What is Blockchain?

We have all encountered ledgers in our lives. We have our own personal ledgers for keeping track of transactions. But when the number of transactions is huge and there are multiple versions of the transaction, there is bound to be a lot of problem.  Blockchain solves this problem by each ‘node’ having their own copy of the ledger and having no central authority. A ‘node’ can be another computer, laptop or another server. But ‘nodes’ make the whole network for the blockchain to work successfully. 

Blockchain is the distributed, shared ledger system with no central authority. In a Blockchain, each ‘node’ will have a copy of the ledger which is continously updated.

It should be noted that even though Bitcoin and Blockchain seem to be mentioned in the same breath, Bitcoin is entirely different from Blockchain. In fact, Bitcoin is a cryptocurrency based on Blockchain technology and has no other common feature with Blockchain.

The mortgage industry, the car auction network, the banking industry are all industries that are thought to be transformed by Blockchain.

So, what are its advantages?

1.It makes the system more efficient.

Buying a home is a lengthy process. The loan approval procedure is quite long.  The paperwork takes a long time to clear but by employing the blockchain technology , the time is reduced and one can own a home in a much more faster way. This shows that the Blockchain is much more time efficient and this in turn reduces the financial costs too.

2. It is more transparent
In the supply chain cycle, one does not know where a particular produce has come from. What if it could be tracked and we know where our apples came from? This could be actually be possible by means of Blockchain technology…

3. It is absolutely secure

Well, not absolutely :)…. but the Blockchain technology is much more secure than our normal centralized ledger system.

4. No central authority
The blockchain network is decentralized and and having no central governing authority is by far the best trait for a Blockchain.  By not having a central authority, there is no need of any hierarchical need to approve transactions.

Having seen what blockchain is, join me as I traverse more sub-topics on the same topic….