Updated: 3 days ago
Blockchain is one of the most booming and discussed technology in the present-day scenario.
In this blog, we will be covering the basics of blockchain and its applications.
Blockchain is combination of two words block and chain, which means the chain of multiple blocks, where block stands for the number of transactions.
Blockchain records information in a way that makes it difficult and impossible to manipulate or hack this network. Blockchain is also used for tracking assets. Assets can be tangible like a car, house, land, etc or intangible like intellectual properties, patents, copyright, etc. Anything can be tracked and traded on a blockchain virtually. It reduces risk and cur costs.
Basically, it is a digital ledger of transactions that is duplicated and distributed across the entire network of the blockchain system.
Each transaction in a blockchain is recorded and added to every participant's ledger and this is known as Distributed Ledger Technology(DLT).
Distributed Ledger Technology(DLT)-
DLT has various features which defines it, these features are listed below-
It is programmable
In order to corrupt a blockchain, every block in the chain is needed to be changed across all of the distributed versions of the block, this means, that the more the block, the more secure will be the network. A block in the network contains data, nonce(number only used once) and hash.
A nonce is a whole number of 32-bit which generates randomly when a block is created and a hash is a 256-bit number that is permanently attached to the nonce, these two combinations can create 4 billion random values and in order to crack the whole network only one value of 4 billion combinations is valid and that is why blockchain is more secure because to hack the entire network all the blocks in the chain is needed to be changed.
How does Blockchain Works?
So we are describing the basic working of blockchain in three points,
Each transaction in the network is recorded as a block of data.
Each block is connected to one block before and after it. These blocks form a chain of data with any change in data like transfer of ownership, the blocks record time and sequence of transactions and block them in a way that the details of any transaction in the chain cannot be altered or insertion of any new block between two blocks.
These transactions are blocked in an irreversible chain and this chain is called a blockchain.
Blockchains are ideal for delivering information as it is fast, shared, and transparent(Every owner in the network can access and check on the changes in the chain).
Types of Blockchain
Public blockchain network
Private blockchain network
Permissioned blockchain and
Benefits and Applications-
There are multiple benefits of blockchain technology and a wide range of possible applications as well, some of the benefits are greater trust, greater security and efficiency.
The applications of blockchain include securing data on a network, NFTs, music royalties tracking, Real-time IoT operating systems and Personal identity security.
We still believe that there is always more to work on and in the case of blockchain, we will be seeing many more applications in the future as users are getting more aware of the benefits of blockchain and many tech giants are already working on making this tech handy.