As technology is scaling great heights each day, perhaps the most recent achievement is the “development of blockchain”. The word ‘blockchain’ is creating a buzz all around in the digital world. But for many, it’s still a technology hard to decipher.
According to a report by HSBC, blockchain is considered as a technology that is least understood by people. In a survey of 12,000 individuals in 11 nations, 59% have never heard of it, and those who have heard, only 20% of them could understand what blockchain is all about.
These statistics may appear to be startling at a glance, however, given the perplexity around blockchain technologies, they are not that surprising.
There are a few blockchain-related terms hovering around like Bitcoin, a digital currency, ethereum, and so on, which further adds to the confusion of understanding the basics of blockchain.
Thereby, this blog post is here to unravel the basics of blockchain technology and to educate you on the key aspects around everything about this technology. Stay tuned as we start with the basics first.
Facts About Blockchain
Below given are the key facts that you must know about blockchain:
Tech giants, like IBM and Microsoft, are already making massive investments in the world of blockchain. IBM invests a humongous amount of $200 million in blockchain-powered tasks.
In the last five years, VCs have put more than $1 billion into blockchain organizations.
The worldwide blockchain market is expected to be worth $20 billion by 2024.
90% of major North American and European banks are searching for blockchain solutions.
The above citations clearly indicate the rising importance of blockchain in the global economy and how no budding organization or tech enthusiast can afford to miss out on or ignore this technology.
Blockchain Technology: An Overview
In the year 2009, Satoshi Nakamoto created the term ‘Bitcoin’. Bitcoin is revolutionary in itself as it brought blockchain technology and smart contracts to the forefront by being the digital currency ever. The blockchain basically serves as the ledger of all bitcoin transactions.
A blockchain is a distributed ledger that serves as a secure storage database for all bitcoin transactions. Thus it can be considered as another method for moving and storing data. Rather than holding data at one spot, data is spread over many connections all over a network, all bolted together with the help of cryptography.
Understandably, blockchain is nothing but a seamless growing list of records known as blocks, which are connected to one another internally by containing a cryptographic hash code of the previous block.
Moreover, Blockchain is not just about Bitcoin, its applications can be extended much beyond the cryptocurrencies, extending from effective governance to medical records management to identity management to financial fraud management, etc.
Thereby, by displacing a centralized controlling authority and a centralized server with decentralized connected cryptographic blocks of data, the blockchain technology has the potential to revolutionize any industry.
How Blockchain Came Into Picture?
Blockchain is considered as one of the most advanced revolutions in digital technology. It was initially designed to manage Bitcoin however now it has turned into a rage, a revolution.
During its prior stage, the technology went up against massive criticism and refusal. But after a careful update, it turned out to be increasingly profitable, progressively valuable, and safer. It has now turned into a viable method to store information in a digitized form that is deployed every now and then.
How does blockchain really work?
As already discussed, blockchain provides us a database that is decentralized or an advanced record of exchanges that anybody on the system can see using cryptography to keep exchanges safe.
A blockchain enables everyone to send value to anywhere around the world where you can access the blockchain document. Yet, you should have a private, cryptographic ally developed key to edit the blocks that you own. Using your private key and somebody else ‘s open key, you can carry the value of whatever is put away in that segment of the blockchain.
The data on the Bitcoin blockchain only exists out of transaction data as to Bitcoin transactions. Every transaction starts with a wallet that has a “private key.” It is considered as a digital signature and gives numerical evidence that the transaction has originated from the wallet owner.
Presently, there are lots of transactions taking place around the world. These individual transactions are gathered together into a block, organized by strict cryptographic principles. The block is sent out to the bitcoin network, which is comprised of individuals running active computers.
To verify the transactions, these active computers struggle by solving difficult mathematical puzzles and the winners get honor in bitcoin. This verified block is then included onto previous blocks making a chain of blocks known as a blockchain.
Key Benefits of Blockchain Technology :
Blockchain is indeed beneficial and its benefits across industries are undebatable. Let’s take a look at some of the benefits that bring blockchain in the forefront:
Accuracy – The data is stored in blocks that are further stored on a blockchain that can’t be controlled by one person or identity. Basically, it means that there are no or extremely fewer chances of failure and the technology can fill in as a dependable space for a business exchange.
Verified CRM Software – Blockchain can really include new data security features with CRM software. The incorporation of CRM with Blockchain empowers businesses to have verified records which are verified by Blockchain technology, particularly if the CRM is cloud-based. That implies it can benefit CRM applications by confining the access to follow data from undesirable sources.
Transparency – The tech-savvy individuals guarantee that Blockchain technology is absolutely transparent. Since the blocks are recorded and included in it as a sequential order, the members can monitor the transactions easily without recordkeeping.
Quality – If there should be an occurrence of any inconsistency, a Blockchain framework makes it simpler for concerned parties to examine any issue as the framework can lead them right to its place of inception. The quality affirmation makes it a perfect technology for divisions following the business and other vital subtleties are essential.
No Tampering – As the transactions and records are confirmed each and every time they are passed on starting with one square then onto the next, either there are fewer or no chances of mistake. The efficiency of the procedure protects the data from tampering, making the technology more easy to use and productive.
Agile – In the era where time is precious, blockchain plays an important role in can assume a basic job by permitting quicker dealings. As the framework does not require a long process of confirmation and freedom, it might be used by various businesses for closing the deal quickly.
Cost Saving – Last but not least, Blockchain is a savvy technology since it doesn’t include any third-party. It makes the framework a perfect one for both- the startups and the established businesses.
To conclude, blockchain technology is a buzz around, but it’s not a new term. It gained popularity at the time of bitcoin. A few of the industries are already familiar with blockchain but many don’t even know what blockchain is all about. Blockchain has a long way to go and indeed this is just the beginning.
So, this was the in-depth blog where we discussed everything about blockchain. Have you Still not adopted the technology? Then it’s time to learn, and get your team working to figure out what opportunities it will create for your business.
James Wilson is a seasoned Content Writer at Net Solutions, New York for ten years with an expertise in blogging, writing creative and technical copy for direct response markets as well as B2B and B2C industries. Born and brought up in New York, James holds a bachelor’s degree in English Literature. He has worked for industries like IT, product design and development, Lifestyle, among others, and written some great insights on technologies like user experience design, mobile app development, eCommerce, and so on. Besides his technical background, In his free time not very disconnected from the digital - he loves to binge-watch Netflix.