Block Chain Technology is a digital ledger of any transaction or in other senses we can say that it is an encrypted database that keeps records of all transactions. An excellent property of this technology is that its ledger can connect thousands of computer system and not location restricted. What is Block chain technology? It is basically consists of two words. The world block means it contains blocks of digital information. These blocks store information about any transaction that occurs including its creation date, amount, and dollar amount that you have currently purchased. Block also stores information of transactions participants.
When users purchase an amount it does not store that information according to user’s name. It store transaction information with a unique id called digital signature. Block stores this information with unique number due to distinguish it from other users. When a block stores information or data it is added in block chain. Its working follows some given steps to process all transactions. User checks multiple transactions quickly and makes a decision for purchase. When user makes transaction it must be verified. After that transaction must be store in block. When all transactions have been completed it must be assign a unique code to identify it called a hash code. When block hashed it can be added into block chain. When it store in block chain it will be available publically which shows what is block chain technology.
Major Benefits of Block chain Technology
- Due to the authentic transactions it increased time efficiency.
- Overheads are eliminated due to direct communications.
- Cyber crimes risks like fraud, interference and corruption are very rare.
- Whole process occurs in a proper record keeping way.
- Block chain protocols provide high security through decentralization and cryptographic
Top 5 Qualities of Block chain Technology
Block chain technology is an innovative cutting edge technology which is creating the starting point of new type of internet with the help of its qualities. following are the top qualities what is block chain technology actually.
Distributed System: Block chain is a distributed system which means it can run globally all over the world. There is no central database or any system which can track user information that’s why this technology is never hacked or halt. All transactions occur between two parties there is no intermediaries for interruption.
Encryption techniques: Whole transaction process based on security keys. These are private key and public key. When a transaction takes place encryption technique is used by applying and private keys. In this way each block has its own identity and makes it more secure.
Worldwide Availability: Due to its public nature it is available worldwide for all its users. All transaction also held publicly in front of consumer that makes transactions transparent.
Unchangeable: Unchangeable means when a transaction done, verify, and authenticate by other consumers it cannot change or altered.
Attribution: Users have knowledge that from where the resources are coming and how its right can be changed with the passage of time.
Top four Applications of block chain technology
Block chain technology has brought a great revolution in the field of multiple industries like Healthcare, Government sectors, financial systems, Travel and Tourism, and Retail system.
Healthcare: Block chain playing a vital role in healthcare environment. It provides security and privacy for healthcare data. Data sharing between two involved parties remains safe and secure. In this involvement of third party and overhead costs reduced.
Financial Systems: In financial sectors this technology has been implemented in many unique and modern ways. By an automated trade life cycle it simplifies the whole process with asset and payment management classification. In this process all users have same access for data. By doing so it make entire transaction process effective and transparent.
Government Sectors: Many government sectors are facilitating by this technology because it monitor and audit the all transactions in a better way. All institution and organizations can share data securely and efficiently in many other departments.
Retail System: There are many chances for this innovation to be applied in the retail divisions. This comprises at a large system by making sure the accuracy of high value supplies, fraudulent transactions, locating stolen things, facilitating essential warranties, and reorganizing supply chain processes.
Travel and Storage: This technology changing the travel industry and providing central storage point for use. By using this facility they can apply money transactions, can store important documents, seats reservations and manage travel indemnity.
What are the main key challenges of Using Block Chain?
Due the lack knowledge of technology and unawareness of block chain concepts create many problems at all industries level and financial sectors. Major hurdle for the adaptation of block chain is legacy with existing road and rail networks. Add key road blocks and comply with existing regulations for data privacy and security. Current research and investigation in this field will derive a new wave centralized system. Visit The Broad Media to get latest news about trending technologies and more about what is block chain technology.