Surely, you would have heard how blockchain technology is impacting various sectors and enabling the creation of cryptocurrencies and distributed ledger systems. Indeed, there is no doubt in saying that blockchain technology is a treasure box. However, the real potential of this technology hasn’t been utilized yet, which is the chief motive for every business’s endeavor.
Actually, the edge of technological advancement is bleeding. And we are standing on the verge of digital revolution. Technologies, which were considered as hugely complex to implement have become major interest of experts. They are eager to explore their potential. A similar thing has happened with Blockchain technology.
Yes! I am discussing this technology in this post. And I want to begin the tale of Blockchain from a very popular concept “Cryptography”. When developers were striving to find advancement in cryptography and decentralized computer network.
After twenty years of continuous struggle, they came up with Blockchain. But at that time it didn’t become popular, until the emergence of Bitcoin. The popularity of bitcoin brought the acknowledgement and appreciation for this technology and since that day, it is expanding its reach to various sectors.
After hearing all this, surely you would be eager to know what is this technology? Let me explain the whole concept.
What is Blockhain Technology?
Generally, people consider it as a “growing list of blocks”. The linked list are closely associated with this concept, however, evolutions are there. In the blockchain paradigm, a cryptographic hash links the blocks of data.
And! hash gets coupled with each other and creates a chain. Every block contains a cryptographic hash of the previous block, timestamp and transaction data.
The concept looks very simple, then why people call it complex?
Actually, this complexity is all about cryptographic hash, that secures the data, and inhibits the altering and modification of data. Basically, a hash is the value that consists of alphanumeric string. It is created by performing cryptographic principle on the information that blocks contain such as facts or details of the transactions. These blocks couple together retroactively and unrelenting.
This functioning makes data invadable, it means, no one can alter the data in blockchain after storing.
Surely, after reading this you would have understood that the data in blockchain is hard to alter. Let’s know more about this technology.
* Distributed Ledger System
The basic idea behind blockchain technology is a distributed system. Simply it is a distributed, shared and encrypted database that offers an incorruptible, invadable and irreversible repository of information. In this system, people from various domains can reach on a consensus and can control the occurrence of the particular transaction, and can maintain the originality of data.
Besides, the most relieving aspect is that there is no need for a central authority to verify the transaction. In short, now there is no need of middleman in economic and regulatory systems to accomplish the task of verifying transactions. It means, with the help of blockchain based systems people can transfer digital properties and data in secure, safe and immutable way.
* Smart Contracts
In the blockchain space, smart contract is very popular term. Haven’t you heard about it? Well! a smart contract is a set of logic rules embedded in blockchain, this allows you to exchange money, shares, property and more. These contracts execute autonomously, and govern the transactions. This system integrates transparency in transactions and makes the transactions conflict-free, as there is no need for middleman. Owing to the smart contracts, blockchain is autonomous agent that is tamperproof.
* Consensus Driven
Consensus driven model is the base of blockchain technology. In this system, a consensus model verifies each block independently. It is a set of rules for validating a block, and often utilizes various high-grade resources like computing, to cater the proofs of authenticity of information.
If you are not able to understand this, then I want to recall a very familiar term “bitcoin mining”. This process referred as mining in context of bitcoin. It integrates trust in blockchain system.
* Open Platform
Blockchain is an open platform, where every party can see the transactions. Along with that, it develops a system for provenance where you can track assets lifetime.
From above points, you would have understood how powerful is this technology. However, there is a lot more that this technology can do. Here are two major business applications of this technology.
Blockchain as a Marketplace
To generate value, every market requires a robust ecosystem. Blockchain is a huge marketplace, that not just allowing the creation of digital assets (cryptocurrencies) but also offers a payment infrastructure. Along with this, it offers as the proof-of-ownership structure in crypto economic marketplace.
It means now there is no need for any governing authority in peer-to-peer marketplaces, blockchain based platforms can match buyers and sellers and can allow them to make transactions using smart contracts.
This technology is being considered as next-generation online workforce in context of gig economy- an environment in which workers engage in jobs independently for short term, along with the shared economy. In such instances, systems based on blockchain can help in ensuring that there is no central authority, which maintains the workflow. Besides, it is easy to extend the flexible offering and payment interactions.
Blockchain as development platform
Currently, BaaS platforms( Blockchain as a Service) are available that allow developers to create prototype or test blockchain before deploying live. It means creation of blockchain applications and services is inexpensive with these platforms.
Microsoft’s Azure and IBM’s Cloud are perfect example of such distributed platforms, other examples are the platforms that allow sharing of data across industrial network via blockchain’s ledger such as Xage 3, and blockchain enabled technologies that allow verification of data transaction.
These all are BaaS solutions that make blockchain a stringent development platform. Along with this, these solutions form basis for ownership, identity, and programmable trust. Besides, they also facilitate the governance of enterprise and trust.
Apart from these, Blockchain technology is improving workflow of various industries including supply chain, transportation, healthcare, government, financial services and more. Innovators are exploring the ways to implement this technology and use it to disrupt and reshape the business models. Developers are striving to leverage the potential of this technology to achieve a variety of business goals.
Along with that, mobile app development companies are also striving to leverage the potential of this technology to deliver the next generation application, with high-grade security features.
At Techugo, we are also implementing this technology in various applications to provide our clientele with the solution that can aid them in achievinging their business goals. Our innovative and intuitive app developers are striving to find ways to ingrate this technology in a variety of applications. To secure a blockchain based application, get in touch with us.13