{"id":1110,"date":"2019-03-11T18:08:10","date_gmt":"2019-03-11T18:08:10","guid":{"rendered":"https:\/\/www.testpreptraining.com\/blog\/?p=1110"},"modified":"2020-02-20T09:45:19","modified_gmt":"2020-02-20T09:45:19","slug":"blockchain-technology-explained","status":"publish","type":"post","link":"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/","title":{"rendered":"What is Blockchain Tehnology? Why is it among the top innovative technologies?"},"content":{"rendered":"\n

Blockchain is a distributed\nledger, in which<\/em> databases are shared, reproduced, & are synchronized\namong the particiapnts of network which\nis decentralized. It is useful to maintain a permanent & hack-proof or tamper\nproof transaction of data<\/em>.<\/p>\n\n\n\n

That’s a lot of technical stuff on one strike. Let’s start it from the very basic of \u201ctransactional data”, after all it is a big ‘deal’.<\/em><\/p>\n\n\n\n

The transaction in the world we are aware of is possible\nbecause of the presence of intermediates. Intermediates for example\nbanks or the government facilitates the transaction of goods and services by\ncreating trust and certainty.<\/p>\n\n\n\n

EXAMPLE 1. Electronic payment:-<\/h4>\n\n\n\n

While using a credit or debit card for transaction to the third party intermediaries, the bank approves, track and record the transaction for each party in their private accounts.<\/p>\n\n\n\n

EXAMPLE 2. Real estate:-<\/h4>\n\n\n\n

When an individual buys a new property, government keeps the record of the change in property ownership and manages the real estate distribution. <\/p>\n\n\n\n

So what\u2019s the problem there?<\/strong><\/p>\n\n\n\n

The time for regulating and recording the data that governments and the banks consume , often delays and impede the flow of business and being the centralized authority to manage these records, there is possibility of the data being hacked or corrupted. <\/p>\n\n\n\n

Applications of Blockchain Technology<\/h2>\n\n\n\n

Let\u2019s\nimagine the world without intermediates, where in the place of government or\nbanks, we have a technology that provides the same experience, direct business\nto business or peer to peer, without giving room for delay neither compromising\nthe security aspect. So welcome to the world of \u2018BLOCKCHAIN\u2019.\nBlock is basically a store where the details of each transaction are included,\nsay the date, name , the amount of money that has been transferred. Each block\nstores information that distinguishes from the other block through a unique\ncode with unique history of transaction. Then the block is verified by\nthousands of computer around the net. Once the sequence of the transaction is\nover, it goes into the blockchain database permanently. The data being managed\nby cluster of computers and decentralized, it is practically impossible to\nfalsify a single record. Blockchain is a simple and automated way of passing\ninformation securely. <\/p>\n\n\n\n

Blockchain\ntechnology does not contain any transaction cost challenging all those business\nmodels that rely on the tinch of money for the process of transaction. For\nexample, we buy tickets for travelling through railways, we buy it online. The\ncredit card company cuts the brokerage fee for processing the transaction. In\nBlockchain technology, the broker is being eliminated here, and there is\na direct link of the railway company to the passenger for the transaction\npurpose and we save the processing fee. That’s how the third party has been\nexcluded. The ticket works as a block which has unique identity and is added to\nthe ticket Blockchain. Hence, just like the ticket Blockchain contains all the\nrecords of the transaction, that is, a particular journey, or the records of\nentire train networks, every route ever taken. And falsification of any on\nticked would question the entire network, well that’s a chimera. Another\nexample would be cutting out the charges that we pay for buying a book online,\nand rather than paying to the mediator, the money directly goes to the writer.\nThe books would propagate in encoded form & a blockchain transaction would send\nthe money to the author & unlock the book. Then the market place would be\ninessential for online purchasing books.<\/p>\n\n\n\n

So in a\nway, Blockchain could change the method of maintaining records, and almost\nevery void  financial institution will be\nreplaced by Blockchain technology.<\/p>\n\n\n\n

As explained earlier, Blockchain system comprises of two types of records- transaction and blocks. These transactions are the process carried out in a particular period and stored in a block. Every block is given an unequaled cryptographic hash<\/em> that links to the previous transactions linking them to a compact string.<\/p>\n\n\n\n

Cryptography in Blockchain<\/h2>\n\n\n\n

Now Cryptographic hash <\/strong>Or Cryptography <\/strong>is a significant aspect of the system that needs to be explored. It’s a technique to convert the actual text into encrypted text that makes it difficult to manipulate the information. It’s the use of mathematical formula to create a secure distributed ledger which unables the third party to intervene. It secures the data and maintains the transparency of the transactions with providing privacy to the individual users.Cryptography warrants guarding data through complex computation logic rather than keeping it just safe.
As we are aware, in Blockchain every transaction is propagated between nodes of networks, in a peer-to-peer form so that, no one knows the origin of the transaction.
Blockchain uses advanced level encryption so that it can be completely secured.<\/p>\n\n\n\n

So it is\nclear till now that:-<\/p>\n\n\n\n

\u2022Blockchain\nis not owned by a single entity, hence it is decentralized.<\/p>\n\n\n\n

