What is Blockchain?

Blockchain is a decentralized database that is shared with every individual and maintains a history of records via cryptographic hashes. In each block, data are stored in the form of a hash and contain a cryptographic hash from a previous block. One block is connected with another block and makes a chain and each block contains information from the previous block in the form of a hash. The first block which has no previous information is known as Genesis Block.

Satoshi Nakamoto 2009, created a Genesis block. A Genesis block is the base of all the blockchain sequences as sequence helps maintain the data effectively. All data are recorded in blocks regarding every transaction on the network. Thus, a block work as a ledger or a book of records. Once the record is stored, there is no option to be altered or removed.

Elements of Blockchain: 

1.  Decentralized Ledger: All individuals who are participating in the network have their own separate set of ledgers as  transactions are shared with every participant.

2.  Immutable Records: Every participant has separate data as it does not create clashes and no sort of intermediary that creates confusion in the minds of participants.

3.  Smart Contracts: A code created in the blockchain to verify and negotiate the contracts. An agreement is formulated as per the user’s requirement and imposed some sort of conditions accordingly.

If conditions are met then the agreement is carried out smoothly but if not met then it’s automatically canceled or eliminated as per the conditions. Thus, eliminating intermediaries who charge a large amount of fee and traditional processes. For eg: Landlord & Tenant, Supply chain, Insurance of individuals, etc.

Let’s discuss in detail to understand more:

Landlord & Tenant: A House of Rs. 25 lakhs on rent through the tenant and have a rent agreement with a landlord for 6 months, that agreement is done digitally. Some advanced payment is made by the tenant, If the tenant would pay the rent, then it automates the process and if not paid, then the transaction would be canceled.

Supply chain:  Buyer and seller have a contract with each other regarding the sale of goods from one country to another country with an agreed amount. Track the movement of goods from the source. From his production to consumption when it’s received by the buyer then the payments are automatically notified digitally.

Insurance of an individual:  Through code automatically determined the amount of policy, after that payment done by the policyholder.

Real state transaction:  A process of buying and selling real estate automated through contracts. Buyers receive the title of the property after the payment is transferred then those transactions are recorded on the blockchain.  

Decentralized Finance(Defi): Decentralized applications are those applications where payments are made without the need for centralized authority and abolished the intermediaries such as banks.

Voting systems: Smart contracts helps to create a transparent and secure system. A code has been programmed which helps to prevent the voters who are not eligible for voting and all the transaction of voting are recorded in the blockchain. It facilitates transparency and parent fraud in the voting process.

Eliminate the third party 

The foremast advantage of smart contracts on the contracts are executed by themselves, the transaction is done automatically and generates a code programmer. It eliminates the intermediaries or any third-party involvement. 

1.  Trust: Smart contracts are decentralized without a centralized authority. All the data is stored with participants who are in the network of blockchain.

2.  Speed: The elimination of intermediaries helps to execute the contract fast thus; the speed of contracts is faster and more efficient than before.

3.  Transparency: The data is monitored by all the participants who are involved in the contract. All data and transactions are stored once then it’s difficult to remove or alter.

It is a mixture of public and private blockchains; where not more than one organization is participating and provides access to the participants for auditing, writing, and Reading. No single authority holds the system and only a few participants have the ledger a/c and have access to the network.

How does Blockchain work?

Now, look at every business that has integrated with blockchain technology. why this should be in demand? Why blockchain is called the future of technology? So, let’s talk about this.
It’s a combination of technologies:

1.  Public Blockchain
2. Private Blockchain

Public Blockchain: It is run by government rules thus, every person would participate in the network of Blockchain without any restrictions.
Private Blockchain: A set of rules decided by the organization thus, only selected people are accessible to the network who take permission from the concerned person of the organization.

Some Technologies involved in Blockchain:

A transaction is through digital currency which is commonly known as cryptocurrency. When one individual transfers an amount to another individual, it should be in the form of cryptocurrency or any digital asset.

Moreover, an amount transferred then it should be stored in the form of blocks and blocks created with every additional participant. In a block, a block contains a list of transactions along with a hash that previously stored information carried out in another block thus, a brief procedure of blockchain.

1.   Electronic Key: Generally, these keys are called public and private keys. Public keys address those particular which are known in the network. Private keys are addressed to those particular which is not known by everyone or the secretarial information in the network and are only known to the owner.

Transactions are through a public and private key. First, a transaction from an individual is encrypted in the form of a hash through a private key. Moreover, that encrypted data attested with the digitally signed. Furthermore, if data is transferred to another individual by the public key, then data should be decrypted through the private key and receives the transaction which that individual knows.

2.   Blocks: In this Network all the data information is stored in the form of a block. Once the information is stored, it would not be altered, deleted, or destroyed. A block included all data information, hashes, and past recorded information.

3.   Distributed Ledger: Blockchain is also known as Distributed Ledger technology. As all data are distributed among participants who are in the blockchain network. 

In recent trends, Blockchain is used in various industries such as supply chains, manufacturing, Healthcare, Bitcoin-based, Retail, land Registration, verifying ownership, Rent agreements, etc.

In industries, blockchain helps to secure and safe transactions as it eliminates the intermediator thus, the transaction would become fast, less costly, and more transparent.

Blockchain Structured:

it’s a decentralized system in which blocks are interconnected with each other as participants grow in the network. Each block contains a Header, Previous block addresses, timestamp, nonce, and Merkel root. All blocks are carrying the previous block hash.
 

Conclusion:

Blockchain technology is also called the future of trends as it eliminates intermediaries. It’s a source of reliable information, secure & safe, and transparent in nature. Thus, all industries want to work in the Blockchain.

This technology is generally called a Decentralized ledger without the intervention of centralization. All the ledgers are distributed to the participants who are in the network. Blocks are interconnected with each other. Every block contains data information, hash, & previous hash of the data. The above article gives the whole information about the blockchain.