Due to top-notch security and transparency, the popularity of cryptocurrency is increasing at an exponential rate. According to research by the World Economic Forum, 10% of the world’s GDP will be stored on Blockchain or technology related to it by 2025. Research is currently going on to explore the further potential of this technology. If we look at the present scenario, the global market of Blockchain was $708 million in 2017 and by 2024 the market will surpass the figure of $60.7 billion. This means it is probably something that everyone should know about. In this article, we will discuss what Blockchain technology is, why it was developed, the characters that make it unique, and how it could impact the world.
What is Blockchain technology?
You can consider Blockchain as a Google spreadsheet that anyone can access using the internet. Whenever data is recorded on that spreadsheet it becomes immutable; anyone can view it, but no one can alter it once it is recorded in the system. As a spreadsheet has rows and columns, likewise Blockchain has blocks, and each block contains data. So the information is recorded in the form of blocks. Each block is interconnected with each other and forms a chain that is known as Blockchain. Here the notable thing is: where the internet allows computers to exchange information, Blockchain allows computers to record information.
The objective behind the development of Blockchain
The objective behind the development of the Blockchain is to keep user’s data safe from any third party or powerful authorities. In more simple words, people currently rely on third party companies for the security of their data. Just take the example of the present banking system. Banks monitor a user’s transaction and record it in their database, but such a system is vulnerable and easy to hack. With this current system you have no idea what exactly is happening with your data and who is accessing it. This is where Blockchain comes in as a perfect solution. The whole system is developed to store and transfer data without any third party involvement, and that makes it secure and transparent.
How Blockchain technology works?
Without any fancy jargon, Blockchain technology records information in a specific way. The files are encrypted, known as ledger, where information is stored; thereby only certain people can read and save it on normal computers which are linked together over a network. The computers are called nodes or blocks that share their processing power, storage space, and bandwidth with one another. The series of connected blocks lets computers work together to share ledger with one another. In this way a chain is formed between two blocks, hence it is known as Blockchain.
The notable characteristics of the Blockchain technology
Consider a huge spreadsheet that contains a large amount of information like the value of a currency, files like PDFs or images, or even a historical list of different transactions. Whenever anyone wants to change or edit the information on one computer, then all of the information on the spreadsheet will be changed and saved automatically to all the other computers on that network.
It elevates the power of computers thereby any task completes efficiently.
Cryptographic hash function
Encrypted software is developed using complicated mathematical algorithms. A hash takes a message, scrambles it into a funny looking code and makes it virtually impossible to decipher without a signature or key.
As a security feature, once data is entered in the system no one can alter it without permission.
How can Blockchain technology change the world?
Eliminate the third party
Blockchain’s decentralized character eliminates a need for third party involvement. This technology enables companies to make payments securely direct to customers. This will make companies more self-sufficient, open up the possibility of internal financial departments, as well as making the retail experience more flexible and immediate.
Revolutionize the health sector
Blockchain technology will change the landscape of the health sector. This technology will enable healthcare service providers to manage their data securely and accurately. Besides, this technology will allow patients to have control over their sensitive information and consult about their problems with expert physicians directly.
Blockchain technology will prove helpful for the government to ensure transparency in their welfare scheme and establish good governance. Implementing Blockchain technology in highway projects, land distribution, and million dollar tender, the government can see what exactly is happening with what money.
Revolutionizing the supply chain
We know that the supply chain is a vast and complicated sector. There are so many entities involved in this sector that you have no idea what exactly is happening. Some transactions may get lost or be difficult to trace. In this scenario, Blockchain technology can help organizations improve their process and reduce transaction time. This technology can store the information with full accuracy and leaves no room for mistakes, and, if there is one, it would be easy to find, track and correct. Recently, retail giant Wal-Mart started using Blockchain technology to track and manage their products.
Without any doubt, there are endless possibilities for Blockchain technology. From banking and supply chains to health care, this technology has immense potential to change the landscape of our existing systems. However, Blockchain is now at an initial phase and plenty of research is going on to explore the further potential of this technology. In the future Blockchain will be a normal part of our lives like the internet.