What is blockchain? Bitcoin technology may be confusing in a way with the multitude of terms being thrown around today, like Hyperledger, Ethereum, and Bitcoin. All the technologies associated with bitcoin can be classified under the term blockchain. The blockchain is distributed, trustless and decentralized ledger technology and it was popularized by the bitcoin global cryptocurrency platform. Some of the basic facts and explanation of blockchain technology will be described in this write-up.
The components are:
• Data Layer
• Network layer
• Consensus layer
The blockchain technology is a system of distributed logic and data. It is a distributed database able to maintain a list of records. Each of the records is named as a block. Each of the blocks also contains the history of each block that ever came before. It is an incorruptible digital ledger of economic transactions programmable for recording both financial transactions and virtually everything of value. Blockchain technology is considered as the best invention since the internet was invented.
Blockchain transactions are recorded in the form of a complete set of blocks that are added in the chronological order in the form of a chain. Blockchain completely removes any need for centralized record repository and also permits the concerned individuals to view cryptocurrency easily. It is used for verification of transaction. An ineradicable record gets added to the blockchain anytime a new transaction occurs. It is impossible to hamper the record, which can also be authenticated by all the nodes contained in the chain. This differs from all other systems which work based on centralized authentication system.
Why use blockchain? Check the benefits and explanation of below
• Supply chain management: the blockchain technology offers several benefits to supply chain management, which include cost-effectiveness and traceability. Simply put, blockchain technology can be used in tracking the quantity, origin, and movement of goods.
• Quality assurance: The blockchain system is used in detecting irregularities in the supply chain. It eases the prices of execution and investigation in businesses.
• Accounting: It enables easy verification of records each time such a record is passed on from a blockchain node to another. A highly traceable audit trail is generated.
• Smart contracts: it removes contractual, time-consuming transaction bottlenecks that can impair the growth of a business.
• Voting: Blockchain can reduce the likelihood of fraud during an election; this is a very big issue in spite of the prevalence of several electoral voting systems.
Other benefits of the blockchain technology are:
• Stock exchange
• Energy supply
• Peer-to-peer global transactions