Originally developed for the bitcoin and digital currency, it has emerged as a new technology empowering internet. Blockchain technology is an indigenous creativity to create something bigger. It is a technology where each transaction is maintained in the ledger to ensure its integrity and authenticity. It is a type of dairy or spreadsheet which maintains records that is hard to forge. The technology in the Blockchain used is a database and each node on a Blockchain has access to the whole database. No one node or computer forge the information it contains. Every node in the database is able to validate the records in the Blockchain. It is decentralized as there is no one or several points of failure. There is no one point of failure that would bring down the Blockchain.
However, the nodes in this technology are logically centralized, as the entire Blockchain is a distributed network performing certain algorithms programmed into it. This technology allows information to be distributed rather than copy.
Blockchain works on three algorithms as listed:
1) Private key cryptography
2) Distributed network with a shared ledger
3) Incentivized service for the network’s transactions, record-keeping and security.
The main purpose is to create the secure and decentralized network and allows value exchange without any central authority or trust. The most discussed and used technology created using blockchain is Bitcoin. Bitcoin is a digital currency which has no value to itself but gains value as we agree to trade using them. To be able to perform the transactions in the blockchain you need a wallet, which allows you to exchange or transfer the bitcoins. The technology has crowded internet like anything with the increased rate of bitcoin usage.
Why Block Chain technology –
The traditional way of sending information is to send the documents to them and then wait for them to review it before the final approval. This is time taking as you need to wait for that person to review as it takes time in whole revision and you are even locked out as the other person is reviewing the document currently. You also could not make changes meanwhile in the document. This is how a transfer of funds happen as they lock window for short duration to complete the transaction. Hence, blockchain technology is distributed and immense as the documents remain shared is visible to all viewing that information.
- It is like the internet with inbuilt robustness.
- The technology is not controlled by any single identity.
- The blockchain is durable with the information that is transferred.
- This technology has no failure point.
- Transparency in the data flow between the parties.
- No missed data or information and record of every single transaction makes it robust and reliable.
- It has a self-auditing environment.
- Each group making transactions are known as groups, where the transaction has done cannot be corrupted.
- Solves the problem of manipulation.
The Blockchain technology is durable and robust which maintains the data integrity and authentication with no point of failure.