What is Blockchain? What is the recent buzz on Blockchain?

Blockchain- New age of Storing Data

In recent years there has been a lot of talk on Bitcoin and Blockchain. Blockchain is the technology that supports and enables cryptocurrencies like Bitcoin.

Blockchain can be understood as a type of Database where information can be stored. Data is stored in the form of blocks in the database. The data or information stored in Blockchain cannot be changed, erased or removed. It is basically a Distributed Ledger Technology that is fully decentralised and has no centralized power. The digital ledger is formed by data blocks that are connected together and spread through a group of computers networks

The storage of this data is typically done in the form of a table where searching, classifying and filtering of a specific set of information becomes easy to detect and access. Blockchain is created in such a way that it stores significantly large amounts of data. This is achieved by storing these large capacities of data on a server of a powerful computer.

Blockchains differ from traditional databases predominantly in the way data is stored. The data is classified in blocks with specific storage capacities and are linked to one another. The name "blockchain" comes from the fact that all data and information is stored in blocks that are chained together.

History of Blockchain

Two research Scientists Stuart Harber and W.Scott Stornetta brought forward the concept of Blockchain technology in the year 1991. They wanted to materialise the idea of computerized solutions to ensure digital documents are not tampered with or erased

Advantages of Blockchain

● A large amount of data and information can be stored
● All the data/ transactions are permanent and immutable
● No single authority, Decentralised system
● Higher transparency
● Lower cost to maintain and store data

Relationship between Blockchain and Cryptocurrencies

The most popular use of Blockchain has been for the exchange of cryptocurrencies. Predominantly, Bitcoin. Blockchain is the foundation feature and backbone of Bitcoin. Bitcoin was created in 2008 by an alias Satoshi Nakamoto. This decentralized digital currency changes the way we make transactions and how we store and process information. The digital revolution of money and the economy would not have been possible without the technology of Blockchain.

Uses of Blockchain

● Enables the storage and transactions of cryptocurrencies such as Bitcoin.
● Can be used to manage fractional ownership for commodities.
● Used to store and access a large number of customer’s data without infringement of privacy.
● Core structure for supply chain and logistics handling.
● Real-time operations and insights.

Blockchain in the financial sector

The use of Blockchain has expanded beyond Cryptocurrencies and extended to industries like Medicine, Finance and even the government sector. Due to the high levels of security that blockchain provides, this benefits the banking and finance sector predominantly. The technology of Blockchain enhances the methods of financial transactions, storing and processing data.
● Blockchain changes the way you can make payments or transactions with banks and financial sectors.
● With Blockchains, it is now possible to do Cross-border payments.
● Trading and exchanging stocks involve a great deal of processing. Blockchain's decentralisation of data helps speed up the trading process.
● Traditional trade financials entail a lot of paperwork and a time-consuming method of billing and filling out other forms. When filling in all of the details on the database, blockchain will eliminate the processing of paperwork. This improves performance and allows for greater efficiency.
● Verification and authentication is the main basis for any financial transactions. The steps taken for verification are Face-to -face checking, Authentication and Authorization. Users can share their identity through this database with FinSer and FinTech companies.
● The firm's accounting and auditing can be done using the Blockchain ledger, which is centralised and secured by cryptography. All of the company's records can be maintained with transparency and without tampering.
● The other uses of Blockchain can be easy shareability of credit records, Hedge funding and Crowdfunding.

Incorporating Blockchain technology into the financial sector eliminates paperwork, lowers transaction costs, increases accountability, and eliminates middlemen. Blockchain is expected to replace conventional banking and financial methods due to its high data protection and permanent record.