The buzz around Blockchain is sure to have reached your ears. There are all kinds of confusions and half-truths circulating about the technology. While some just equate it with the Bitcoin others stop at saying it is the underlying technology behind all cryptocurrencies. There are many who thinks Blockchain as a new technology to boost data security.
While all these have some partial truths to tell about Blockchain, none of them gives us a complete and comprehensive idea about what is Blockchain. In the length of this post, we are going to explain the definition, use cases and benefits of Blockchain briefly.
The blockchain is basically a decentralised transaction ledger in which information can only be added and never can be deleted or altered. Any information concerning the transaction or user access is automatically saved in blocks but the same information cannot be changed, edited, tweaked or deleted. This quality of protecting data with tamper-proof and deletion-proof ledger system is unique to Blockchain technology.
This technology of tamper-proof data block is achieved through cryptography. The contents of every new block are linked with the previous one and when any change in the data of the previous block is initiated, the change will be invalidated instantly by the following blocks through the effort of changing the data will be registered in the ledger.
Technologically, this achieves two important things. First of all, any data pertaining to Blockchain will be highly secure and fully tamper-proof and secondly, any tampering and fraudulent effort in changing data will be easily detected through this ledger system. Finally, Blockchain is also
decentralized and offers unrestricted access to ledger data by various parties who are duly authenticated.
To define Blockchain conclusively, we can summarize it as the decentralized, consensus-driven, immutable, cryptography-protected, publicly accessible transaction ledger which is not dependent on a system of trust.
Blockchain was first started as the technology behind Bitcoin, the most successful cryptocurrency as of now. Slowly, other cryptocurrencies based on Blockchain technology were unearthed and the new financial marketplace of cryptocurrencies continued to thrive. Thus Blockchain quickly became the most valuable technology for the banking and financial sector, especially for securing their transactions while not limiting access and outreach of data. In quick time, several digital wallet apps adopted Blockchain to offer optimum security cover to all transactions made by customers.
While the promise of Blockchain for financial sector continued to loom large, other industries also stepped in and the widespread adoption of Blockchain began. Soon, healthcare, retail, manufacturing, automobile, real estate, logistics and other industries have shown an active interest in adopting Blockchain.
All these industries where access to mission-critical data is often restricted and limited causing operational issues just because if the data security found Blockchain as the ideal technology that as a distributed and tamper-proof ledger system offered solutions for both accessibilities of data and maintaining optimum security. While Blockchain is still at its early growth stage, the promise of the technology seems huge for all industries and data-centric businesses.