We are living in an era where any imagination can be brought to life with the help of technology. One of the most ingenious inventions of modern history stands in the form of blockchain technology. Many of us have heard of the blockchain word through its application in the field of cryptocurrency but are unaware of other prominent aspects of this revolutionary technology. There are Blockchain courses specially designed to help people comprehend this progressive technology. Let’s understand what it really is and how does it function.
Understanding the Blockchain Technology
If we go by the definition, the blockchain is a decentralized digital ledger that is spread among a network of people where everyone in the network has a copy of the ledger. Cryptography is used to link the blocks and every block contains a hash that is cryptographic in nature of the previous block, a recording of the time and data of the transaction made. The transactions recorded here is verifiable and permanent in nature, it can’t be altered later.
To simplify, the blockchain can be understood as digital information sets stored in public databases available to people in a given network. The blockchain stores transactions of value; it could be monetary or other economic transactions of high significance. Digitalization, transparency and Immutability are the three pillars of this technology that together makes it revolutionary in nature, eliminating the flaws of the traditional ledgers that used to contain valuable information.
Every block stores information regarding the transactions like date, time, value or amount, information about parties relevant to the transaction. Every block contains unique information and is given a unique code to distinguish them from other blocks in the chain. This unique code is termed as “Hash”.
How Does Blockchain Function
We have already established what blockchain is, all the new data recorded in a block is added to the existing chain of blocks. Since we know that the blockchain records transaction of value, let’s take an example of an e-commerce purchase to understand the functioning in context.
So let’s say you saw a discount on your favorite smartphone and you rushed on to the e-commerce store for the purchase. The transaction that happened is verified in public records in order to check later if things don’t fall into place or even for general proof. This process needs someone who can vet the entries from the new transaction. In the blockchain technology, this process of verification is left to the network of computers who vet the transaction and then record this entry into the digital ledger.
Information regarding the amount of transaction, the time of the transaction, digital signatures of parties involved, etc. are recorded in the block. The block contains other transactions during the same time, after successful verification of all the transactions in a block; it is given the unique hash code for identification.
Applications of Blockchain
One of the most significant applications of Blockchain technology continues to be in the form of cryptocurrencies that are transforming the financial industry and changing the way people transact and exchange things of value. It is also used in the field of asset management to process and settle the trade. Another application of the Blockchain technology that is very close to the finance industry is in the form of insurance claims processing, the insurance industry is using this technology to identify fraudulent claims and process the genuine claims faster
Smart property has opened a new venue for Blockchain application. Reducing the chances of theft of smart property Blockchain will play a crucial role in protecting the ownership of tangible goods of value. The supply chain industry is also the one that is benefitting from the use of Blockchain technology, the technology adds value in this aspect through sensors that give an end to end visibility of the items in supply by providing information related to live location and the state of goods being supplied.
Other than this Blockchain has also found its way to the healthcare industry that uses smart contracts to store and secure personal health records. The health records can be stored on Blockchain with a private key that would limit the access of this information to a particular individual who has the key.
The blockchain technology is the future, it helps to remove the middlemen in the process who don’t add much value but are prone to corrupt the system. In the most basic sense, it’s a decentralized digital ledger that records information which can’t be altered at a later date. Blockchain has also opened a plethora of opportunities for people as it is being frequently adopted by organizations and has found its way in various industries including finance, healthcare, insurance, etc. Blockchain courses are designed to train professionals in this field. The blockchain courses help to build an in-depth understanding about the technology and its applications.