What is Blockchain: Blockchain is an immutable shared electronic ledger built around P2P system. In a Blockchain, assets can be tangible (land, money) or intangible (art, music). Blockchain technology can be used to model real world assets. In a Blockchain, anytime data is added via a transactional process it turns into a block. This repeated process gives rise to the concept of blocks linked together known as "Blockchain". The Blockchain ledger is the single source of truth and it is shared by all network users.
Why Blockchain: Blockchain technology isn't an entirely new paradigm as ledger systems existed in old times for record keeping. One may ask, why is Blockchain suddenly popular? Even though Blockchain as a technology runs on an existing paradigm, it introduces some core distinguishable features that makes it fit in today world. Blockchain ledgers are immutable and can be accessed by authorized members of the network. This provides an auditble record of each transaction as you can track and trust any piece of data on the Blockchain.
Elements of Blockchain
A smart contract is a set of rules for a transaction encoded in a piece of code running on a Blockchain and executed automatically. The terms of agreement of a transaction are encoded as smart contracts, thus increasing speed of execution.
A shared ledger ensures everyone on the network have access to the ledger, and any information can not be tampered with at it is an append only system thus, eliminating duplicate records.
Whatever has been recorded on the Blockchain can not be change by anyone. If an error is recorded, a correct version of that data has to be recorded and both of them remains valid.
How It Works
Every transaction is recorded as a "block" of data.
Every block links the previous and next block of data.
The linking forms an irreversible block of chain called "Blockchain".
Benefits of Blockchain
Looking At Blockchain: In the last 5 years, Blockchain technology has changed more than expected. It is expected to change rapidly as we dive deeper into the century. This is true as more industries are starting to see and importance of this technology in their business process.
As a distributed ledger system, time wasted to compile and confirm truth behind different transactions is saved. Since Blockchain uses smart contracts, speed of transaction execution is also increased as these contracts are automated.
Since the ledger is the only single source of truth with consensus protocol, data transparency is ensured. This protects users from fraud as every transaction can be verified easily
In every process of sharing information, security is a major concern. The decentralized nature of Blockchain makes it fit for use in different business process as this itself makes it difficult to breach.
Types of Blockchain
It can be accessed by anyone and thus, it has low privacy and a weaker security. An example of this type of Blockchain is in cryptocurrencies like Bitcoin and Ethereum.
In this type of Blockchain, the administrator controls who can access the Blockchain network or perform any operation on it. it is popularly used un companies.
This type of Blockchain is similar to that of the public Blockchain. With permission Blockchain, restrictions is given to who can participate in a given transaction. It is used by businesses.
This type of Blockchain is used by different businesses together for inter/intra transactions where each business involved in a transaction share the responsibility of managing the Blockchain.
Sharing medical data
Tracking Music royalties
Supply chain and logistics monitoring
Personal identity security
Real estate processing platform
Original content creation