Blockchain is a digital method to store data in a decentralised way. To run any business information plays a vital role and blockchain provides facilities to the business to store, share, and keep a record of the data and relevant information. Blockchain technology is used to store the information in blocks that cannot be changed and altered by a third party.
How does blockchain work?
Blockchain is also known as a digital ledger that contains the information and stores that in encrypted form. The process of blockchain is explained below
- Blockchain has three elements known: Data, Hash, Hash of the previous data. Hash is the cryptographic signature that cannot be changed or altered by a third party and if anyone wants to change the hash then the previous hash will also be changed so it is detected that someone is trying to escape the data.
- Blockchain works through a public key and a private key. The public key contains only that information that has to be shared with the other party and the private key contains personal information like password of email etc. So it helps to maintain the privacy between the sender and receiver.
- For example, if anyone wants to transfer the money from one account to another account using blockchain technology. We can say if person A wants to send money to person B then the transaction occurring between A and B will be in an encrypted form through cryptography. A is using a digital signature to send the money which is a private key Here the role of the miner occurs to confirm the transaction between A and B
- It Generally takes 10 minutes to process the transaction by a miner in the blockchain technology which is the reason people are criticising it.
- Buying and selling bitcoin transferring money from one country to another requires the process of 2 minutes which is generally less than transferring money from the bank which takes 1-2 days.
- So blockchain works with high security because of the two cryptography keys public and private which enhance the safety of digital transactions between the parties.
Blockchain technology is used in the various field like
- Supply chain
- Property Management
- Healthcare system
- Trading and voting system
Bitcoins are the digital currency introduced by Santoshi Nakamoto on 9 January 2009 with the purpose to eliminate the intermediaries between the transaction procedure. Bitcoins transactions are verified and recorded through the cryptographic method known as the public or private key. Bitcoin is an example of blockchain development technology like https://4soft.co/services/blockchain-development used to do the peer to peer transactions using network codes.
Blockchain is also used in the supply chain system to keep the record of the relevant information and provide the access to the only person to whom it can be permissible. For example, IBM used blockchain technology in the supply chain for assessing the data to permissible participants. It ensures the accuracy of data and provides the benefit of transparency because data entered one time can not be changed and altered by a third party.
Blockchain technology is used in real estate for property management. It maintains the record in a digital form and also connects with buyer and seller directly which reduces the intermediate that turned out to be cost-reducing in the field of real estate. Some benefits of blockchain are
- The automation process has reduced the cost of real estate.
- Increase the transparency in property management.
- Provide a better opportunity and pool for investing in real estate
- Enhances the security of investment through digital security provided by blockchain
Blockchain in the banking system
In the traditional method of payment, the transfer of money from one country to another country takes 1-2 days of processing. Blockchain reduces the time limit of the transmission of money between the parties because it eliminates the intermediary or centralised authority. Through the use of blockchain, people can send money directly to whom they want to send with the assurance of high security. It is a distributed ledger that keeps a record of the transaction and provides the access to only permissible persons.
Blockchain has a wide range of use in the health care system. Blockchain enables the healthcare system to maintain and keep records of the data of their patients in the form of a ledger distribution. The data are only accessible to doctors and health management persons. The access of participants is verified to ensure high security.
Benefits of BlockChain in health care
- The data record kept in the blockchain is not edited and altered by the third party which ensures the transparency of data.
- Nobody can misuse and hack the data of patients in the blockchain because it stores the data in the form of encryption.
- It is the decentralised way to keep a digital ledger so it provides the authority to view the data to the permissible participant.
Trading and voting system
Blockchain is also used in the trading and voting system. You can vote for the participant by using blockchain technology. It will not reveal your original identity and can do the process faster as compared to the traditional voting system.
Blockchain ledger technology is used in the trading system for the transmission of shares and other security bonds without the faster processing speed or elimination of middlemen or providing a highly secured form of doing trading.