What is Blockchain? Blockchain technology is a new concept that has come up over the recent years. Developed by the brilliant Satoshi Nakamoto (either a person or a group of people). Evolving constantly into some better each time it is hard to understand and describe in layman’s terms. It is a digital ledger or a record that holds the data to all the transaction and contracts. Each transaction and contract has an independent track record which is accessible by several computers.
This record of the deal is available for all machine instead of being restricted to one machine. These form the basic model of the “Block Chain” technology. The blockchain technology is bringing about a revolution in the financial sector and giving rise to the digital form of currency known as “Bitcoin” transaction. Blockchains form a very secure and transparent way of doing transactions online. This would be revolutionizing the business world as we know it.
How Does Blockchain Technology Work
Blockchain technology is a decentralized system that works with many central authorities to form a system network. When there is a new transaction that is taking place or comes into existence, they all come into the blockchain. For example, let us assume how a traditional bank works.
Whenever there is a transaction that takes place, the 1st party has to send the invoice or document to the other bank/person. Even if the documents need editing the edited copy of the document will not be available to the 2nd party. Only after the editing is completed, the 1st party can transfer the document to the 2nd party. This way the change in the documentation will be a long process and the communication between the two parties have to be constant for a properly edited version of the file. However, through the new blockchain development, these problems have been eliminated.
In the decentralized system of blockchain has a system of nodes. Each system that is linked to the blockchain technology forms a node within the system. The system reconciles the database all the time with the notification to each member present within the blockchain system. The information and data are not stored in a single device, this makes it nearly impossible for the hackers to fetch the data without being tracked. The records are public to all members within the blockchain.
What exactly are Nodes
To understand the complete working principle of blockchain technology, it is very essential to understand how exactly nodes function. What exactly is a node? One may ask. This computer system that is also a node for the blockchain. It validates and relays the transaction to send a copy of the task to every node in the blockchain. This means that when there is a transaction done in one node (computer system) all the other nodes (computer systems) linked to the blockchain network get the copy of the task and transaction.
Hence all the nodes within the system of the blockchain form a powerful decentralized network.In the general centralized system, one member or head system is the admin for the other systems where the data and information can be fetched from. However, in the blockchain system, every node or system is the administrator by itself.
Advantage of the Blockchain Development
The advantage of the blockchain system is in the working principle itself. This decentralized system transfers and keeps a track of all the data that is being evaluated makes it a form of high security. This system where each node is holding all the information of the transaction that is taking place makes it practically impossible to lose the transaction data. The lack in the central point makes it highly confusing and complex for hackers to exploit. This keeps the data secure and eliminates the chances of the loss of important documentation.
The traditional system requires the Username/Password as a form of login or protect our identity. The blockchain method uses the system of “HASH” as an identification. This identification can only be given is all the nodes (members) agree to the new entry of the node. The blockchain technology does not rely on the username/password system of protection. Due to the nature of the data that is transferred and stored within this system of the blockchain, the system of blockchain data security is maintained by data encryption. The encryption technology used in the security system of the Blockchain development making it impossible for 3rd parties to access the data without the authentication of “HASH”.
A Second Level Working
With this new piece of technology drilling deep into the system of data holding and transfer, the web as we know it may perhaps change for the better. Already, there have been users that can do transactions with one another. The most common use of this technology was while making transactions using bitcoins. In the year 2017 in the US alone there was a transaction of 2 Billion per day. The blockchain technology has brought about a new security level to the system of money transfer and data for businesses with online transactions deals. The estimated figure for global saving through this technology is around 6 billion per year.
Blockchain scope in India
The technology has great scope in all developing countries through the structure and security it has to offer. However, in India creating an independent blockchain solution may still be a disputed idea, ahead of the challenges. The modes of profit transfer and commissions is not very vividly defined so it may get expensive to make use of blockchain. Nevertheless, there are many that are highly skilled in the technology of data storing and information transfer. Although people skilled in blockchain technology exist in India, the leading institutes are yet to adopt this technology. The rise in cryptocurrency paves the way for blockchain technology.
Nonetheless, the government of India discourages the idea of fundraising through cryptocurrency which is a major blow to the Blockchain adoption in India.
The cost factor is also a major drawback this technology faces in India. Its primary application is a discouraged concept in India (cryptocurrency) hence the adoption of this technology can be for banking purposes alone.
However, the banks would require Blockchain experts in large numbers to execute the operations and the tasks. The execution of the PoCs would mean extra spending on the hiring of people. In a country where labor is cheap, businesses and banks prefer the older system instead of the new blockchain technology. In short, it would be impossible to adopt the Blockchain technology and reject the cryptocurrency concept. The two go hand in hand but the banking and taxation laws on India seem to have a dislike towards cryptocurrency.Tags: blockchain scope in India, blockchain technology, bockchain, future of blockchain in India, What is blockchain
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