Everyone is scared to read about Blockchain due to its large presence worldwide. Most of us scroll off the topic as it looks more tech oriented & cannot be understand easily. But here, I have tried to summarize the concept smartly & easily for all my audience.
Blockchain is a chain of blocks where the digital information (the block) is stored in a public database (the chain).
Prima facie, we think it’s a new technology but no! Blockchain was first sketched in 1991 by two researchers Stuart and W. Scott, who wanted to create a technology where documents could not be tampered. Now, why it got famous ? because of it’s application/most usage in : Bitcoin.
We know that Bitcoin trades on a secured network (blockchain) by techies which cannot be hacked.
A blockchain consists of multiple blocks strung together. The aim is allowing to record and distribute digital information over a network (decentralized but trusted). That part of network, called as “nodes” that validates the data.
We have to remember all the below mentioned terms (by taking an example of shopping) as these will be quoted while you start reading Blockchain related news :
Block ~ When you make a transaction online, each and every detail related with the transaction i.e. the date, time, the amount, everything is stored in a block.
Chain ~ Each block refers to the previous block and forms a chain.
Nodes ~ Part of the network, which validates the data.
Hash ~ This information is encrypted and stored as a unique string of numbers and letters that called as hash.
Each transaction is entered in the order they occurred and each hash generated depends not only on the transaction, but the hash from the previous transaction as well.
The nodes inspect the hash to validate the transaction and once majority of nodes approve it, a block is generated.
Do you remember those days when we transfer funds from one bank account to another & it takes some days in execution because of the long validation process in banks ? Also, that time all the information was centralized & good to hack. Well, to resolve all the cumbersome actions, we need something more secured, fast & furious at a low cost (which is the main aim of the blockchain).
With the scope of blockchain being able to adapt to many changes, it can cater to many industries. If global Investment banks (top 5) starts thinking on deploying, then it can be possible everywhere easily.
Per article published by Forbes recently, it will be worth adding those heeded points here :
- Companies are working on developing blockchain technologies for cryptography ( where individual info can be stored)
- Let’s take an example of Aadhar data base in India & Real ID in US — both of them have been hacked once (reason centralized data base).
- It’s every country’s government call to maintain the database for blockchain as it can’t be stored with that company who is developing the technology.
- To get this onboarded, government has to take ownership by giving minority access to database who were involved in evolving the technology.
Answer to a question of “why hackers will face difficulty in hacking blockchain” ? For every individual, a wallet will be created & hacker cannot hack millions of encrypted wallets.
So far this was it but in the next part, I will be covering the blockchain technology with Internet of things (IoT) with advantages & disadvantages of it.
By any chance, if you like this topic & understand the importance as well as presence in the world, please stay tuned with me. I have my aim to learn most of the every latest topic & present in a summarized way in front of you for better understanding in yourself also.
Be Classy as always
Jatin Mehta (√ame)
BlockChain → Á Mystêry was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.