Blockchain means continuously expanding data and information. Records like bank records, personal records, professional records, etc. form a blockchain. These data are present in an arranged manner. Also, the data and information in the blockchain are public.
Blockchain technology is born from distributed systems and networks. It is transforming the internet due to its ever-growing and dynamic nature.
Blockchains can be implemented on a distributed database. This database allows you to share the data across the internet.
Now you may feel that such systems are not safe because of sharing, but it is not the case. This is because blockchains hold public data. Also, you cannot store in one place. Rather, it is taken care of by millions of hosts.
Since the information is public and one can verify it, hence, there is almost zero scope for hackers to misuse it for illegal purposes.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
– Don and Alex Tapscott
Characteristics of Blockchain
Blockchains store identical information which makes them robust. A single object cannot control the technology and it can fail at multiple points. Bitcoin, which uses this technology has not faced any problems or interruptions.
2. Error Free with Transparency
Public information is made transparent which blockchains can hold. Therefore, anyone can access it with or without authentication, depending upon its type.
These data are checked very frequently and its transactions are becoming user-friendly. Also, there is a system that automatically inspects the data and its transaction. Therefore such a system keeps the blockchain data free from errors.
Also, Transactions in Blockchain technology are easy and direct as compared to the internet.
3. Defining Blockchains as a Network
So, the network is the reason to represent blockchain as a new level of internet. Every node has an administrator who joins the network according to their wish. In return, these administrator is given a chance to win bitcoins.
4. Blockchains are based on Decentralization.
It uses Decentralized System. Here, a decentralized system means a system that is controlled by all its components instead of the entire system itself.
The main advantage of decentralization is the shifting of a load of managing the entire blockchain system. Hence, It is shifted from a single administrator to all the users who are using different parts of the system. As a result, this will give more security.
This also reduces the cost of running the system by paying a heavy amount to a single administrator to handle the blockchain system.
5. Enhanced Security
Each component of the blockchain system is taken care of by its user. As a result, safety is better because blockchain technology guides these users to take care of their data.
Since due to the system being decentralized, there is no single point of attack. Hence, it is very much difficult for hackers to take over the entire system.
Blockchain system uses encryption instead of log in using username and password. It is a way to change information into its other form which nobody can understand.
Also, encryption uses a pair of keys known as the public and private keys. The public key is visible to everybody while the private key is not visible. Keys are the means to encode and decode the information.
Benefits of Blockchain Technology
1. Improvement in Tracing.
Tracing is necessary especially for industries having machines, tools, vehicles, etc. Blockchains will help to show the process of transportation which happened. It gives information about the place from where the goods are transferred and where goods are received.
Also, it will help the industry to know whether the exchange of goods is done properly or not. This will avoid any fraud cases.
2. Improvement in working speed.
Blockchains will replace the manual paperwork which requires a lot of work. This includes storing the papers, signing them, transferring them from one place to another. This increases workload as you need to hire a third person to validate all these papers.
This is eliminated by making all these papers digitally available. As a result, one needs to authenticate itself and access required papers. You can do this by sitting in one place. Also, you can easily transfer the papers by uploading and downloading them.
3. Reducing expenditure
Blockchain reduces or eliminates expenditure by removing third persons or agents to handle the papers. Instead, it gives all guidelines and information related to papers online. Users can directly study it and understand the procedure.
Also since these third persons or agents do not work for free, therefore you need to pay for them. Removing them will save you money.
You can trust Blockchain technologies, unlike agents. Because there are various agents who are fraud. Hence, they can fool you and make you pay a large amount of money. Blockchain is not like this. It will give you correct information which you can trust and go ahead.
Examples of Blockchains
1. SimplyVital Health
SimplyVital builds blockchain products to give healthcare facilities. It checks the health of the patient even after getting released from the hospital. Also, it uses machine learning to make the information of patients more accurate.
The information of the patient is real-time which changes after some time period. Blockchain technology in the product helps to inspect the patient’s health. SimplyVital helps to consult with other healthcare experts.
ABRA uses Blockchain Technology to keep an eye on the money from different currencies. Also, it provides an android app that creates an e-wallet after signing up in the app. You can add money to this app through bank accounts, credit/debit cards, etc.
ABRA allows to exchange the of money to different currencies in a very simple manner. It is fast, flexible, portable, and safe. Further, you can completely control the investment carried out using this app.
Provenance provides a solution to make the business trust their goods. It gives them the right information on their supply chain. Provenance gives strength to the shoppers, retailers, and producers. Also, Provenance helps to keep track of the condition and location of products and materials.
Using blockchain builds a data system to safely store the information which can be inspected. The data can be connected with any physical goods. This can be done using labels, smart tags, websites, or apps.
Provenance can work on both online and offline methods.
OpenBazaar is an online market platform and open-source software to sell anything. It helps to create an online store to create new customers for selling. Also, there are no fees and restrictions to create a selling platform.
OpenBazaar uses networks to directly connect people in peer to peer manner. It distributes the data across the network. Since nobody has control over OpenBazaar, therefore it treats each user equally in the network.
Ubitquity is a platform for keeping the records of real estate. It tracks and records other properties. Ubitquity maintains transparency while carrying out its work. Also, it improves the speed and efficiency of searching for real estate. Hence, the system relies upon a secured blockchain platform.
It provides Software-as-a-Service (SaaS). SaaS means giving software to users who visit the website. For that, the entire software is installed on a web server so that users visiting the website can use its services.
The user who visits the website can register. After registration, it can provide details of a property that the user wishes to upload on the blockchain. The main aim of Ubiquity is to make property papers easily transfer from one client to another.
So, if blockchain technologies are made commercial with security, then it can make all the legal works easy to carry out by people.