A ‘blockchain’ is a particular type of data structure used in some distributed ledgers which stores and transmits data in packages called “blocks” that are connected to each other in a digital ‘chain’.Blockchains employ cryptographic and algorithmic methods to record and synchronize data across a network in an immutable manner. It is a virtual laser that connects all information from the first step of transaction to the very last one, thereby creating a chain of blocks of information. Like paper money and gold before it, bitcoin and ether allow parties to exchange value. Unlike their predecessors, they are digital and decentralized. For the first time in history, people can exchange value without intermediaries which translates to greater control of funds and lower fees. A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. This allows the participants to verify and audit transactions inexpensively. A blockchain database is managed autonomously using a peer-to-peer network. Blockchain is the future of online transactions.
Across global supply chains, financial services, healthcare, government and many other industries, innovators are exploring ways to use blockchain to disrupt and transform traditional business models.
How does it works?
• Blockchainis a network of computers that have same history of transactios.
• Transactions recorded as blocks on network held by multiple people at same time.
• Every ten minutes of transaction become one block.
• Database is not centralised.
• Each transaction is validated by each individual’s on the network
• Information in the block can’t be altered, creating a clear history of each transactions.
Advantages of using Blockchain technology –
• Once a transaction is completed over a blockchain, it can never be lapses.
• The entire history of an asset is available over a blockchain.
• Greater transparency – A transaction is only committed when all parties agree to a network verified transaction.
• Enhanced security – Blockchain technology eliminates problem of intermediaries of trust like bank, thereby facilitating the transfer of assets such as virtual currencies over the Internet securely. This concept can be extended to non-currency related areas.
• Information tamper-proof – Blockchain keeps a record of all transactions that take place across a peer-to-peer network and each ‘block’ is uniquely connected to the previous blocks via a digital signature which means that making a change to a record without disturbing the previous records in the chain is not possible, thus rendering the information tamper-proof.
• The blockchain holds the potential to disrupt any form of transaction that requires information to be trusted. This means that all intermediaries of trust, as they exist today, are exposed to being disrupted in some form with the arrival of blockchain technology. Thus it increases efficiency and speed and Reduces cost.
• Resilient – Blockchain is an interlinked and continuously expanding list of records stored securely across a number of interconnected systems. This makes blockchain technology resilient since the network has no single point of vulnerability.
• Code is built within a blockchain that computers/nodes execute based on a triggering event. Essentially, an ‘if this then that’ statement which can be auto-executed.
We can use Blockchain in various sectors like :
• Healthcare – This technology could make the healthcare more transparent by creating provenances for critical drugs, blood, organs, etc. In addition, by putting all medical licenses on a blockchain, fraudulent doctors can be prevented from practising.
• Education – Student records, faculty records and educational certificates can be maintained with the application of blockchain technology. Blockchain can also simplify certificate attestation and verification. It could even transform the manner in which the policy for educational inclusion is framed.
• Agriculture – Blockchain technology can be used to increase transparency, reduce complexity and cost in food-based value chains by enabling trustworthy provenance and traceability from farmer to consumer without the need of third party. Other possible applications include the use of blockchain technology to record and manage agricultural land records as well as agriculture insurance.
• Civil registration – The civil registration process can be simplified through the application of blockchain technology to create distributed citizen registration platforms and even register vital events such as births and deaths on a blockchain. This can help make citizen records tamper-proof, resilient, secure and private, thus providing wide-ranging benefits for a variety of stakeholders.
• Electricity – Using smart meters, a record of produced and consumed electricity for each user in the grid can be maintained on a blockchain with credits allocated to the user for surplus power supply and credits redeemed for power consumption. This essentially creates a transparent, hassle-free and efficient energy market.
Like that, we can use Blockchain in various sectors in order to increase efficiency, transparency, reduce cost and to achieve many more advantages.
The developed countries are more open to adopting cryptocurrencies than developing countries. In such developed countries Bitcoin is regarded as private money, money service businesses, financial service, means of payment, electronic service, decentralised virtual currency and so on.
In many developed countries
• Property dealers use in their business.
• Used in cloud hosting platform.
• Universities use it as educational information.
• Provides transparent platform to students, teachers and companies.
Blockchain technology in India
Some developing countries like India consider bitcoin, and other cryptocurrencies illegal because they are not issued and controlled by a government and can be involved in “dubious activities” such as money laundering, financing, tax evasion, illegal payments etc. There are several countries like India that consider implementing their cryptocurrencies. In India digital transaction prone to online fraud and cheating. And after demonstration which took place on 8th Nov, 2016, there is a surge in online fraud. So, government pushes for Blockchain technology because there are various advantages of digital transaction.
Advantages of digital transaction are:
(I) Time saving and cost effective
(III) Reduce errors
(IV) Less flow of cash
(V) Tax compliance
(VI) Removal of black economy
Despite this, government is planning to implement Blockchain technology in every sector by making it legal.
Blockchain technology should be used by every country in order to achieve development and progress in work because it increases transparency, efficiency, speed, reduces cost and it has many more advantages.