Blockchain Technology - What you need to know

​In the world of technology, the invention of blockchain is touted to be as significant as the invention of the internet. It’s been herald as the next big thing across industries from finance to healthcare to even government operations. It could eventually change the way several industries conduct their daily business. So what is blockchain?

Blockchain - a brief explanation
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​The blockchain is a distributed database designed to facilitate transactions and keep track of assets. These records of assets are called blocks, and each encrypted block of code contains the history of every block that came before it with time-stamped transaction data down to the second. All these blocks are chained together hence the term ‘blockchain’.
It is the brainchild of a person or group of people known by the pseudonym, Satoshi Nakamoto. It was invented to introduce first ever successful cryptocurrency bitcoin- which is a decentralized digital currency that allows users to exchange money without the need for a third-party such as a bank or any other financial institute.  

How does Blockchain work?
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How blockchain works? (image source)

A blockchain is made up of two major components that are:

1. A decentralized network facilitating and verifying transactions.
2. The immutable ledger that network maintains.
   

It is possible for everyone in the network to see this shared transaction ledger, but there is no single point of failure from which records or digital assets can be hacked or corrupted. Because of that decentralized trust, it is not possible for any organization to control the data, be it a big bank or giants in the IT industry like Facebook or Google. 
The blockchain network automatically checks itself after every ten minutes. It is kind of like a self-auditing ecosystem of a digital value. The network reconciles every transaction that happens after ten-minute intervals. Each group of these transactions is referred to as a “block”. Two important properties result from this are transparency of the data and the data cannot be corrupted by altering any unit of information on the blockchain.

Why blockchain technology matters?
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​The blockchain has been termed as a revolutionary technology because it can work for almost any type of transaction that can be money, goods or property. It provides a mean of doing a trustworthy transaction in a world where cyber-crimes and online fraud are getting sophisticated with time. Not just that, blockchain technology enables a way to transfer power and control from central authorities and distribute them to the masses. The potential of using blockchain is limitless as it can be used for collecting taxes, online voting cloud computing land registration and more. Many organizations around the globe are already looking into the possibilities blockchain has to offer. In the UK alone, the government has started exploring how it could use the blockchain for public services.

Conclusion

​In all, the Blockchain can be regarded as a foundational technology, like TCP/IP, which enables the Internet. Back in the late nineties, nobody had an exact idea how the internet will evolve and take over our lives. Similarly, blockchain has a potential to evolve into everyday day aspect of our lives.

Other related articles on Blockchain:​​

• ​Why Blockchain is growing in popularity
• How Blockchain Based Smart Contracts Work in Today's Digital World
• Why blockchain tokens are a big deal
• Why Blockchain for Data Governance in the Pharmaceutical Industry
• How Blockchain Improves Government Processes and Procedures All Around the World