Blockchain

What is Blockchain?

A blockchain is a distributed software network that functions both as a digital ledger and a mechanism enabling the secure transfer of assets without an intermediary.Today, there are many forms of blockchain technology. Some blockchains have been designed to meet the needs of a finite group of participants, where access to the network is restricted.

How Blockchain works?

One of the famous use of Blockchain is Bitcoin. The bitcoin is a cryptocurrency and is used to exchange digital assets online. Bitcoin uses cryptographic proof instead of third-party trust for two parties to execute transactions over the internet. Each transaction protects through digital signature.

Disadvantages of current transaction system:

• Cash can only be used in low amount transaction locally.
• Huge waiting time in the processing of transactions.
• Need to third party for verification and execution of Transaction make the process complex.
• If the Central Server like Banks is compromised, whole System is affected including the participants.
• Organization doing validation charge high process thus making the process expensive.

Blockchain builds trust through the following five attributes:

• Distributed : The distributed ledger is shared and updated with every incoming transaction among the nodes connected to the Blockchain. All this is done in real-time as there is no central server controlling the data.
• Secure : There is no unauthorized access to Blockchain made possible through Permissions and Cryptography.
• Transparent : Because every node or participant in Blockchain has a copy of the Blockchain data, they have access to all transaction data. They themselves can verify the identities without the need for mediators.
• Consensus-based : All relevant network participants must agree that a transaction is valid. This is achieved through the use of consensus algorithms.
• Flexible : Smart Contracts which are executed based on certain conditions can be written into the platform. Blockchain Network can evolve in pace with business processes.

Benefits of Blockchain Technology:

• Time-saving : No central Authority verification needed for settlements making the process faster and cheaper.
• Cost-saving : A Blockchain network reduces expenses in several ways. No need for third-party verification. Participants can share assets directly. Intermediaries are reduced. Transaction efforts are minimized as every participant has a copy of shared ledger.
• Tighter security : No one can temper with Blockchain Data as it shared among millions of Participant. The system is safe against cybercrimes and Fraud.

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