Blockchain in its essence is a series of time-stamped data records, managed by a bunch of computer systems owned by multiple entities. The system uses a special type of network called P2P (Peer-to-Peer) which divides its entire workload between all participants with equal privileges.
These participants are called Peers which are interacting, and conducting business with each other. It means the technology has no central authority which is the best example of a decentralized system in a modern era. All ‘blocks’ of data are ‘chained’ together in an unbroken bond using cryptology. This chain allows multiple parties on the data block to safely share data while being anonymous. This leaves a transparent audit track for all transactions.
Who Created the Blockchain Technology
A mysterious individual or a group named Satoshi Nakamoto introduced the blockchain technology in 2010 to a mild response. This same group or individual is responsible for the famous cryptocurrency Bitcoin and Original Bitcoin Client as well. The real identity of Satoshi Nakamoto is yet to be known but open to wild guesses.
The search for elusive Nakamoto has provided unsatisfactory results. Three individuals were suspected to be THE Nakamoto but all three of them strongly denied. Nonetheless, the system is operational and perceivably transparent enough for people to start conducting business.
How This Technology Works?
Bitcoin was the first reason this technology was felt needed. The transaction process is initiated by one party which is verified by millions of interconnected computer systems across the internet. When the transaction is verified it is then added to the chain. This chain creates an individual record history for each initiated block. Hence, the interested users can easily purchase the desired Bitcoins among the plethora of options.
A Simple explanation of blockchain technology describes it as a fintech product, but it is more than that for its ability to store data about transactions, contracts and agreements in a decentralized manner.
A person usually requires a bank to exchange currency or transfer payment. With this technology there is no need to depend on third parties. For example, if we implement this technology in a Railway company then they can dramatically increase their profit by moving entire ticketing process to the blockchain. When a user purchases tickets online, the credit card processing fee is applied on both the user and the Railway Company. Similar to Bitcoin, the chain of tickets holds a record of all the tickets available, all the train routes, every ticket ever sold, and every journey ever taken. While the interconnectedness of computer and the way this technology works is a bit complex but it is transparent since it leaves no margin of falsification for the company.
Some Broad Uses of Blockchain in Different Sectors
Sending and receiving payment is the most common use of this system but it is important to test it in other areas too because there is always a room for improvement. For example, there are several products that have the same name but not necessarily the same origin. It is normal to receive a counterfeit item when you specifically ordered the right one. This usually happens in the case of medicines, few fakes can easily make their way into the countless variety of medicines in modern times.
If drug traders implement the technology, they would have to list only the original item otherwise it will never be sold. That is the major benefit of this transparency. When looking for a medicine, user will not be able to find seller’s identity but will find everything related to the medicine just like with currency and tickets.
Another process that is gravely exhausting and time consuming is the voting process. What if we could somehow change it and people can vote from the comfort of their homes? Well transparent voting is indeed one of the best transparent use of blockchain.
Blockchain development will not only eliminate the fear of hackers but will also allow countries with low number of voters to encourage more people to vote. Voters would also maintain their secrecy as to who they are and who they voted for.
Use of Blockchain in Supply Chain
Moving on, there is a desperate need to streamline the supply-chain of the global economy. Most products are manufactured by involving multiple suppliers in the chain. The problem with such a system is that if one part fails then the entire chain will have to absorb the repercussion. With the help of this technology, it is easy to pinpoint the exact stage of manufacturing process within the supply chain. Thus, it allows companies to add notable values to their services.
If there were no limitations, this article would have mentioned 50 other uses of this technology that will produce successful results. Stay tuned to learn more about this revolutionary invention.