Since its inception in 2016-17, Blockchain technology has been the buzzword across the business and information technology landscape. It is being acclaimed as the next big thing after the open-source platforms and is predicted to have a similar impact on the industry.
One of the reasons for Blockchain technology popularity is the underlying security it provides for financial transactions or anything of value. Built on peer-to-peer (P2P) topology, it enables data from a document to be distributed and stored on multiple remote servers.
Due to this remote distribution of data, it becomes difficult for one user to gain control of the entire document, or tamper with the network. However, even though the data is distributed, anyone on the network can see everyone else’s entries in near real-time, which is possible through the underlying Distributed Ledger Technology (DLT).
For all its merits, Blockchain cannot be considered a brand new technology. It is, in reality, a combination of three proven and existing technologies the private key cryptography, the Internet, and the protocol governing stimulation. A familiar platform that comes closest to this is Wikipedia, which allows many people to add new entries into an existing page.
Similar to Blockchain, Wikipedia also has a community of users who manage the ways in which the information is updated or amended, and no single person can alter the document’s information on his own.
As such, the entries on the document are from multiple sources and different publishers. Wikipedia, even though run on the Internet – a distributed platform, it is built into the World Wide Web (WWW) and has a client-server network model.
However, the similarities end there. While both run on distributed networks (the Internet), Wikipedia is built into the World Wide Web (WWW) using a client-server network model. As such, the control of server storing the databases, and facilitation of digital relationships more often rests with a single party, the
owner(s) of the document. The owner(s) also controls the management of updates and access. On the other hand, Blockchain uses a document sharing model that allows every node to create its own updated version of events and broadcast the transactions. This form of registration and distribution of information eliminates the need for a single party to facilitate digital relationships.
As a result, Blockchain delivers a unique system for digital interactions, which eliminates a need for a trusted third party. Each digital transaction is implicitly secured, and the robust network architecture of the technology adds to its safety and reliability.
Additionally, the Blockchain does not carry any transaction cost as it is a simple and fully automated technique of passing information from node A to node B securely, where the information is kept very safe. Also, Read Blockchain Applicability in Industry Vertical.
It is because, when a party initiates the transaction process, it creates a block, which is verified by numerous computers across the net. The verified block is then added to a chain, which is stored across the net.
This creates a unique record with a unique history. As such, altering a single record would mean falsifying the entire chain in millions of instances, which is virtually impossible. Thus, it allows Information Technology information only to be distributed but not copied, which makes Blockchain technology highly reliable.
The platform is a transparent ledger that is publicly accessible. It allows the users to transmit the ownership of units across the network using proof of work methods and public-key encryption.
Also, the technology uses decentralized concurrence, which means it is not centrally controlled by any institution or government agency. It means, the bigger and disaggregated the network becomes, the higher is the security.
Blockchain has a huge potential with promising capabilities to evolve further. It was created for the purpose of trading Bitcoin. However, Blockchain as a technology has evolved considerably and its functionalism has moved far beyond.
cryptocurrency. Now, Blockchain ledgers can include almost anything of value such as personal Id, loan documents, land titles, logistics manifests, etc. Moreover, the revolutionary technology helps minimize risk, and eliminates the chances of fraud, while bringing in both transparency and scalability.
It is because the digital assets are distributed and not copied or transferred over the network while allowing full real-time access. As such, the transparent ledger preserves the integrity of the document, which creates trust in the asset. As such, the technology’s potential impact on business is simply immense and exciting.
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