Block chain is a state-of-the-art database. Where user’s information is stored. The most modern and secure data collection system invented so far. Bitcoin, crypto currencies mainly work through blockchain technology. Blockchain is mainly used for applications that are at risk of being forged or hacked. Like land registry, certificates, Banking etc.
As it is a decentralized technology, the user does not have to rely on any bank, organization or anyone.
How does block chain work?
Basically block chain works in three parts.
1. Creates a block with some information.
2. Gives a hash of this block.
3. Adds the hash of the previous block to this block.
How Does a blockchain Work: A Step-by-step
For example, someone sent 1000 dollars to Anyone by block chain. Now the block chain creates a block with all the data such as 'who sent it' 'to whom' and gives a mathematical hash (Identity number) of this block.
In this way, when the first block is created then Creates another block with hash and adds the hash of the first block. In this way, all the blocks that will be created add a hash and add the hash of the previous block to create a chain. As a result, If someone hacks a block, Nothing will happen. Because One block is linked to another block. He must hack all the blocks together, that's impossible for a hacker.
Type of blockchain:
There are three types of blockchain.
1. Public blockchain. 2. Private Blockchain.
3. Federated/consortium Blockchain.
4.Hybrid Blockchain.
Public blockchain:Access to public blockchain is not required. Anyone can access it, see the ledger and use It. Everyone who joins here will have the same benefits.
private block chain:Access to a private blockchain is required. It works also like a centralized blockchain. Suppose a bank uses a private block chain - now anyone can not access the block chain. Only those authorized by the bank they can access and view it, will be able to control. If there are any problems, Then the blockchain will make decisions based on majority opinion.
Consortium/federated block chain:Consortium block chain works a bit like private block chain. Private block chain is used by a company, a bank. But the consortium blockchain is few banks, few companies, few organizations working together.
Hybrid Block chain:Hybrid block chain is the combination of private blockchain and public blockchain. Hybrid Blockchain does the work that needs privately and the work that needs to be done publicly does the work privately.
Advantage of blockchain?
1.Block chain is able to secure your information. Helps to root fake, fraudulent and insecure activities.
2.Any data is stored across the network instead of a single server making it harder for hackers to hack.
3.Usually,If you send money through a bank or an intermediary agency, they will know your information But since the block chain is decentralized, no one can know your information.
4. There is no service or transaction charge. Especially, If the big transactions done by the government are done through the block chain then a huge amount of service charge would not have to be paid.
Disadvantage of blockchain:
1.If at the time so many users on blockchain- then blockchain can be slowed down.
2.Its very hard to integrate into a legacy system.
3.User have to maintain their own wallet.
Where is blockchain use?
Blockchain is used in many applications. Many jobs are being made suitable for blockchain. Currently the jobs that are done through blockchain are: Money transfer, Loaning/Insurance, Real estate, land registrar, Secure information, Film/art industry, Voting, and more
Money transfer:Blockchain is the fastest and lowest charge technology in money transfer. It is especially effective in international transactions. It can work very quickly with low transaction charges. Where other services can take days, blockchain can transfer in just a few minutes.
Lending/Insurance: Lending and insurance institutions can use technology to do their work very smartly. This will create more transparency between them both. All data exchanged between them will be recorded. Also can use blockchain in the payment process.
Real Estate/Land Registry:For Transactions, verification of ownership, transfers require a lot of documents in this sector. Which is not suitable in this age of technology. Blockchain can be used to do this smartly. This sector can be made safer, faster and cost-effective by using blockchain.
Secure information:Blockchain is the most secure technology to keep your potentially important personal information secure.
Big companies store the most important documents in the blockchain. Also they can transact their salaries, charges, etc. through the blockchain.
Blockchain is used to store various government documents, banking, espionage related information.
Medical patient information, public welfare work, beneficiary information etc. can be securely stored on blockchain. Film industry/NFT:Blockchain is used for the distribution of films, songs etc. on the Internet. The authority of the film can be saved through blockchain.
NFT(Non Fungible Token) is a thing whose sole owner is only the person who will have its token. For example someone drew a picture and now no one can claim ownership of that picture. NFT is used to save by blockchain .
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