The Blockchain is the much talked about technology behind Bitcoin but it is not just limited to the Cryptocurrency. In the words of Don & Alex Tapscott, authors Blockchain Revolution, “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
How does it work?
The word Blockchain is made of two words ‘Block’ and ‘Chain’ where Block consists of the information which is stored digitally in the blocks and then pulled together in the form of chain. For instance, the block would contain the information such as the transaction done by the customer and product bought. The Block would consist of the information about who has done the transaction. However, the information would not include the name of the person who has done the transaction, rather it would include the Digital signature. Like this every block has various transactions and this information is in the form of ledger.
The interesting part is that the copy of the ledger is distributed among different volunteers who agree to keep the ledger with them and make sure that all the transactions recorded are valid. There is a whole process of validating the transaction known as Mining. These volunteers who cordially agree to give their time in validating the transactions are known as Miners. Also, every transaction on the Block has a unique code which is known as Hash. Information on the Block can easily be viewed by anyone but cannot be tampered with.
Why use Blockchain Technology?
Blockchain ensures security and transparency both at one time. Earlier we talked about Miners who validate the transactions and the process is called Mining. Now, the immediate question that originates is that how can we count on the Miners that they would remain true to the process. So, the idea is that whenever a miner validates a transaction, he earns some fees. It’s not just the monetary benefit that keeps the Miner going rather they also believe that they have a duty towards creating a safer environment of shared data and ensure transparency.
The utility of Blockchain is across the industries and it has something to offer to every industry. For instance, in Healthcare sector it would be possible for the companies and researchers to store the medical records securely. Once the record is generated, it would be duly signed by the Hospital authority and saved on Blockchain which ensures that the information then cannot be changed.
Next, we all know how cumbersome is the whole process of getting a property recorded is. Blockchain would save both the time and cost. Additionally, it would bring the efficiency and reduce the chances of errors. Once, the property deed is verified and stored on the Blockchain, it becomes the owner can be sure that the deed is correct as well as permanent. Overall, the Blockchain technology is just a decade old and a lot of sectors have already found the use-cases and benefits of using the technology.