Since the launching of Bitcoin in 2008, Blockchain technology and cryptocurrency have been the buzzing words on the Internet. Despite their popularity, so many people still do not understand what they are about. Some mistake Bitcoin for blockchain, and cryptocurrency for cryptography. To get a better understanding of these concepts, starting from the basics which is “Blockchain Technology” is very important. In this article, you will learn about Blockchain Technology, its features and applications in the world today.
What is Blockchain Technology?
Hold on, let me explain.
A Blockchain is a public ledger like the ones you know and use to record information like class attendance etc but what makes Blockchain different from the public ledger you use and know is that it is digital, decentralized, distributed across different computers, and immutable. It is digital because it is not something you can touch physically.
Unlike the normal ledger you know that is managed and controlled by an individual or by a group of persons, Blockchain is not controlled by a single entity. That's why it's decentralized. Information is not hosted in one place, rather it is distributed across several computers all over the world.
Also, the records are linked together in an orderly manner and in such a way that you can't alter a record without subsequently altering previous records and the entire network. That is why it is immutable. Once something is recorded on the Blockchain, it can hardly be reversed. Information is stored in Blocks in a growing (chain) ⛓️ linked form. Block A is linked to B which is linked to another Block. The Block keeps growing in an orderly manner.
Features of Blockchain Technology
- Immutability
Immutability means something that cannot be changed. The blockchain is designed in a way that once a piece of information has been added, it’s impossible to change it. No one can erase or delete it.
- Decentralization
Decentralization occurs when authority is given to everyone, meaning everybody has an equal share of power. In blockchain technology, there’s no central node or intermediary that information goes through before entry. It’s reviewed simultaneously by everyone.
- Transparency
Transparency is one of the key features of blockchain because it’s kept secure by different nodes. Every information entry into the chain is visible to every node. Combining it with the immutability of the chain makes it a very secure network.
- Consensus Mechanism
The blockchain relies on consensus mechanisms to determine which information is stored on the network. The consensus is a set of rules agreed upon by nodes to achieve trust and transparency. Popular consensus mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Proof of History.
Where can blockchain technology be applied?
- Healthcare
Leveraging blockchain technology in healthcare can help improve healthcare services and treatments. It can effectively store medical records whilst maintaining the privacy of the patient and monitor the supply chain of drugs needed for the patient.
- Finance
This is the most popular use case of blockchain technology as it birthed the cryptocurrency we know today. The blockchain provides a basis for the digital transfer of value that doesn’t require financial institutions as middlemen.
- Supply Chain
Here, the technology can be used to track goods right from the area of production through to their wholesalers, retailers, and final consumers. It instills transparency and trust throughout the journey and also tracks where there might be some issues with the movement.
Conclusion
The industries mentioned above are just a few of the many industries to which Blockchain Technology can be applied. The Blockchain is still in its infancy stages, but research has shown that it is a cutting-edge technology that will solve problems for the human race. From Healthcare, Environment, and Finances to the Supply Chain, there’s so much valueue that the technology is bringing to the table.