Blockchain –Decoding The Myths
There is lot being said and written about bitcoin & cryptocurrency altogether. Still, there is lot of misunderstanding among people over it, that’s when we thought how about we try to solve this mystery.
After our last article on India’s probable ban on cryptocurrency, it got our writers curious to dive deep in this alchemist world of digital currency. Working of Blockchain is as obscure to people as IRON Bank’s operation in GOT (Game Of Thrones).
What is a Blockchain?
Blockchain’s potential reaches far beyond cryptocurrency. It is based on distributed ledger technology, which securely records information over a peer-to-peer network. Every participant can see the data and verify or reject it using consensus algorithms. Approved data is entered into the ledger as a collection of “blocks” and stored in a chronological “chain”. The Data is stored in a hash (string of character), making it cryptographically secure and thus it cannot be altered; which is why it’s called ‘Blockchain’. So basically ‘Cryptocurrency’ is one of its applications and ‘Bitcoin’ is one of the currencies which was developed over this technology.
Satoshi Nakamoto, the anonymous inventor of the Bitcoin, designed the Blockchain architecture. Blockchain works when there is a vast amount of data available, and uses Artificial Intelligence (AI) to determine the authenticity of complexities in multi-party transactions. Blockchain works on distributed architecture, making it hack-proof over other technologies, where it is either centralised or decentralised, but still operated by a handful of people.
It is this characteristic of a Blockchain which has caught many’s attention. So when someone adds a block, it is viewed and verified by everyone (miners). Miners help to provide the computing power to carry out the blockchain transaction for which they are awarded with a small bitcoin fee. A miner can be any one who is interested to let his/her computer to work as an interconnecting node within the distributed network.
Blockchain – Its Future
E-commerce–Being tamper proof and peer-to-peer, it can improve transaction to be recorded and validated error free. This can solve the problem of ‘double spending’, making it trustworthy for more customers seeking to adopt digital transaction.
Banking–The same theory applies here – provides better transaction and transparency, helping in fraud detection too. Banking sector are already using this architecture with certain protocols.
Others – When Closely observed, every industry has some kind of monopoly, with a handful of people controlling it like Housing, Healthcare, government etc. Blockchain can solve this issue and make it easy for anyone to use it without fear of any data threat, confidentiality.
Limitless Possibilities, One Solution
Seems like an ad campaign right, but it’s the reality with Blockchain when applied to all the existing sectors. It is said to be game changing technology and companies are betting high stakes on it too. Indian Startups like Coinsecure,Primechain and Signzy, MindDeft Technologies, Sofocle, Trestor, KrypC and Hashcove are working on making it possible.
When will Indian government embrace Blockchain ?Do share your thoughts in our comment section below.
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