What is Blockchain Technology

What is Blockchain?

The Blockchain is a new way to store and record transactions. It’s very much like a traditional database but the blocks are linked together cryptographically in order to make sure that they are temper proofed. Blockchain technology was invented in 2008 to create a digital currency. Each block in a Blockchain is computer code containing some form of information such as a contract, certificate of ownership, a statement forth entity or proof of a bank financial transaction but each block of information in this computer database is securely connected or chained to the other through a digital signature.

If you trying to send money to relatives it can take three-five sometimes more days to move the money and because we have to very certain about where is the money gone to before technology didn’t allow to do that quickly and cheaply. With this technology, it would be faster, cheaper and would be more secure. As new information is added, the length and complexity of Blockchain increases and a computer database get bigger with more or more people apart from it. But if someone makes an unauthorized change, everyone else in a chain can see where It happened and agreed whether the changed valid or not.

 For example:  If a person is deciding to buy the home of another person for thousands of pounds, instead of hiring a lawyer they can actually decide to gather that they would register that on to the Blockchain so they would record a contract on to the Blockchain that would indicate that the person has agreed out of thousand pounds on today that he/she would buy the another person’s house. It would give you a public ledger that so would be transparency and anyone could see that the person has agreed to pay this, and he/she couldn’t go back to late date and change it to be 500 pounds and we could also do things like transfer the ownership through the title dates and those kinds of things and that would all be publicly registered in the Blockchain.

How distributed ledger works?

A distributed ledger is something allows us to produce a temper proof record of transactions on to a public ledger. It’s very similar to how an accounting ledger works but actually, the idea behind the distributed ledger is we get rid of the middleman. We can use distributed ledger technology to help fisherman for example in Scotland to prove the provenance of a piece of Simons, we could say that it was definitely farmed on this time from this lake and in this particular fashion and that could all be recorded transparently on to a distributed ledger which anyone would able to track.

Everyone can have an identical copy of a distributed ledger and this database of assets is shared across multiple sites. Well, nothing is vulnerable to cyber-attack hacking it is extremely difficult. If you had a distributed ledger with a thousand computers own it and you had stored a contract into that ledger. Someone want to come in and hack can change some of the information on that. In order to do that they couldn’t just hack a single computer, they would have to hack every single others person’s computer at the same time and change exactly the same piece of information.

How it helps in a business?

The technology could also help small-scale farmers, e.g by registering the availability of that approaches on a Blockchain. It could allow them to create economies of scale and guarantee a supply chain to large scale customers. Within government, there are a number of potential applications for a distributed ledger that could revolutionize the way of work and a delivery of public services.

I believe this technology will have a fantastical impact on the way a society runs where the government runs the where we interact with one another even just not an economical transactions but on a day to day bases.

Bitcoin is not a Blockchain?

             Bitcoin is an unregulated digital currency created in 2008 by Satoshi Nakamoto with the intention of simplifying online transactions by bypassing government control of currency. By storing a transacting the currency over a peer-to-peer network a Blockchain rather than using a central monitory repository. It’s important to make the distinction a Bitcoin is not a Blockchain itself. Bitcoin is transacted over open, public anonymous Blockchain network. In many ways, you can think of Blockchain as the operating system and Bitcoin is one of the many applications that run on that system. The Blockchain that underlies Bitcoin has some fundamental similarities but also key differences to a Blockchain build for business such as the Linux foundation hyper ledger fabric.

·         Both are cost effective as they increase the speed of transactions and reduce our hack cost.

·         Both are highly efficient as the transaction is recorded ones then visible to all parties through the distributed network/ledger.

·         Both are temper evident the transaction can’t be changed. It can only be reversed with another transaction in which case both transactions are visible.

However, a Bitcoin Blockchain is limited in a few ways:

·It's primarily designed to transact cryptocurrency and it’s also open a public meaning anyone can join and view every transaction that ever has on the network.

·         Its anonymous meaning it’s nearly impossible to know the identity of who is involved in a transaction because of this it requires heavy weight cryptography to deter ___ activity which requires significant computing power. These characteristics led to many issues around the efficiency, confidentiality, security, and trust would conduct business. Especially around regulated industries. 

On the other hand, the Blockchain build for business and able to use to exchange anything a value, whether tangible like a car or house intangible like a pattern or copyrights or digital like photos or videos. It’s private so the invited members know the exactly who they are doing business with. It’s permission so participants are only given access to data relevant to them and it runs on small contracts, business logic embedded into the network reducing the spies