For all, you have probably heard about cryptocurrencies like Bitcoin and Ethereum and NFTs.They are powered by a technology called the blockchain. Some people may be sceptical of cryptocurrencies, but many experts believe that the real jewel of cryptocurrencies is the technology behind them “Blockchain”.Let’s start with some short and quick definitions, Blockchain is a list of transactions that anyone can view and verify. A cryptocurrency is a medium of exchange, such as the Indian Rupee, but is digital and uses encryption techniques to control and verify the transfer of funds. Simply think of it as digital money where there is no middleman like a bank.
What Is Blockchain Technology?
Blockchain is a record-keeping system in which each user holds a copy of the records, which can only be updated if all users involved in a transaction agree to update the records. It is ever-growing and highly secure. Blockchain is simply a digital ledger where everyone has the same copy of the data. An immutable append-only every growing chain of data.
So what does an immutable append-only chain of data mean?
Immutability is a property of Blockchain it means the inability to change or be changed.
Append-Only means that once data is added to the blockchain, it is almost impossible to change that data and can be considered practically immutable.
It is not impossible to change data but there has to be a legitimate reason and is updatable via consensus.
Why Blockchain?
Blockchain is the technology that helps to move information securely. Let’s take a closer look at the notable benefits of blockchain technology:
1. Decentralisation: This is a core concept and benefit of blockchain. The basic idea of decentralisation is to distribute control and authority from one central authority to the peripheries of an organisation. This increases efficiency and security.
2. Trust and Transparency: Blockchains are shared and everyone can see what is on the blockchain, this allows the system to be transparent. As a result, trust is established. Information is transparent to everyone -so everyone can verify and validate the information.
3. Highly secure: All blockchain transactions on a blockchain are secured by cryptography. Every participant has their private keys, these keys are assigned to the transactions as a digital signature. If the records have been tampered with, the signature becomes invalid and the network knows that something has happened.
Blockchain And Its Future:
Governments and Businesses around the world are slowly integrating this technology and have shown keen interest in further development of this technology. The Indian Government has released a national strategy on blockchain and how it can be used for development, the launch of the Indian digital rupee can be seen as a step forward. The blockchain is a platform that a huge range of applications can be built on top of. Think of it as when the internet was first released it was only limited to web pages, if you told someone at that time apps like youtube and Instagram are by-products of the internet they wouldn’t believe you. Blockchain has great potential to shape future technologies.
