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What BlockChain really is?

Now a days the technology is improving day by day in an extremely drastic manner, so today we are gonna talk about the most interesting one which is into headlines since past few years.

Firstly, let’s talk about what “Blockchain” exactly is, so by definition we can say that ” It is a technology wherein the data is stored digitally in blocks which are secured using hash function”.

When did it practically came into picture?

The prototype of this technology was designed in 1991. But the actual implementation took place in 2009 when “Bitcoins” were launched. Initially, blockchain came into use as a technology behind ‘Bitcoin’.

How does Blockchain work?

Following are the steps which shows the process of blockchain:-

The initial step is collection of data ie; once the system is registered to the software then anyone whoever wants to store any data can add it. The adding of data by users is basically the collection of information to be stored in digitized manner.

Secondly, we have the verification of data which is nothing but knowing about what data will be stored .The third step basically is about “security” and “authenticity”. Once, the data is collected, it is been stored in a block which has a unique key which is known only to the aunthenticated user and the user also digitally signs the document so that privacy is taken care of.

Once the unique key is defined to the block it is then added to the other chain of blocks. As soon as the block is added to the chain, it is made public for people to check it out.

Major Advantages of Blockchain:-

The main component which plays a major role in the adaptability of any technology is its provision for “security”. Once a block is added to the chain it is difficult to edit or delete it. Second major advantage is “Accuracy” which helps in gaining the trust of people as the data which is to be stored needs to be accurate.

As we know that many a times in Banks we need to pay some extra amount for transaction, but in blockchain the transactions are free of cost as there is no third party involved and therefore no transaction fees. The most important part is the user’s privacy. Whenever the transactions are done no personal information of the user is revealed and only the public key is known to others.

Is it Secure from Attackers?

Since technologies are improving there is a lot of fear of hackers as they can breakdown into system and get all the secured information. For the sake of trust and to avoid attacks by hackers blockchain has come up with a test which the computers need to go through if they want to join the blockchain network. The test is known as “CONSENSUS MODEL” where the users are required to prove themselves before participating into the network.

Usage of Blockchain in Companies

The last one year has seen a lot of hype regarding cryptocurrencies from the media and investors. But now that the hype seems to be dying down, it is giving way to a more organic and natural growth of Blockchain Technology. And the users of cryptocurrency are no longer restricted to just financial sectors. From logistics to real estate and digital ID management, corporations around the world are making tremendous strides in the adoption of Blockchain Technology.

There are n number of companies who are adopting themselves to the use of blockchain. we will discuss about two main companies that is “FedEx” and “IBM”.

FedEx is one of the world’s biggest logistics management companies and handles billions of dollars year. It has now become the first big shipping giant to incorporate Blockchain Technology into their supply chain management. So far, they are using Blockchains to track high-value cargo and are soon planning to extend the functionality to almost all their shipments. In addition to that, they are also helping to develop the Blockchain based industry standards for supply chain logistics establishing themselves as pioneers in this field.

Next, let’s talk about IBM:

IBM is shaping up to be one of the giants in the cryptocurrency space by providing the backbone of Blockchain related services to businesses. Using the Hyperledger Blockchain creator tool, they can help the organisations to create their own distributed ledger and smart contract systems. They have already partnered with some businesses that deal with logistics to increase efficiency and lower costs for them. The partners include logistics giants like Walmart and banks like the Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, and the United Bank of Switzerland (UBS). With food logistics as in the case of Walmart, the goal is to make the supply chain more secure so that contamination can be reduced. While the banks have come to develop a Blockchain trade finance platform called Batavia.

Click here for further details to know more about other corporations making use of blockchain.

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