WHAT IS BLOCKCHAIN TECHNOLOGY ALL ABOUT ? YOU NEED TO KNOW
What is Blockchain Technology ? Blockchain is commonly known as the distributed ledger that works with cryptocurrencies and makes peer-to-peer transactions with massive benefits for the users. Each data of the Blockchain is stored in blocks, thus the name “Blockchain”. This technology has influenced many industrial sectors of business with its competent features. The Blockchain devises a state of consensus that checks in itself.
Some of the basic features of the Blockchain network are transparency that by definition is public. It has no way to corruption as an enormous amount of computing power is required to make a single modification on the Blockchain. On the whole, the Blockchain technology is an embedded network of blocks.
TYPES OF BLOCKCHAIN
Blockchain is used for different purposes for various industrial sectors. In healthcare, Blockchain is used as Healthcare Chain Personalized Blockchain, and in finance it is used to make monetary and other transactions easy and quick and much more. Blockchains are basically divided into two main sectors, which again bring further divisions.
The Public Blockchains are opened to the public for participation. Any individual is free to partake in the network. Users, however, may or may not be compensated for their participation. These ledgers are decentralized and open-source, however, they are highly secured at the same time with the advanced cryptocurrency and consensus protocols.
The users of the public Blockchain will maintain a copy of the ledger and make use a distributed consensus mechanism in writing the data or block in the public Blockchain. Such Blockchains are also known as permission-less ledger. There are innumerable public Blockchains. Bitcoin and Ethereum were the first to be used in the Blockchain Technology. It allows anyone to build smart contracts and decentralized applications on the same.
A private Blockchain is different from the public Blockchain as the name suggests, the permissions to write data onto the Blockchain are controlled by an organization that is highly secured and reliable. This organization may not provide the option of allowing users to read the data. Moreover, public readability of the Private Blockchain may be unnecessary in most of the cases.
In some cases, the public might audit the data with the requisition of the particular organization. The private Blockchain, provides a greater level of privacy to the users and a restriction to read the ledger, unlike the Public Blockchain. In the private Blockchain, the transactions are quick, as they are easily verified. Moreover, the private Blockchain is not immutable and rectifications can be made by human intervention and easily approved by the users as they depend on organization in control of the Blockchain.
THE BENEFITS OF BLOCKCHAIN FOR BUSINESS
The Blockchain is most commonly known as the underlying technology developed for Bitcoin, a cryptocurrency. To validate transactions Blockchain uses a peer-to-peer network. It is basically a data structure with a distributed ledger of transactions shared between computers. Transactions can be verified and made by users without a central consultant. Hence, Blockchain is a decentralized and Users are free to make any number of transactions without a centralized authority. Blockchain makes business simple and secure for many entrepreneurs and makes transactions more rapidly without any additional fees attached. These transactions cannot be contested and therefore avoids complexities.
Blockchain is prominently known for its robust technology in which its blocks contain information chronologically synchronized. These blocks are decentralized therefore the security for Blockchain is well guaranteed. Blockchain has another property of being transparent. If there is any change to be made in the Blockchain, it becomes complex as a large amount of computing control will be needed to make those changes. Blockchain is the latest technology that is most presently immutable and reliable.