Blockchain is a distributed database but its stored devices are not connected with a shared server. In block chain list of records are stored as blocks and they are linked by using cryptography.
Hence we can say that blockchain is a digital record and are used for recording transactions made with crypto currencies such as bitcoins .
If we add a new block it can be linked with the previous block with the help of cryptographic block generated from the previous block. By doing so the block is permanently recorded and it is not broken.
In blockchain previous transactions alteration is very difficult because all subsequent blocks also needs to be altered. We can say that block chain is a purest peer to peer database that is immutable.
Definition of Blockchain
It is an open distributed ledger that record transactions between two persons efficiently and in a verifiable and permanent way. Each transaction is secured with a digital signature that proves its authenticity. Every block contains a cryptographic hash of the previous block, a time stamp and transaction information.
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Technology used in Blockchain
Blockchain is a combination of multiple technologies:
Cryptographic keys are most important for sending and receiving data. In process a private key and a public address is used. While sending data private key is used to sign it and the end user verify it by using the public key. In block chain we use asymmetric cryptograpgy like ECC.
We can choose the network protocol as per our use. To form a peer to peer network two or more electronic devices are linked and resources are shared. A peer is called a node on a network. Peer to peer network is a crucial part of secure blockchain processing.
Distributed Ledger Technology:
A ledger is a collection of shared, replicated and synchronized data. Every data is geographically spread over various computing devices. Any transaction approval and permission in blockchain is handled by distributed networks.
Hashing is converting a data with variable length to a fixed length. It is an one way process. It acts as an verification of a transaction.
Purpose of Blockchain
- Block chain uses online ledger which is very secure.
- There is no third party interference.
- It used distributed ledger which is very transparent.
- It is a digital world offering many new tools and there are many centralized administrators.
- Since there is no third party guarantee cost is very low.
Blockchain in Cryptocurrency
The term blockchain is often used to refer to cryptocurrency. Cryptocurrency is a medium of exchange such as US dollars. It is just an application in the form of e-currency using block chain. It is not governed by any financial institution.
The main difference between blockchain and cryptocurrency is that, cryptocurrency is created and held electronically in forms such as virtual wallet.
It is decentralised and it is not governed by anyone whereas blockchain is an advanced record and it has all information related to cryptocurrency exchanges over a shared system.
You might think of Bitcoin and blockchain as two halves of a whole, but in reality, they are very distinct commodities.Olawale Daniel
Blockchain in Insurance
According to a recent survey more than 80% of insurance companies have adopted or planning to implement blockchain technology. The practical application in insurance technology is, with the help of blockchain medical records are encrypted and shared between hospitals and insurers. This helps in cutting duplicated records and lengthy claim processing.
Blockchain also helps in selling and servicing insurance better, faster and cheaper by improving fraud prevention, claim management, health insurance and reinsurance. It also helps to lower the price and provide better experience for customers.
Bitcoins and Cryptocurrency are the widely used blockchain technology.
There are many more examples using blockchain technology. We can say blockchain is revolutionizing in most of the industries.
- Based on blockchain cross gaming video games are developed for example B2Expand.
- Social Engagements such as match pool uses this technique.
- Retail products can be purchased and if there is any malfunction blockchain helps to access information regarding the product.
- Blockpoint simplifies the payment system and allows Mobile wallet, gift card and other point of scale functionality.
- Food industry Network from farmers to groceries is very complex and blockchain makes it easier by tracking down food borne illness challenging.
- Real estates also uses blockchain technology by allowing anyone anywhere in the country to invest in real estate.
Advantages and Disadvantages of Blockchain
- Greater Transparency
- Highly secure
- Easily traceable
- High efficiency and speed
- Low cost
- Zero percentage of fraud
- Extremely volatile
- More power consumption
- Can be a regulatory problem for financial institutions