Technology
What is blockchain?
Block chain is an immutable digital ledger which records transaction and tracking of assets within a network. Each transaction is grouped into blocks which are linked together forming a secured transparent chain. Block chains are mostly used in cryptocurrencies and supply chain management. It also finds its uses in the banking and retail sector. Blockchain enhances trust, traceability and efficiency across multiple industries.
Features of blockchain technology:
Control and decision making is done through a distributed network rather than a centralized entity. It increases the transparency and trust among the users. Blockchain is immutable means no participants can tamper with any transaction after anyone has recorded into a shared lodger. If there is an error in the transaction, a new transaction is added to reverse the mistake and these are visible in the network. Blockchain asks for consents for recording transactions. If a majority of participants give their consent then it can be recorded.
Benefits of blockchain technology:
Blockchain gives better trust by creating member only secure member only networks. Confidential records are shared only with authorized network members creating trust and end to end visibility across the system. Blockchain has greater security as it requires consensus among network members to validate transactions. It is based on the principle of cryptography, decentralization and consensus to create highly secure software system. Distributed ledgers store smart contracts which automate processes and speed up the transactions. It facilitates seamless automation of transactions.
Working of blockchain
Records transaction as blocks: In blockchain each transaction is recorded as a block of data in a blockchain. These blocks keep tangible and intangible details. It includes critical information such as who, what, when, where and the transaction amount. It also contains any specific condition like temperature of food in food supply management.
Connects block together: Block chain connects one previous block and the next block which creates a secure chain of data. It is done by cryptographic hashes which are the unique identifiers for each block. Cryptographic hashes make it impossible to alter any block without changing the subsequent blocks, making it impossible to alter any block.
Builds Irreversible block chain:Blockchains are irreversible. It reinforces the security and validation of previous blocks, which strengthens the entire block. This makes it tamper-free as malicious and fraud transactions cannot occur.
Trust and Immutability:Each block makes it more secure making it nearly impossible to change any past transactions. The ledgers on which network members rely on prevents fraud and ensures that all transaction records are accurate and unchangeable.