Technology has transformed the way of our working and business. It has provided the solution that are difficult to handle with the old version of technology. Now, a new technology that is emerging and few countries already applied that and most of the countries are still struggling it and some are researching on it and the technology is referred as “Blockchain Technology “.
I’ll explain each and every step in detailed and in simple way, what blockchain is all about and how it affect our economy, present technology, jobs etc. So, this article is kept centric around the blockchain. I’ll talk about the blockchain technology, its process, importance its various characteristics.
Before jumping directly into this technology, first we need to know, why this technology is evolved.
In the end of the year 2008, a thesis was posted by a person named as “Satoshi Nakamoto”, on the mailing list, where the cryptographers exchange information. In that thesis, titled as “Bitcoin*- A peer-to-peer electronic cash system”. In that he cited following characteristics:-
· Direct transaction without the need of third party.
· Enabling the non-reversible transaction.
· Reducing transaction fees.
· Prevention of double spending.
[*Bitcoin was one of the first cryptocurrency (is a digital asset and was designed to work as medium of exchange using cryptography to secure the transaction)]
After the various discussion about held on the mailing list, the first block was introduced in January 2009 and their operations were commenced (Bitcoin and Bitcoin blockchain).
What is a blockchain?
People use the term “BLOCKCHAIN” and interpret it in different way and it creates confusion.
“It is a type of distributed ledger, which enable the record to get stored and sorted into the so called “blocks”.”
The following are terms that are more important with respect to the blockchain:-
· Distributed ledger Technology: — It described as the family of technology like a blockchain, where a ledger is maintained by an each individual within a group of network rather than a single central authority.
· Miner: -An individual in the network that confirms or verify the transaction by solving a cryptographic problem and adds a new “block” or transaction to the blockchain. So the ledger get updated. (A new block automatically adds after 10min. of timestamp.)
· Block: — It consist an information about a transaction that has happened or about to happen.
Below is a diagrammatic illustration of the blockchain process.
The Blockchain is also supports the smart contracts, which is a term agreed upon two parties, which will automatically be executed once it will met all the related criteria and conditions.