What is Blockchain?
Blockchain is a record keeping method with the protected system to avoid hacking and other malpractices. Blockchain, as the name suggests, is an imaginatively connected block where blocks act as the information related to purchases, time, name and amount. These blocks are connected by a chain system as a public database. The system seems to be linear, but it doesn’t particularly have to be linear considering 562000 bitcoin purchases till this year. The main purpose of the blockchain is to be available to everyone without concerns regarding the change of details by unidentified persons. When a person does try to change the details, he would have to edit all the following bitcoin purchase details, which is quite not possible considering the connection among different blocks.
The uniqueness of Blockchain:
- The hash code: Each block has its hash code. In case a hacker attempts to change the details of a block, the hash code would automatically change. This would lead to a change in the following hash code connected to the next block.
- Decentralization: Decentralization is having the information all over the place. With each additional information to the block chain, the systems get new blocks. In the case of malpractices, one cannot simply change the details, as they would end up changing it for one information center while the rest of the blockchains have old blocks of data. The process of editing all the millions of data is highly impossible, especially when they do not know the exact chain links between each block.
- Transaction security: Transactions made are secure and can be confirmed within ten minutes. Once the bank confirms it with the system, these are usually updated in the block chain immediately. In case of a different country transaction, it might take some time till all the payment mediators communicate and confirm the transaction. This is similar to other transactions that happen online and are equally secure. Many block chain systems do not charge for a transaction like bitcoin. In case someone wants to change their details on a particular block, the confirmation system exists where the need to prove identification is needed. The confirmation process is designed with complete security, which lets the information to be changed without a change in further blocks. The user-friendly process made many companies and banks to follow the block chain method.
- Public view: In spite of the information open to the public eye, the confidential details like addresses aren’t available, making the system anonymous. When someone wants to change their details, changing them would lead to a change in details in all other computers. If one computer is managed or changed without confirmation other computers wouldn’t make the same mistake over and over again. Technology, when used effectively, can be the most regulated form without any malpractices. Millions of people have access to the data, and changing the data even for one block would mean being observed by the millions of eyes. The public view is of high advantage for the blocks.
- Bitcoin: The most famous application is the bitcoin block system. Bitcoins have become popular throughout the world. The system is open to every public eye. The engagement rates in bitcoin are very high with every second. Having a block chain system was perfect for bitcoin purchases and selling them
- Companies: More than 50% of the companies already have a block chain into their systems. The other companies are expected to follow this within no time. The ability of the employees to have access to the data throughout the company is the main reason for its adaptability. As hacking the system and changing other person’s details is nearly impossible, the block chain system is perfect for companies with lots of data, from global companies to small local companies.
- Banks: Banks are another place that has thousands of transactions going with every second. The security system for such an active database is impossible. Having a block chain database allows the transactions to go smoothly and without a transaction fee. Most of the banks already have block chain systems. Saving a lot of money, fast process and secured transactions have made a trustworthy way to have a block chain system in the banks. Both private and government bodies have been using the block system, where the data is exposed to the public eye without concerns about the hacking body.
- Healthcare industry: A major industry, having large databases from time to time about the patients, medicines and other employee details make the system complex and clumsy. Having the block chain system simplifies the process for the employees in the sector. This can be used in both pharmacies and hospitals. Pharmacies have medical reports, medicine lists, employee lists, and many more details. Storing the data with the utmost security and being made it open to the employee members or team members.
- Other sectors: Many industries need the information to be kept publicly. Especially government bodies, which need to record the details of the public like property records, or identity records of a person. Having a secure system is tiresome and lengthy. The blockchain system battles the odds by having an adaptable environment to both public and government systems. Contract builders and supply chain use systems also need to have large data records stored effectively, which use the block chain system. Of course blockchain can be a strong asset for companies that operate online. Many adult websites and adult dating apps like local sex app utilize blockchain to provide security for their users. It is not uncommon for adult content companies to be early adopters of new technology.
Things to improve in a Blockchain system:
The original construction of the block chain system was to eradicate the hacking hazards and make it simpler and easier for everyone. However, the few disadvantages have stopped the many sectors to use the block chain system as it can cost millions when something goes wrong. The technology cost is high compared to other methods. The cost of storing data securely is in the millions which cannot be afforded by every company or bank or private sector. The speed for recording every data can be faster. As thousands of data are added at once in a blockchain, the speed decreases, where one data has to wait to be uploaded for the earlier data. Despite the safety of a hacker, illegal activities in the bitcoin industry are many. Purchasing bitcoins illegally and selling them in different sources having caused chaos. Banks have concerns about the block chain system. The need to have a better system, which wouldn’t jeopardize banks or the database is still in the process of development. Despite the disadvantages of the system, the block chain system is still considered one of the best data storage systems.