Blockchain technology

Blockchain Technology


What is Blockchain technology?

1. Blockchain is core technology on which virtual currencies VC or cryptocurrency is built.
2. A blockchain is a continuously growing list of records, called blocks.
3. These blocks are linked and secured using cryptography.

Note: To know more about Cryptocurrencies and Bitcoin, read below post.

How does this technology work ?
1. Every time new block is added when transaction is made. 
2. Each node (computer) involved in the network helps to maintain this record. 
3. Each Bitcoin transaction on the network can be traced on this Blockchain.
4. Anyone who joins the Bitcoin network can crosscheck this transactions and help maintain these blocks.
5. There is no centralized managing authority. It is decentralised ledger system.

Can the Bitcoin blockchain be hacked?
1. Bitcoin work based on cryptographic encryption for validating each transaction. 
2. For anyone to hack it would require cryptographic decryption which is not possible without considerable CPU power and energy. 
3. However, Bitcoins can be stolen from someone’s wallet and tracing these stolen Bitcoins can be harder.

Advantages of blockchain technology:
1. Cheaper than traditional accounting system
2. Eliminate repetitive confirmation steps
3. Decentralized technology
4. Unique security features and Difficult to temper or hack
5. Based on peer to peer working concept

Application of block chain technology:
1. In financial Infra like banking, stock exchanges, property transactions
2. Modernisation of Land Records
3. Various government service delivery function like smart grid management, decentralized ledger system
4. Entertainment sector for more creative games, movies etc
5. In Democracy: promote e-voting - for NRIs, migrants etc
6. For various documentation and job market: store documents/awards in more secure manner

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