Why Should We Know Blockchain
Blockchain is becoming popular day by day and many of you heard it from your friend or watch a lot of videos about it. But in this article, I will focus on why should need to know about blockchain technology.
Blockchain is a Disruptive Technology
Disruptive technology is the technology that affects the normal operation of a market or an industry. It displaces a well-established product or technology, creating a new industry or market.
Disruptive technology takes the place of the traditional approach or technology. For example, in the late 90's no one believed in the internet but lately, it changes the entire system of communication and now most of the businesses and works run on the internet, communication, and interaction become so much easy by the use of the internet. So the internet was a disruptive technology.
So similarly the same disruptive technology is blockchain, just like the internet changes the entire ecosystem of communication blockchain is changing the ecosystem of trust.
What is trust here let us understand by the example, we buy coffee online from a company and we get the product but can we ensure that the product we got is from the same company or the quality is the same as we ask, so here the issue arises of trust because only the company knows from where the product comes from the all the important information of the product. One more example is we give money to NGOs but how do we know that they are helping others with our money we can’t track it. So this issue is addressed by blockchain technology. The issue of information without altering it.
For understanding how blockchain provides trust we need to see how blockchain technology works.
Know about Blockchain
A blockchain is a digital distributed, decentralized, public ledger that exists across a network.
A blockchain is a time-stamped series of unchangeable records of data managed by a cluster of computers that are not owned by any single entity. All these blocks of data are secured and bound to each other using cryptographic principles (i.e., chain).
It has 5 core concepts which are Hash Cryptography, Immutable Ledger, Consensus, Distributed P2P Network, and Mining which give it 3 pillars namely decentralization, transparency, and immutability.
The transaction data is stored in the block which is connected to its previous block like a chain that is the same across the network. As more transaction added chain becomes long. so if any altering is trying in the transaction all the blocks next to it will also change then the whole altering will be visible in the p2p network. which makes it immutable.
The records are not owned by one single identity instead many computers so it is a decentralized network.
The transaction is visible to everyone except hiding the user info, so the data is not hidden from the users of the network that’s why it is transparent.
To know more about Blockchain visit here Wikipedia
So here we can see the transparency provided by blockchain gives the information of every transaction without exposing the person detail(by hashing) and immutability gives the security of the data which is not owned by one individual and combining the properties give us the trust which the internet is lagging of . So this is how blockchain may change the ecosystem of trust.
This is just an overview of the blockchain and some use cases of it. But I believe blockchain can’t fully eliminate the internet way of working, so Blockchain systems will always have to exist with other more conventional systems. Humans can’t fully trust technology, this is the way the human mind works. To know more about this you may refer to this article.
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