime, anywhere. It was discovered by Satoshi Nakamoto that this currency is becoming increasingly popular. In 2005, where a bitcoin cost Rs 5. Today, in the year 2020, the price of a bitcoin is more than about 7,54,483.69 rupees.
Bitcoin is not owned by any person, government, or company. Because of this, if there is any kind of dishonesty, then no action can be taken on it. Because it is not in the control of the government. And being safe, its misuse is increasing in criminal activities like smuggling drugs. However, its use is illegal in India.

Who created the blockchain?

The first recorded mention of Blockchain technology came in the text, or white paper, published in 2008 by a mysterious founder or founder of bitcoin, known as Satoshi Nakamoto. Speculation about the true identity of this undeniably brilliant coder continues today, with Nakamoto claiming in the initial letters of a Japanese-born man born on 5 April 1975.
However, due to their decision to document the mastery of bitcoin and language in English, the general perception in the blockchain community is that Nakamoto is of non-Japanese origin and that they are either European or North American.
There are several theories as to why Satoshi Nakamoto chose to remain anonymous, although the consensus is that he was a timid developer who did not care about the things that would undoubtedly come with creating such disruptive technology.
It is also worth noting that Satoshi Nakamoto did not create every aspect of the blockchain from scratch. In fact, none of the technologies used in the blockchain was particularly new and had been around for many years. However, this happened when it was used in combination with one another to describe where Blockchain technology goes, and it became a revolutionary offering.

How does blockchain work?

Imagine a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to update this spreadsheet regularly and you have a basic understanding of the blockchain.
Information placed on a blockchain is a shared – and continuously reconciled – database as it exists. It is a way of using the network that has obvious benefits. The blockchain database does not store in a single location, which means that the records it holds are actually public and easily verifiable. There is no central version of this information to corrupt for a hacker. Hosting millions of computers simultaneously, its data and information are accessible to anyone on the Internet.
When a new transaction or an existing transaction comes into the blockchain to edit, most nodes within a blockchain implementation typically have to execute an algorithm to evaluate and validate the history of individual blockchain blocks. If most nodes have a consensus that history and signature are valid, a new block of transactions accepts in the ledger, and a new block adds to the chain of transactions. If the majority does not accept additions or modifications to the laser entry, it rejects and does not add to the series. This distributed consensus model is one that allows the blockchain to run as a distributed ledger without the need for something central, telling the authority whether the transactions are legitimate (and more importantly) those that are not.

What are the benefits of Blockchain?

Blockchain is attractive to various constituencies for several reasons, including-
The lack of a central authority requirement makes it an ideal ledger and settlement solution for joint ventures and allied relationships. Which are usually made on the same or 50/50 footings without the provision of an intermediary or manager. Computers verify and dispose of transactions. Clearinghouses and other settlements eliminate the need for agents, providing seamlessness in a business arrangement. And generally reduce costs by improving the speed at which transactions can be verified, settled, and recorded. Also, the blockchain is completely secure.
In this technology, encrypt, or secret data on thousands of computers are safe, it also knows as a public ledger. To hack it, all the thousands of computers will have to cyber-attack simultaneously. This is impossible, blockchain is based on the digital currency bitcoin.
Digital signature and verify make it difficult to imagine a scenario in which a bad hacker can cause fraud and present problems that are costly to remove and solve. Cryptographic integrity of the entire pending transaction, as well as an examination by multiple nodes of the blockchain architecture, threat prevention, and malicious use of technology.

Applications of Blockchain Technology in various industries

Blockchain technology can use in many industries including financial services, healthcare, and also use in government, travel and hospitality, retail, and CPG.

Financial Services

In the financial services sector, Blockchain technology already implements in many new ways. Blockchain technology simplifies and streamlines the entire process of asset management and payments by providing an automated business lifecycle where all participants will have the same data access about the transaction. This removes the need for brokers or middlemen and ensures transparency and effective management of transactional data.

Healthcare

Blockchain can play a significant role in the healthcare sector by increasing the privacy, security, and interoperability of healthcare data. It can meet many inter-challenges in the sector and enables the secure sharing of health data among various institutions and process people. This eliminates any third-party interference and also avoids overhead costs. With blockchain, healthcare records can store by encrypting them in a distributes database and implementing digital signatures to ensure confidentiality and authenticity.

Government

Blockchain technology holds the power to transform government operations and services. It can play an important role in addressing the challenges of data transactions in the government sector, which currently works in silo currency. Proper linking and sharing of data with blockchain enable better management of data across multiple departments. This improves transparency and provides a better way to monitor and audit transactions. Also, the blockchain is completely secure.

CPG and Retail

The full form of CPG is Consumer Packaged Goods. There is a huge opportunity to implement Blockchain technology in the retail sector. This includes everything from ensuring the authenticity of high-value goods, preventing fraudulent transactions, detecting stolen goods, enabling virtual warranties, managing loyalty points, and streamlining supply chain operations.

Travel and Hospitality

Applications of Blockchain can make fundamental changes in the travel and hospitality industry. And also can apply in money transactions, storing important documents like passport / other identity cards, reservation and travel insurance, loyalty, and rewards.
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