Blockchain is a modern and new generation technology that has revolutionised business environments the world over. It does away with all intermediaries required in conventional systems for record keeping while greatly simplifying the process. The strength of Blockchain lies in its properties – it is reliable, safe from forging, fast and efficient, transparent and does not require any trust to be established between parties. Most crucially, it is immutable, and once any information or data is locked in, it cannot be changed, making Blockchain entirely safe and secure.
The origins of Blockchain
The origins of Blockchain can be traced back to 2008 when Satoshi Nakamoto released a paper Bitcoin: A Peer-to-Peer Electronic Cash System that described “peer-to-peer electronic cash” called the Bitcoin. Blockchain became the foundation for Bitcoin as it promoted digital trust by recording important information in a public space without allowing anybody to tamper with the records or remove it. Starting from a form of establishing an electronic currency, Blockchain has now become one of the ground-breaking technologies that have impacted almost every industry, from manufacturing to retail, from finance to educational institutions.
The evolution of Blockchain
It was around 2014 only that people started to realise that apart from cryptocurrency, there was huge potential in Blockchain in other areas too. Being an open-ended decentralised ledger, it could record transaction between two parties permanently without the need for third-party authentication. This creates a fool-proof process and one that dramatically reduces the costs of operations.
Soon, there was a massive surge in investments in this technology. Blockchain began to be used in supply chain management, insurance, transportation, healthcare, voting and contract management. In the financial sector, almost 15% of institutions base transactions on Blockchain. Even marketers are not left behind. Digital marketing agencies like Blockchain Australia and others from around the world are today offering highly optimised marketing strategies based on this technology.
The working of Blockchain technology
The Blockchain structure has three core segments.
The Nature of Blockchain
A Blockchain is a distributed, decentralised public digital ledger that is used to record transactions across many computers. This ensures that no single entry can be changed or modified retroactively without altering all subsequent blocks. Since the data is stored across its extensive peer-to-peer network, all risks related to centralisation is eliminated in Blockchain. There is no single point of vulnerability that can be exploited by unscrupulous hackers and computer crackers.
Apart from the robust security of a decentralised public ledger network, Blockchain has additional safety measures like public key cryptography. A public key is a long random string of numbers as an address on the Blockchain. Value tokens sent across the network belong to specific addresses. A private key, on the other hand, is like a password an owner uses to access personal digital assets. Hence, data stored on Blockchain is considered to be incorruptible.
Advantages of decentralised Blockchain
This is an overview of Blockchain technology in a nutshell.