Blockchain Technology – A new Revolution

Blockchain Technology – A new Revolution

June 12, 2020 1 By Hamza Malik

Blockchain Technology – A new Revolution
Blockchain is a chain of data, records or information, stored in the form of blocks. Cryptography attaches these blocks. Every block has a cryptographic hash, timestamp, and a transaction data called Merkle tree. We cannot modify or change the data stored in the blocks. To alter the data of the block, you have to modify the data of all the blocks.

The system then notifies the change to the entire network, and the difference can only take place by the permission of the whole network. We cannot change the data stored in the blocks without notifying and getting permits from the network. This is the reason that it is one of the most secure networks in the world. Security is the main issue in this internet world. Check out how you can secure your data on the internet.

It is a very sophisticated technology. We can understand it at the primary level as the information stored in a large number of blocks and the blocks are attached, making a chain. Nowadays, cryptocurrency, industry, and economy are using blockchain technology.

History of Blockchain

Stuart Haber and W. Scott Stornetta first used the blockchain technology. They aimed to establish a system where the data could not be tampered with. A year later, they introduced a Merkle tree, which made the system efficient. We also call the Merkle tree as the Hash tree. In this tree, the leaves are cryptographic hashes of a data block.

Blockchain Technology
Photo Credit: Wall Street

The computer scientists named it after Ralph Markle. In 2008, it was first conceptualized by Satoshi Nakamoto. Nakamoto made it challenging to add a block in the chain. After further improvement, Nakamoto used blockchain as a critical component of Bitcoin in 2009. Blockchain made its place in the digital market via Bitcoin.

What is “Block”?

A block is the basic unit of the blockchain. It contains digital information. A block has three parts. The first part includes digital information like the date and the time of the transaction. The second part of the block stores information about the person who makes the transaction. The blocks store this information in the form of digital signs.

The third part of the block contains “hash.” A hash is the identity of the block. It is the code that distinguishes a block from the other block. The mixture is unique for each block, and we cannot change it for one block only. If you want to change the hash of one block, then you must change the hashes of other blocks of the entire network as well.

Working principle of a blockchain

Each block in the blockchain has its hash and the hash of the previous block. The hash has a specific digital value. The hash of the next block starts from where the hash of the last block ends. All the blocks of the blockchain adopt this function. Suppose we alter the data stored in a block, its hash changes. By doing so, the hash of the next block does not match the hash of the previous block. Thus, we cannot alter the data stored in the blocks. There is only one way to make a change in the blockchain.

For this purpose, we have to create a new block and acquire permission from the whole network. After getting a permit from the network, we can add the new block with the altered data to the end of the chain. We cannot remove the stable block from the chain. It will remain in its original position.

Application of the blockchain technology

We can use the blockchain technology in several fields of life. The banking sector can use this technology. The finance department can use this technology. It can use blockchain technology to store the data of the consumers. A Blockchain can also save the data of all the transactions. It has a vast application in the field of cryptocurrency.

Bitcoin is already using it. The medical field can use blockchain technology to store the data of the patients. By doing so, the data will remain safe. We can use it in voting to avoid rigging. Blockchain technology has many other applications as well.

Pros of the blockchain technology

The record in the blockchain is entirely secure, and nobody can temper it. Blockchain technology is more accurate than other systems because there is no human involvement. There is no involvement of the third party in the blockchain, so it reduces the cost as well. Blockchain technology makes transactions safe and private.

Cons of blockchain technology

Blockchain allows only a small number of transactions. Criminals can use it in illegal activities. Hackers can hack it if it has weak cybersecurity. It can cost a large amount of money if we associate the blockchain with the mining bitcoin.

Blockchain technology is sophisticated technology. But it has a large number of applications in every field of life. It is secure and efficient. Computer scientists and IT specialists consider it a revolution in digital technology.

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