“Internet” was the most innovative technology in 20th Century, invented in 1990 by Tim Berners Lee. Currently, many researchers enthusiastically say that the “Blockchain” technology, the decentralized “digital ledger” system is an important invention in 21st century and it is the future.
Blockchain became most popular after invented the first crypto currency Bitcon in 2009 by Satoshi Nakamoto – is a pseudonym. Blockchain changes the software model from centralize to decentralize with its unique rich features: trust, immutable and secured.
What is Blockchain?
Hope you agree with the above unknown quote and it exactly suite for blockchain technology. Once record pushed in Blockchain, that past record cannot be changed, edited or deleted. Only you can add a new record in Blockchain.
Blockchain is a globally shared database and a distributed digital ledger that allows transactions to occur without a middleman such as government, bank, Credit Card Company, finance company etc. In Blockchain serious of records (Blocks) are linked and stored in cryptography method. Chain of blocks are created and stored in decentralized network. These blocks are not stored in centralized server nor controlled by an individual, it stored in decentralized system. There is no central database in blockchain technology. No one or group of people has the power to change or tamper the data in block chain technology.
Blockchain is an extremely dynamic, fast growing and incredibly popular emerging technology in current market. Very soon Blockchain technology will replace most of the middlemen by automating business processes and the world will be running on Smart contracts. Blockchain technology can simplify, streamline, automate transactions and revolutionize many industries / sectors like Banking, Finance, Insurance, Logistics, Supply chain management, Medical & Healthcare, Government, Ecommerce, Media and Entertainment, Automotive sector and more.
How Blockchain works?
Blockchain is a distributed network and works in Peer to Peer Network with consensus mechanisms. The most popular consensus mechanisms are PoW (Proof of Work) and PoS (Proof of Stake). The other types of consensus mechanisms are Delegated Proof of Stake (DPoS), Proof of Importance (PoI), Multisignature/Byzantine Fault Tolerance (BFT), Federated Byzantine Agreement (FBA), Proof Of Capacity (POC), Proof Of Elapsed Time (POET) etc.
Bitcon uses PoW and Ethereum is going to use PoS (currently PoW) consensus mechanism to validate its transaction before add to the Blockchain network. Consensus mechanisms are most important in Blockchain in order to function correctly. Its responsibility is to make sure everyone use the same Blockchain network. Also it make sure that each node in the network are connected with each other and agree on the transactions before add to the Blockchain network.
In Blockchain technology data stored with previous block Hash (Cryptographic method). It makes hard for anyone to tamper the data in Blockchain network.
When Bitcoin was released in 2009, people did not know how to use it and where it can be implemented, except booking keeping transactions. After a decade a unique platform created on the Blockchain network, it is called Ethereum. Ethereum is the first Blockchain based platform implemented the concept of Smart Contract.