\u2022 The\ndata is cryptographically stored inside.<\/p>\n\n\n\n

\u2022 Blockchain\nis immutable, and can\u2019t be tampered to access the data inside the blockchain.
\n\u2022The blockchain is also transparent to track the data whenever we want to.<\/p>\n\n\n\n

Why blockchain is considered among\ntop technologies?<\/strong><\/h2>\n\n\n\n

\u201cBlockchain is expanding its application scope beyond banking and financial institutions into a wide range of use cases across industries; the global funding to blockchain startups since 2014 is noted to be in excess of $1 billion.\u201d
<\/p>–Frost and Sullivan TechVision Program manager, KiranKumar.<\/em> <\/cite><\/blockquote>\n\n\n\n

The\nelegance of blockchain is that it obviates the need of authority to verify\ntrust and transfer of value. Decentralisation, transparency and immutability\nare the three pillars of that sets the technology apart from any other system. <\/p>\n\n\n\n

Decentralisation<\/em><\/strong><\/h3>\n\n\n\n

Before\nthe emergence of Bitcoin, the world operated through a centralised authority to\nwhich one has to look up to solely for extracting any information. But these\nautonomous authorities have several vulnerabilities. <\/p>\n\n\n\n

  • When\nthe data is stored at one spot, it is easier for the hacker to have illegal\naccess to it and high probability of the data getting corrupted.<\/li>
  • If\nthe central system has to be upgraded, it disrupts the whole process of\nbusiness.<\/li>
  • The\ntrust on the single entity holding the entire data is highly risky of the\nentity being jeopardized.<\/li><\/ul>\n\n\n\n

    What the\nbenefit of network being decentralised is that everyone in the network owns the\ninformation. <\/p>\n\n\n\n

    Immutability<\/em><\/strong><\/h3>\n\n\n\n

    It is\nthe ability for a blockchain ledger to remain unalterable and indelible history\nof transactions. It means once data has been written to a blockchain no one,\nnot even a system administrator, can change it.Its beneficial for databases of\nfinancial transactions. The cryptographic hash function is the reason of its\nidiomatic characteristic of this technology.<\/p>\n\n\n\n

    1. The system inputs actual data and outputs encrypted string of numbers and names that serve as a digital signature.<\/li>
    2. A minute change in the file results in a drastic change in the output.It is called the \u201cAvalanche Effect.\u201d<\/li>
    3. The process is irreversible, I.e., it’s not possible to work backward from an output string to determine the input data.<\/li><\/ol>\n\n\n\n

      But the\nquestion arises, if the data is encrypted, how blockchain can be regarded as\ntruly transparent?<\/p>\n\n\n\n

      Transparency<\/em><\/strong><\/h3>\n\n\n\n

      The\ntransparency, that has never existed before, of a blockchain stems from the\nfact that the holdings and transactions of each public address are open to\nviewing. Although the person’s real identity is hidden through cryptographic\ncapabilities, one can still see all the transactions that is done by their\npublic address.It is in this way that blockchain gives large businesses a\nplatform to act with genuine integrity towards their community and customers.<\/p>\n\n\n\n

      With this much of transparency and\ndecentralised management, the individuals on the network would be empowered.\nOne could run systems that aren\u2019t possible in the current setup. Blockchain\nwill do to Technology what the Internet did to Communication.  <\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Blockchain is a distributed ledger, in which databases are shared, reproduced, & are synchronized among the particiapnts of network which is decentralized. It is useful to maintain a permanent & hack-proof or tamper proof transaction of data. That’s a lot of technical stuff on one strike. Let’s start it from the very basic of \u201ctransactional…<\/p>\n","protected":false},"author":1,"featured_media":1113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111,37],"tags":[113,114],"class_list":["post-1110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-technology","category-information-technology","tag-blockchain","tag-cryptocurrency"],"acf":[],"yoast_head":"\nWhat is Blockchain | Why is it among the top innovative technologies?<\/title>\n<meta name=\"description\" content=\"Blockchain is a distributed ledger, in which databases are shared, reproduced, & are synchronized among the particiapnts of network which is decentralized.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Blockchain | Why is it among the top innovative technologies?\" \/>\n<meta property=\"og:description\" content=\"Blockchain is a distributed ledger, in which databases are shared, reproduced, & are synchronized among the particiapnts of network which is decentralized.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-11T18:08:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-20T09:45:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.testpreptraining.ai\/blog\/wp-content\/uploads\/2019\/03\/blockchain-technology.png\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"TestPrepTraining\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"TestPrepTraining\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/\",\"url\":\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/\",\"name\":\"What is Blockchain | Why is it among the top innovative technologies?\",\"isPartOf\":{\"@id\":\"https:\/\/www.testpreptraining.ai\/blog\/#website\"},\"datePublished\":\"2019-03-11T18:08:10+00:00\",\"dateModified\":\"2020-02-20T09:45:19+00:00\",\"author\":{\"@id\":\"https:\/\/www.testpreptraining.ai\/blog\/#\/schema\/person\/b46daaf932dbfb07cbe7db807006780c\"},\"description\":\"Blockchain is a distributed ledger, in which databases are shared, reproduced, & are synchronized among the particiapnts of network which is decentralized.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.testpreptraining.ai\/blog\/blockchain-technology-explained\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.testpreptraining.ai\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What is Blockchain Tehnology? 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