Block chain Technology - A revolution in information and communication technology

By Admin. Last updated 9/3/2018 7:04:56 PM. 0 comments

Block chain Technology -  A revolution in information and communication technology

In today's extremely cohesive world, commercial activities take place in a business that spans beyond geographic and jurisdictional confines. The business network is intensifying where the market partakers such as buyers, sellers, partners, suppliers and other stakeholders own, control and exercise their rights on objects branded as 'assets'. The assets may be physical assets such as land & building, furniture's & fixtures, plant& machinery, or intangible assets such as goodwill, copyrights, and patents, etc. Many of the technologies we now use in our daily life were quite revolutions in their time. Just imagine how mobile phones have changed the way we live today. Now we have smartphones facilitating video conferencing with a person who is sitting in the other corner of the world. It is a revolution in information and communication technology. Similarly, now we are in the midst of another revolutionary technology called as 'blockchain'.

 Let us understand the concept of blockchain with a simple and daily life example. Assume that Mr. Ramesh is your close friend. He is travelling from Bangalore to New Delhi. Mr. Ramesh Calls you and says "buddy, I need some money. I am travelling to New Delhi". You reply, "Sure buddy, sending money instantaneously" and hung up the phone. You immediately call your bank manager and request him to transfer Rs 10,000 from your account to Mr. Ramesh's account. The next moment, the bank manager executes the transaction according to your instructions. You will call Mr. Ramesh and confirm the transaction.  Mr. Ramesh expresses his regards for your timely help.

If we can carefully observe this transaction, you and Mr. Ramesh trusted the bank to manage your money. Though there was no real movement of cash, the banker takes the entry in his ledger that neither you nor Mr. Ramesh owns. Nevertheless, to establish trust between two parties, there was a need for third party (bank is a third party in this case).Considering the scenario, we may expect there will perhaps be a system where we can still transfer funds with no intervention of third parties and transaction charges. The block chain technology is an answer to the question. The block chain technology avoids third parties in the buying and selling transactions.

The blockchain is a combination of two words used separately by Satoshi Nakamoto in his white paper published in the year 2008. It is a distributed and scattered digital ledger that is used to signal networks across many computers so that the registers cannot be deformed without the modification of all succeeding blocks and the collusion of the network. With a blockchain, many individuals can inscribe entries, and each entry is digitally signed to ensure its authenticity. All the authorised transaction blocks are connected and shackled from the starting of the chain to the most current block; therefore the name is 'blockchain'. The blockchain operates as a single basis of truth and the backer in the blockchain network can view just those dealings which are relevant to them.

The blockchain mechanism works by recording transactions (known as blocks) on multiple specialised servers across the world, creating a distributed record of business transactions (known as a chain) that can be validated against one another to determine the legitimacy of the transactions. The only possible method to tinker with a blockchain is to break into each and every server containing a copy of the chain at once which is astonishingly tough for even the sophisticated hacker.

The blockchain technology was initially used for bitcoin dealings. Though it was often diligently associated with bitcoin transactions, the application blockchain technology goes beyond cryptocurrencies. This technology is trying to create its footprints in areas such as banking and financial services, digital identity and authentication, commodities market, e-voting, gambling and gaming, data management, network infrastructure, real estate etc. It is perhaps the major technological innovation of Bitcoin. The blockchain has the potential to alter the way we do business (buy/sell) and the ways to verify the genuineness of every business transaction. The blockchain combines the openness of internet with the safety of cryptography to offer traders and investors a faster, safer and cost-effective means to validate key data and information and establish trust.

On a serious note, blockchain also has potential security threats. Serious concerns rose against the blockchain concept, especially with regards to trust and who is responsible should a problem arise. It is also under the radar of the regulatory authorities of many countries, which will take some time, a strong performance record, for it to make a meaningful contribution to the digital world. But as a new technology, it has a long way to go and yet to earn that trust from the users.

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