What is Blockchain technology?

It is believed that this blockchain technology was discovered to support this cryptocurrency after the invention of bitcoin in 2008. It is such a modern technology without which it is impossible to transact with bitcoin or any other type of crypto-currency.

Blockchain technology is a combination of three different technologies, which include the Internet, personal 'key' cryptography (private key) i.e. keeping information secret and controlling protocols.

Secure chain cryptography was first discussed in 1991 by Stuart Haber and W. Scott Stornetta did the job. The following year, in 1992, Bayer joined hands with both of them and improved its design, which made the task of assembling the blocks easier.

Blockchain is a technology by which bitcoin and other crypto-currencies operate. In simple words, it is a digital 'public ledger', in which every transaction is recorded.

Once a transaction is recorded in the blockchain, it can neither be deleted nor modified.

Due to the blockchain, transactions do not require a trusted third party such as a bank.

It records the details of each transaction in a ledger after it is verified by network-connected devices (mainly chains of computers, called nodes).

There are three main reasons why we should know about Blockchain:

1. There is no need for Blockchain technology to exist publicly. It can also exist privately – where nodes will simply point into a single private network and the Blockchain will act as a distributed ledger.

Financial institutions are under a lot of pressure as they have to demonstrate regulatory compliance and hence many institutions are doing Blockchain implementations. Secure solutions such as Blockchain can become a huge and important building block to reduce compliance costs.

2. Block-chain technology has more reach than finance. It can be applied in any multi-step transaction where traceability and visibility is required. Supply chain is a notable case where Blockchain can be used to manage leverage and to audit sign contracts and product provenance.

Along with this, it can also be used in voting platforms, for titles and deed management. As the digital and physical worlds are converging, the practical applications of Blockchain are also increasing slowly.

3. The exponential and disruptive growth of Blockchain can only come when public and private Blockchains converge together in an ecosystem where firms, customers and suppliers can collaborate together in a secure, auditable and virtual way.

How Secure is Blockchain?

In this way, nothing on the internet is secure. On the other hand, if we talk about Blockchain technology, then it is "unbackable" to a great extent in comparison to the rest of the technology. To do any transaction in Blockchain, all the nodes of the entire network will have to agree, only then that transaction will be valid. Here no single entity can say whether the transaction has taken place or not.

To hack it, you will not have to hack only one system like a bank, but all the systems located in the whole network will have to be hacked, so hacking is not such an easy thing in this technology.

The computing resources of almost all blockchains are tremendous because there is not a single computer here, but there are many computers connected in the network.

Blockchain is such a mechanism that helps all of us to reach their highest degree of accountability. Now there will be no more missed transactions, human and machine errors will be reduced, no third party or government consent is necessary behind all these transactions, but only trust or secure validation of all connected nodes matters.

The most critical area where Blockchain helps us and it guarantees the validity of a transaction by recording them, this is not being done in just one main register but the registers of all the distributed systems connected in the network, in all these registers. Transaction will be called valid only after there is secure validation.

The main technology behind Blockchain are mainly the three technologies given below.

1. Private Key Cryptography

2. P2P Network (Peer-2-Peer)

3. Program (the blockchain's protocol)

Blockchain Technology in future :-

1. Smart contracts – Any industry, if it heavily depends on contracts, such as insurance, financial institutions, real estate, construction, entertainment, and law, all those industries will be benefitted from this technology. Because with the help of this technology all your contracts can be updated, managed, tracked and secured without any dispute. Smart contracts, those that are embedded with if/then statements and do not require the involvement of an intermediary party to execute.

2. Supply chain management – ​​Blockchain is a great option to manage all these processes whenever the value changes or the status of an asset changes.

3. Asset protection – Whether you are a musician who wants to get the royalties of your songs properly or you are a property owner, if you want to protect your assets then blockchain technology can help you a lot in your real-time By creating an indisputable record of ownership.

4. Personal Identification – Governments often manage a lot of data such as personal data from birth to death records, marriage certificates, passports and census data etc. Blockchain technology can easily manage all these data according to the streamlined solution and can store them securely.

5. Payment processing – The specialty of Blockchain is that it can easily handle the payment processing of any big company. This can completely eliminate the need for intermediaries that we often see in payment processing.

6. Crowdfunding – Compared to traditional crowdfunding, a blockchain powered crowdfunding campaign has a more secure investment from an interested community for a new project. But in such an instance, the funding will be mainly in the form of bitcoin or other cryptocurrencies.

• Blockchain helps our smart devices to communicate with each other so that they can communicate better.
• Blockchain solves the problem of manipulation. This brings everything to the level of their highest degree of accountability.
• Makes online identity and reputation decentralized. So that we can own our data ourselves.
• Cryptocurrencies distribute the ability to control the value of currencies from the hands of the government to the general public, so that now no one will have a hand over the value of currencies.
• In an informal economy, the blockchain protects us from the middleman so that the asset can be exchanged easily and freely.
• With the help of Blockchain technology, many issues related to freedom, jurisdiction, censorship, and regulation can be addressed correctly and smoothly.
• With blockchain-based systems, there is no need to keep any more intermediaries, but records and transfer of assets can be taken care of easily. Due to which the transaction speed increases.
• Data once entered in the blockchain become immutable, which can no longer be changed in any way, which reduces the chances of fraud to a great extent. Apart from this, the transactions are very clear which can be easily investigated and audited later.