We are now in the era of digitalization where almost everything is done online. From ordering food to booking tickets and even shopping, we can do all these things with just a few clicks on our smartphones. With the advancement of technology, we are now seeing a new trend in the way we conduct transactions — Blockchain.

❖ Introduction to Blockchain

Blockchain works by creating a digital record of transactions that are then verified and stored on a decentralized network. This network is made up of computers, known as nodes, that work together to validate and store the data. When a transaction is made, it is first verified by the nodes and then added to the blockchain. Once it is added, it cannot be altered or removed. This makes blockchain an incredibly secure and transparent way of conducting transactions.

Blockchain is a powerful technology that makes digital assets exchangeable and indestructible. Cryptography makes it secure and immutable

Blockchain technology is a way to spread large amounts of information in a decentralized manner. With no central control or user as the owner, everyone comes together for updates and access. Changes to the document are recorded, making any alterations entirely transparent. Blockchain is advanced, but the analogy to a Google Document illustrates three key concepts of technology. Blockchain can reduce the risk of mistakes and fraud in systems as it has a high level of transparency. Blockchain is able to scale this transparent management process across numerous uses.

Blockchain is made of three types of players: blocks, nodes, and miners.

How blocks can be used to create anything you want?

Every chain consists of multiple blocks and each block has three basic elements:

1)The data in the block.

A 32-bit whole number is called a nonce. The nonce is randomly generated when a block is created, which in return generates a block header hash. The first block of a blockchain has a nonce that creates the hash. Any changes to a block would require the owner of this block to mine it again, which alters the data forever.

2)The Mining Process Explained

On the blockchain, every block references its own unique nonce and hash, but also contains the hash of the previous block in the chain. This makes it difficult to mine a block unless one happens to be “lucky”.

Miners use software that solves a very complex math problem to find anything called a nonce. When they find it, their block will be added to the blockchain. Blockchain technology is difficult to manipulate because any change will require lots of computing power.When a block is successfully mined, the change is accepted by all of the nodes on the network and the miner is rewarded financially.

3)Nodes

The most important concept in blockchain technology is decentralization. No single entity can own it since there is no central point at which transactions are conducted and data is stored. Blockchain’s nodes consist of any electronic devices that maintain copies of the ledger, and keeps the network functioning.Every node in the blockchain network has their own copy of the ledger and each new block must be algorithmically approved to be added to it. Blockchain technology is transparent, so anyone can view records. Every participant’s transaction data is registered in a unique alphanumeric number called a blockchain ID. The blockchain helps keep a system of checks and balances and creates trust among users. It allows for the scalability of trust through technology.

What are smart contracts?

This distributed ledger technology is programmable, eg. Smart Contracts

Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract. They can be used to automate many types of transactions, including financial contracts, supply chain management contracts, and even real estate contracts. Smart contracts are stored on a blockchain, which is a distributed database that allows for secure, transparent, and tamper-proof transactions. For example, a smart contract could be used to automatically issue a refund if a product is not delivered on time. Smart contracts can also be used to make sure that two parties agree on the terms of a contract before any money changes hands. This can help to reduce the risk of fraud.

But, what is the use of blockchain?

Blockchain’s most well-known use (and maybe most controversial) is in cryptocurrencies.A cryptocurrency can be used as a digital form of cash and can be used to buy goods and services, much like a traditional currency. One difference between cryptocurrencies and traditional currencies is that since cryptocurrency relies on blockchain protocols, it is able to ensure online transactions are always recorded and secured.

As of date, there are roughly 6,700 cryptocurrencies in the world with a total market cap of $1.6 trillion. Bitcoin has a majority of the value and is worth $60,000 for one unit. There are many reasons for this sudden surge in popularity including:

● Cryptocurrency is hard to steal because each one has a unique, identifiable code that is linked to one owner.

● Blockchain transactions can be sent to anyone and everywhere in the world, without needing a currency exchange or interference from the central banks.

Speculators are driving up the price of cryptocurrencies and speculators can guarantee some people who invested early on in the crypto game become billionaires. This might not be a good thing since speculators are not concerned with the long-term benefits that come from investing in crypto.More and more large corporations are coming around to the idea of a blockchain-based digital currency for payments.Tesla announced that they would invest $1.5 billion into Bitcoin and accept it as payment for their cars.Many governments have regulated crypto, but people continue to put money into crypto with zero regard for the stability or size of their investment. Bitcoin prices have fluctuated dramatically over the past few years.

❖ Application of Blockchain

Blockchain technology is often associated with Bitcoin and other cryptocurrencies, but the applications of blockchain extend far beyond cryptocurrency. In fact, blockchain has the potential to revolutionize a wide variety of industries, from banking and finance to healthcare and supply chain management.

Below are some examples of how blockchain is being used or could be used in the future:

Banking and finance: Blockchain can be used to streamline the process of transferring money between institutions. For example, Ripple is a company that uses blockchain to facilitate global payments.

Healthcare: Blockchain could be used to securely store medical records and make them accessible to authorized parties. This would improve patient care by giving doctors quick and easy access to important medical information.

Supply chain management: Blockchain can be used to track the movement of goods through a supply chain. This would allow businesses to identify issues and inefficiencies in their supply chains and make necessary improvements.

These are just a few examples of how blockchain could be used in different industries. It’s important to note that blockchain is still a relatively new technology, so its applications are constantly evolving. As more companies explore ways to use blockchain, new and innovative uses for the technology will likely be discovered.

❖ Research in Blockchain

In the past year, blockchain has seen a lot of growth. More and more businesses are beginning to adopt the technology in order to improve their operations. The most notable example is Microsoft, which has started using blockchain to create a digital identity network. This will allow users to securely log in to websites and apps without having to remember multiple passwords. Another company that is using blockchain is IBM, which is working on a project that will help farmers track their food products from farm to table. This will help ensure that the food is safe to eat and that it was produced ethically.

There have been several exciting developments in the world of blockchain recently. One is the launch of the Ethereum 2.0 network, which is designed to be more scalable and efficient than the current Ethereum network. Another is the development of new privacy-focused cryptocurrencies, such as Monero and Zcash. These coins offer increased anonymity for users and are beginning to gain traction among those who value privacy. Finally, there has been increasing interest in using blockchain technology for purposes beyond cryptocurrency, such as supply chain management and data storage. With so much happening in the space, it’s an exciting time to be involved in blockchain research!

❖ Future of Blockchain

There’s no doubt that blockchain technology is here to stay. With its ability to provide secure, transparent, and tamper-proof transactions, it’s poised to revolutionize the way we do business. But what does the future hold for blockchain?

Here are some predictions for the future of blockchain:

1. Blockchain will become more mainstream

As more businesses and industries begin to see the benefits of blockchain, it will become more mainstream. We’re already seeing this happen with the increasing number of businesses implementing blockchain technology.

2. More countries will adopt blockchain

So far, only a handful of countries have really embraced blockchain technology. But as more countries see the potential of blockchain, we’ll likely see more widespread adoption. This could lead to a new wave of innovation and growth in the global economy.

3. Blockchain will transform the way we interact with the internet

Blockchain has the potential to change the way we interact with the internet. By creating a decentralized internet, where data is stored on a distributed network, we could see greater security and privacy online. This would be a major shift from the current centralized model, where data is stored on servers controlled by a few entities.

To conclude, Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. The potential applications of blockchain technology are almost limitless. In the future, blockchain could potentially be used to streamline supply chains, create more efficient financial systems, reduce fraudulent activity and even help to protect the environment.

Mehul Aswar
A Technology Enthusiast
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