An Introduction to Blockchain Technology
The emergence of blockchain technology is something that is changing the world of Information Technology considerably. The sole idea behind blockchain is to decentralise information. There will be no specific address where information will be stored rather will remain distributed across many servers and cloud computing devices.
This might sound a little confusing but can be very useful for modern-day operations. It records information related to transactions. It is a distributed database that anyone can access from anywhere but cannot remove anything ever recorded. Let us find out what it is in detail.
What is Blockchain Technology? How Does It Work?
Blockchain technology is a unique technology that enables us to decentralise information. It means it is a platform where we can find distributed sources of particular information stored. For instance, if you upload your monthly expense sheet in this technology, it will be distributed to different sources and will not be stored at a particular address.
Everyone can access it but no one will be able to change or delete it. Hence, it is a technology that can store information in a digital format in a non-specific address. The database remains distributed across the world in all the connected systems. One of the best examples we know in this modern world is cryptocurrency.
Cryptocurrencies maintain a decentralised record of all transactions. Anyone can access it but no one can change it. This is a remarkable invention in the world of information technology that guarantees the utmost security and fidelity of information. It is also used these days to generate trust between parties linked via any kind of business.
Technology of Blockchain
We have typical databases used for storing information. Only those who are designated can only access the information stored in the particular databases. It means we know where a conventional database is. Hence, currently, we are using a centralised database system for storing and retrieving information.
Blockchain, on the other hand, is a unique piece of technology. The structuring of data in this technology is entirely different from that of conventional database storage systems. A blockchain will collect information in groups called blocks. These blocks have designated storage capacities. When this capacity is filled, they are closed.
The closed blocks are then closed and correctly linked with the blocks that are previously filled forming a string of blocks. This string of blocks is called a chain. This is how a blockchain is formed. If new information is filled to form blocks again, they will be connected to the same chain if the information is related.
So, the prime difference between a blockchain and a database is that the former constructs blocks and forms a chain. The latter, on the contrary, forms tables to fill in information. Once a chain is formulated, an irreversible timeline is constructed for the data blocks and is stored in a decentralised manner. Every block contains a unique time stamp when added to a chain that cannot be tampered with.
The chain is then distributed into different servers and systems across the world. Once these ledgers are created, they become immutable and cannot be edited either. This is why blockchain technology is called distributed ledger technology (DLT).
Blockchain Technology and Its Uses
Use of Block Chain
We have already discussed and understood how blockchain can be secure and different from the conventional databases used these days. Let us find out where such secure distributed ledger technology can be used in the modern world.
Medical Data Security
One of the most sensitive data we generate in the modern world is medical data. It contains the name of patients, physiological conditions, family medical history, insurance information, etc. All such information is very sensitive. The best way to secure such data is by using blockchain technology. The data once blocked will become immutable and cannot be edited. The information will become transparent and cannot be tampered with.
NFT Marketplace
We have seen people investing in tangible things. These days, people are investing in digital assets such as videos, music, art, etc., by using non-fungible tokens (NFTs). This technology uses blockchain methods to encrypt and secure information.
Cryptocurrency
The blockchain is a technology used chiefly for tracking and transacting cryptocurrency. Cryptocurrency is a digital currency where transactions and records are maintained using a decentralised system such as blockchain technology.
Business Transactions
Any kind of business transaction related to tangible and intangible assets can be done using blockchain. It will become more secure and transparent for both parties involved in the transactions.
Data Sharing Security
As mentioned earlier, this technology is a decentralised platform to construct data in the form of blockchains and stored it in different addresses rather than in a single database. Once blocks are formed, data cannot be altered or tampered with. This is where businesses can use this unique technology to share information across multiple platforms without failing to meet the security requirements. How does blockchain technology help organizations when sharing data? This is how it can make data-sharing channels more secure.
This is all about blockchain and the technology behind it. You will be surprised to know that this technology was invented by a group of unknown people. They call themselves Satoshi Nakamoto but nobody actually knows their original identities. It was done when the first cryptocurrency Bitcoin surfaced a decade ago.
Since then, this technology has caught up with the world. It has become wildly popular for its exclusive data security and sharing features. The transparency of a decentralised data storage system can be exceptionally used in various business domains and industrial sectors. This is all about blockchain technology. There is a lot more to come in this field in the upcoming years.
