We usually come across several terminologies that are very famous among a section of people and we might be completely unaware of it. One such terminology is the Blockchain. Most of us would have a glimpse of this but might not have a clear idea of what it is. In this article we tried to give a basic idea of what this Blockchain is a simpler manner as much as possible. Let's have a peek into this.
What does "Blockchain" mean?
Blockchain is a technology that is a decentralized digital ledger that records the inception of a digital asset which is controlled by all those who are involved and not controlled by a single entity. It's not possible to make changes in a Blockchain (immutable) and this feature makes this as a pathbreaking technology. It is also referred to as Decentralized Ledger Technology (DLT).Blockchain is majorly useful in the fields of healthcare, commerce and cybersecurity. Using Blockchain we can achieve a decentralized security system.
Blockchain technology uses the concept of decentralization and cryptographic hashing.
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| Concepts used by Blockchain |
Let us look at a simple example to get an idea of how Blockchain works.
Most of us might have worked with Google Sheets. First one will create a Google sheet document and share the link to a set of people who he/she wants to work on it. Here, the person who created the document doesn't have any ownership or complete control over the document. All those who work on it have control over it.
Blockchain works in a similar manner with a change that once entered in it, we can't change it which makes it a secured environment. Blockchain is even more complicated than the above mentioned illustration but it works in a similar way as this.
Blockchain is pathbreaking technology in the sense that it provides good security, helps to reduce risks, helps to get rid of frauds and transparency.
Three important concepts of Blockchain
- Blockchain is used in money transfers. It is one of the cheaper and faster ways of transferring money
- The most common application of blockchain is cryptocurrencies. Cryptocurrencies are digital currencies which uses blockchain for enhanced security system and act as a public ledger inorder to keep a record of all sort of transactions. Bitcoin, Litecoin and Ethereum are some of the popular cryptocurrencies. Unlike individual currencies cryptocurrencies can be used in any part of the world. The improved security offered by blockchain technology in crypto reduces the possibility of theft.
- Blockchain technology can be used to record real estate transactions which reduce paperwork, speed up transactions and save money.
- Blockchain technology is extremely useful in voting which make sure that noone votes twice and allow only eligible voters to vote. Voting through Blockchain is simple and cheap.
- Apart from these, there are numerous applications in Blockchain technology.
- These are some concepts that will give a basic on Blockchain technology.
- Hope this is an informative article. We will strive to give quality content through this platform.
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