BLOCKCHAIN 101: EVERYTHING TO KNOW ABOUT

You must have heard the word "Blockchain" in recent times, be it, your workplace, your gym, your school, your home or just about anywhere. So you must be wondering what this Blockchain is? Well, don't worry we are here to explain it to you in simplest of ways.

In the simplest of terms, Blockchain can essentially be described as a data structure that holds transactional records all the while ensuring security, transparency, and decentralization.

One can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority. A blockchain is a distributed ledger that is completely open to any and everyone on the network. Once an information is stored on a blockchain, it is extremely difficult to change or alter it. Each transaction on a blockchain is secured with a digital signature that proves its authenticity. Due to the use of encryption and digital signatures, the data stored on the blockchain is tamper-proof and cannot be changed.

A blockchain is a distributed and shared database where the database storage devices are not all linked to a common processor. It is a list of growing records, called as blocks, which are connected and secured by cryptography. Every block is connected to the previous block and has a transaction data and timestamp. Blockchain is intrinsically resistant to data modification. It is a public, open, distributed and shared ledger that can record transactions between parties in a certifiable, efficient and permanent way. Blockchain is used as a distributed ledger and is managed by a P2P (peer-to-peer) network jointly sticking to a protocol for authenticating new blocks. And, once data is recorded in any block, it cannot be changed. To change the data, all the subsequent blocks have to be altered, which is not an easy task and can happen only with majority collusion.

"Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the Internet itself.”

-Abigail Johnson

History of Blockchain

The concept of blockchain came into existence in 2008 by a person or group under the pseudonym of Satoshi Nakamoto, and then introduced as the part of the digital Bitcoin currency for the first time in 2009. For all Bitcoin transactions, the blockchain acts as the public ledger. With the help of blockchain technology, Bitcoin became the first digital currency to solve the problem of double-spending, and that, too, without the use of a central server or an authoritative body.

How Does Blockchain Work?

Blockchain is comprised of blocks, each of which records some current transactions. These blocks permanently go into the blockchain, and new blocks are created as soon as old ones are completed. All these blocks are linked to one another in a sequential and linear manner, and each block has a hash of the previous block. The blockchain contains all the information, from the last block to the first-ever block. Once a transaction takes place, the information remains in the blockchain permanently. It cannot be copied or deleted, it can only be distributed. The technology is completely secure, as blocks can only be added with complex cryptography.

In a nutshell, here’s how blockchain allows transactions to take place:

1. A blockchain network makes use of public and private keys in order to form a digital signature ensuring security and consent.
2. Once the authentication is ensured through these keys, the need for authorization arises.
3. Blockchain allows participants of the network to perform mathematical verification and reach a consensus to agree on any particular value.
4. While making a transfer, the sender uses their private key and announces the transaction information over the network. A block is created containing information such as digital signature, timestamp, and the receiver’s public key.
5. This block of information is broadcasted through the network and the validation process starts.
6. Miners all over the network start solving the mathematical puzzle related to the transaction in order to process it. Solving this puzzle requires the miners to invest their computing power.
7. Upon solving the puzzle first, the miner receives rewards in the form of bitcoins. Such kind of problems is referred to as proof-of-work mathematical problems.
8. Once the majority of nodes in the network come to a consensus and agree to a common solution, the block is time stamped and added to the existing blockchain. This block can contain anything from money to data to messages.
9. After the new block is added to the chain, the existing copies of blockchain are updated for all the nodes on the network.Languages ​​that developers report using and want to continue using.

Why Blockchain ?

With the introduction of blockchain technology, people can trade directly with each other and do business without the involvement of intermediaries. Blockchain technology helps eliminate intermediaries by performing three important roles:

1. Record all transactions
2. Establish an identity
3. Establish a contract (usually a privilege of the financial services sector)
   
   

Blockchain technology, when implemented, has a very large market capitalization and can have widespread impact on the financial services sector. It will cause a cataclysm in the financial services market, but technology can significantly improve the efficiency of the financial services business.
Not only can the financial services sector benefit from blockchain technology, but other industries can also benefit tremendously. Besides Bitcoin, this technology can be used to store all kinds of digital data, including computer codes.
Part of the code can be programmed to perform the function when some parties enter the entry. This is nothing more than signing a contract. This code can also decrypt external data feeds. Everything that can be analyzed by a computer, such as news headlines, weather forecasts, stock prices, etc., can be used to create contracts that are automatically submitted when conditions are met. These are called smart contracts, which can open up exciting numbers of opportunities.

Future of Blockchain

At the end of 2021, the market capitalization of the world's cryptocurrencies reached $ 3 trillion. This is the best ever. Cryptocurrencies such as Bitcoin and Ethereum are backed by blockchain technology. The adoption of blockchain, and the technologies and products it supports, will continue to have a dramatic impact on business operations.
But blockchain technology is more than a system for securely transferring cryptocurrencies. Other than finance, it can be used in medical, insurance, voting, benefits, gambling, artist loyalty and other applications. Technology is already impacting business and society at many levels, and the global economy is preparing for the blockchain revolution. If the "revolution" sounds dramatic, think of eight of the world's top 10 companies building a range of products that incorporate blockchain.
Industries or organizations involved in the recording and monitoring of all types of transactions can benefit from migrating their operations to a blockchain-based platform. Blockchain will revolutionize all major sectors of the current century:

• Banking & Financial
• Automobiles
• Supply Chain
• Governemnt
• Entertainment & Gaming
• Telecom
• Insurance
• Healthcare
• Retail