What is Blockchain Technology?
A Blockchain is an open, digitalized, distributed ledger that uses a data structure to record transactions between two parties efficiently and in a verifiable and permanent way. Blockchain Technology has created the backbone of a new type of internet by allowing users to manipulate the ledger in a secure way without any involvement of a third party. Originally called ‘blocks’ (a list of records) that are linked together in a chronological order and secured using the cryptography. Every block contains a hash pointer as a link to a previous block, a timestamp, and transaction data. The Blockchains contain the true information about the different user addresses and their transaction ever made in the system. The Blockchain is designed as immutable i.e. they can only be updated by consensus between the participants in the system, and cannot be deleted. Blockchains are potentially suitable for every successful new technology from an ambitious developer to an entrepreneur, basically suitable for protecting any kind of transaction that needs to be tamper-resistant.
How Does it Work?
Blockchain enables two disparate parties to agree that something is true without any need of the third party. Instead of writing records/entries onto a single sheet of paper, the Blockchain, as a peer to peer network combined with a distributed time-stamping database that takes the number of inputs and places them into a block. Every block is linked to one another forming a chain and secured by cryptography. This allows Blockchains to be used as an openly distributed ledger without any need of an administrator.
Which Industry Uses Blockchain?
Tech startups are getting attracted towards Blockchain technology with the goal of disrupting a variety of industries. Because of its democratization and decentralization features, This technology is not limited to the financial sector but is being put to a wide variety of uses in several industries. Shipping, Fintech, Healthcare is the common examples. For example, in shipping, a bill of lading for cargo transport requires a lot of paper-based records and multiple sign-offs creating a lengthy administrative process. To work efficiently and reduce the cumbersome process, the Maersk, the world’s largest container ship operator, is using a Blockchain-based ledger and digitized the supply chain.