BLOCKCHAIN is storming over. Know how?
    

     

    The Internet made its mark in the 1990s, so will Blockchain in the 2020s. If you are reading this then you are a few who are planning your way ahead. Blockchain is not a fad, after the arrival of IoT, it has exploded unimaginably. Here we shall discuss how it works with examples, its purpose, and revolutionizing modern industries.


What exactly is a Blockchain? Is it important?


 

  Remember the time when you can only transfer money through the bank, now, you can do it in a minute without going to the bank and not paying any excessive bank fees. People are investing in crypto these days but no bank handles crypto. So, are they really secure? You are keeping your money online with no ties to a bank. You are your own bank. But are you really worried that somebody will steal your money? If, so why do you keep it?... When you share a file in a google doc to a group, the file is getting distributed and anyone can get access to it, can make any changes, and is recorded in real-time.

   These are some simple examples of Blockchain. Of course, Blockchain can be very complicated. Now, 


What is Blockchain?

    A Blockchain is an immutable Distributed Ledger Technology (DLT). Or simply put, Files or data that are recorded cannot be altered or hacked and the recorded data are stored in computer networks of many places.

It uses decentralization and cryptographic hashing to make any digital asset's history unalterable and transparent.

How it works

The whole point of using a blockchain is to let people — in particular, people who don't trust one another — share valuable data in a secure, tamper-proof way.
            — MIT Technology Review

Blockchain consists of three important concepts: blocks, nodes, and miners.

Blocks

Every chain is made up of several blocks, each of which has three basic components: 

  • A block that contains data.
  • When a block is constructed, a nonce is generated at random, which then generates a block header hash. A nonce is a 32-bit whole number. Since the blockchain's inception, each node has kept a complete record of all data recorded on it...
  • Hash is a 256-bit, a number that is associated with the nonce. It must begin with many zeros (i.e., must be extremely small).

A nonce generates the cryptographic hash when the first block of a chain is formed. Unless it is mined, the data in the block is regarded as signed and irrevocably linked to the nonce and hash.

Miners

Mining is the process by which miners introduce new blocks to the chain.

Every block in a blockchain has its unique nonce and hash, but it also refers to the hash of the previous block in the chain, making mining a block difficult, particularly on big chains.

Miners utilize specialized software to solve the exceedingly difficult math issue of generating an acceptable hash using a nonce. Because the nonce is only 32 bits long and the hash is 256 bits long, there are around four billion nonce-hash combinations to mine before finding the proper one. Miners are considered to have discovered the "golden nonce" when this happens, and their block is added to the chain.

Making a change to any block earlier in the chain necessitates re-mining the affected block and all subsequent blocks. As a result, manipulating blockchain technology is incredibly difficult. Consider it "safety in arithmetic," because determining the golden nonce takes a long time and a lot of computational power.

When a block is successfully mined, all nodes in the network acknowledge the change, and the miner is compensated financially.

Nodes

Decentralization is one of the most essential concepts in blockchain technology. Any type of electronic equipment that saves copies of the blockchain and keeps the network running is referred to as a node. Every node has its own copy of the blockchain, and for the chain to be updated, trusted, and confirmed, the network must algorithmically approve any newly mined block. Every action in the ledger can be easily reviewed and examined since blockchains are transparent. A unique alphanumeric identification number is assigned to each participant, which is used to track their transactions.

The blockchain's integrity is maintained and users' trust is built by combining public data with a system of checks and balances. A unique alphanumeric identification number is assigned to each participant, which is used to track their transactions.

The blockchain's integrity is maintained and users' trust is built by combining public data with a system of checks and balances. Essentially, blockchains are the scalability of trust through technology... 

 

 

# Blockchain features

Distributed Ledger Technology

    The distributed ledger and its immutable record of transactions are accessible to all network participants. Transactions are only recorded once with this shared ledger, eliminating the duplication of effort that is common in traditional corporate networks.

Immutable Records

    After a transaction has been logged to the shared ledger, no participant can modify or tamper with it. If a mistake is found in a transaction record, a new transaction must be entered to correct the problem, and both transactions are then visible.

Smart contact

    A smart contract is a collection of rules that are kept on the blockchain and performed automatically to speed up transactions. A smart contract can specify requirements for corporate bond transfers and payment terms for travel insurance.

 

    Stuart Haber and W. Scott Stornetta first proposed blockchain technology in 1991, but it wasn't until over two decades later, with the launch of Bitcoin in January 2009, that blockchain saw its first real-world implementation.

As we now know, blocks on Bitcoin’s blockchain store data about monetary transactions. But it turns out that blockchain is actually a reliable way of storing data about other types of transactions, as well

Why is blockchain so important?

    Duplicate record keeping and third-party validations waste a lot of time in operations. Fraud and cyberattacks can make record-keeping systems susceptible. Data verification might be slowed by a lack of transparency. And, with the advent of the Internet of Things (IoT), transaction volumes have skyrocketed. All of this slows business and depletes the bottom line, indicating that we need to find a better solution. Then there's the blockchain easing all these limitations by providing;

  •    Greater thrust
  •    Greater security
  •    More efficiencies

#Some examples as to how Blockchain is revolutionizing industries

v Blockchain In Government Sector: Ensuring Safety of Public Records 

    The largest record of each individual is stored in their countries database and it is a perfect target of hackers. Using blockchain technology govt. can minimize cyber breaches in data. Examples

  • Reducing voter fraud
  • Storing public data
  • Storing federal govt. data

v Blockchain In Retail Industry: Eliminating Third-Party Interference

    Tapping into the Blockchain, companies are making more secure operations and attracting more buyers. It can be used to increase transaction transparency by giving customers all product facts, from the date of manufacture to the use cases. A reliable software development outsourcing business can be approached with the notion of creating a retail store that uses blockchain technology to safeguard each transaction and client information.

v Blockchain In Financial Service: Cutting Back Costs & Reducing Fees

    Blockchain, which functions as a ledger, can be used to record and store all financial transactions without exposing any one point of risk. The data would be stored in different locations, and each ledger would receive a copy of new transactions. Most banks have begun to use Blockchain technology.

It can also be used to speed up cross-border transactions, increase transaction transparency, and allow digital identity verification, in addition to securing them.

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