Know About What is BlockChain Technology? How Blockchain Works & Where Can Blockchain Be Used?
In today’s time, there will hardly be a person who has not heard about Bitcoin and Blockchain, especially the boom of Cryptocurrency has been seen in which virtual currency like Bitcoin, Ethereum (ETH), Litecoin (LTC), Cardano (ADA) is included. But as much as you must have heard about them and tried to get information, but Blockchain is a Complicated Concept and it is equally difficult to understand it. Today, through this article, we will try to explain to you what is Blockchain Technology and how it works, in very easy language.
We know that explaining blockchain technology is not an easy task, but as much as we have learned about blockchain, we will try our best to make this information easy for you to understand. Please do not skip the title of the article, because doing so may make it difficult for you to get information about Blockchain.
What is Blockchain Technology?
Blockchain technology is a digital ledger in which transactions are recorded. Transactions are added as a chain to a “block”, hence the term “blockchain”. Blockchain is also known for its decentralized nature – meaning that there is no single entity controlling the data on-chain. This means that people can decide what they want to do with their information and cannot be forced to do so by any third party or company. Blockchain reduces or eliminates the need for a third party intermediary such as a bank, credit card company, clearing house or government agency.
Blockchain was invented by Satoshi Nakamoto in 2008 as an open source technology for bitcoin. Bitcoin is a cryptocurrency that does not require a central authority or administrator to mediate transactions. Bitcoin’s use of blockchain technology has contributed greatly to solving many problems with traditional currencies such as inflation and fraud prevention.
Blockchain is essentially a decentralized database that can be accessed by all users simultaneously and cannot be tampered with as it is stored in millions of computers around the world. Under this, all types of transactions are recorded in blocks which are then added to a personal blockchain, or web-based ledger. This means that when someone initiates a transaction, they are called a “block” on the network. That block is sent to thousands of nodes in the network for verification before it is received. This process of verification is called Proof of Work.
Blockchain Technology Real Life Examples:
Imagine that you want to buy a property such as a plot or land, but the plot or land you are buying must have been bought by the owner of that plot from someone and it must have happened even further. Now if you are buying land, then you would like to get information about that land, how the transfer of land has happened during the last years.
If someone in the middle rigged the land notary and it gets registered on the online portal, then how will you know whether there is a scam in the land or there is any dispute. Therefore, in sectors like real estate, blockchain technology is being expanded rapidly so that no ground fraud can be done.
If all the old records are added using Blockchain technology then now it will be difficult to make changes in any notary and even if done one change will make that notary invalid so that error will be detected immediately.
Blockchain technology is being used in land deals by the states of Telangana and Andhra Pradesh in India.
Recently, CBSE has announced to use Blockchain Tech in all the board’s mark sheets and other documents.
How does Blockchain Technology work?
How blockchain works, let us understand it by the following points:-
- Your data is stored in blocks and each block contains your data, hash and hash of the previous block in encoded form.
- Hash is a kind of unique ID like your thumb impression, which is linked in the blockchain system in virtual mode.
- If you try to change the data in any block, then the hash of that block will change and you will have to make changes in the next block and follow the same process in all such blocks, and it will take a lot of time to complete this process. will take time Thus it is not possible to tamper with the data.
- It takes 10 minutes to convert or hash a block, but if the number of blocks is in the millions, then it can take more than 100 years.
- When we talk about bitcoin or cryptocurrency, with the help of blockchain, the transaction details are stored in the block. If a transaction takes place, then all the computers or miners in the network have to verify the transaction for which they receive the cryptocurrency as a reward.
What is the difference between Blockchain and Bitcoin?
Bitcoin is a cryptocurrency which is built on the basis of Block technology i.e. Blockchain is a technology using which data can be kept secure and the data can be of any type. Just like in bitcoin, the transaction details are stored in the block, so in the same land deal, other information is also stored along with the buyer and seller.
Where can blockchain be used?
Blockchain technology can be used in many ways:
- Blockchain technology is being used very rapidly in land transactions or real estate. Many states of India are now progressing on this technology and solution is being prepared with the help of Blockchain for land deals in collaboration with the IT Ministry.
- Old government documents, which are very important, can be kept safe and for a long time with the help of blockchain.
- Along with this, fraud can also be prevented with the help of blockchain, from fake marksheets to fake paper.
- Its use in cyber security is similar to Sanjeevani, through this many countries have tightened the security system of their banks. Now banks are also making full use of blockchain to increase their security and cyber crimes can be prevented very easily in future.
- It is being used by the artist to protect his art from piracy.
- It is also being used for business transactions as the charges charged by blockchain in finance transactions are much less than that of banks.
- Blockchain technology is being used very effectively in the security of medical data.
- Earning Profit Through Trading Blockchain Based Cryptocurrencies Like Bitcoin, Ethereum (ETH), Litecoin (LTC), Cardano (ADA).