Blockchain has developed into a cross-industry information technology, which can be used for a wide variety of purposes. Blockchains, have become a subject of interest for many big companies including McDonalds, Nestlé and IBM. Platforms such as “Food Trust” by IBM are already based on blockchain technology. They are used to trace food supply chains in order to create more transparency.
What is Block chain?
Block chain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Block chain is a type of DLT in which transactions are recorded with an immutable cryptographic signature called a hash.
Why is there so much hype around block chain technology?
There have been many attempts to create digital money in the past, but they have always failed. The prevailing issue is trust. If someone creates a new currency called the X dollar, how can we trust that they won’t give themselves a million X dollars, or steal your X dollars for themselves? Bitcoin was designed to solve this problem by using a specific type of database called a block chain. Most normal databases, such as an SQL database, have someone in charge who can change the entries (e.g. giving themselves a million X dollars). Block chain is different because nobody is in charge; it’s run by the people who use it. What’s more, bitcoins can’t be faked, hacked or double spent – so people that own this money can trust that it has some value.
How Does The Block chain Work?
Block chain provides us with a way to protect our digital money by writing a few lines of code. The code will run in a secure block chain environment and will only be accessible to the authorized users. Now, whenever you need to secure any money or transfer to another user, you write a block chain program and both of you send the money to the program. The program will keep your money safe. You can even program it to transfer the money automatically to a particular person based on the result of the bet (or any other event). The contract logic (of the program) will, of course, be decided and agreed by all the involved parties. Once the program is uploaded on the block chain, it cannot be stopped or modified.
Block chain software:
The process of solving these mathematical calculations by running the block chain software is called “mining” or Bitcoin mining in general. The people engaged in Bitcoin mining are actually contributing their computing powers towards operating the network nodes thus
Block chain technology to be useful these days and is trying to add its features to the system according to their requirements. Block chain is still in its initial phase to find its scope in the business world. In some countries like the USA, authorities are looking forward to adding block chain as a new voting system, which can bring more transparency in Presidential elections.
This blog is authored by Lalitha B- Technocrat Club