What is blockchain?
A blockchain is a continuously growing list of data, called blocks, that are connected using cryptography. Each block contains a hash code, timestamp, and transaction data of the previous block. The timestamp proves that the transaction data existed when the block was published to urge into its hash. As each block contains information about the block previous, they form a chaining sequence, with each additional block reinforcing those before it. Therefore, blockchains are immune to modification of their data because once recorded, the info in any given block can’t be altered retroactively without altering all subsequent blocks.
To put this thing is a simple word Blockchain is a method to save information in such a way that makes it burdensome to change, hack or cheat the system.
Why there is sudden need for blockchain? Blockchain is that the vision of developers who believed that the present banking industry had flaws. In particular, they viewed banks acting as third parties and pilfering transactions fees as unnecessary, and that they scoffed at the thought that payment validation and settlement could take up to five business days in cross-border transactions. With blockchain, real-time transactions are an opportunity (even across borders), while banks are overlooked of the equation entirely, presumably reducing transaction fees.
There are also other uses of Blockchain way beyond currency settings like:
- Fast Loading
- It can be considered as a faster mean of transaction as compared to traditional or older methods. Overseas Transaction confirmation can be done in matter of seconds.
- Digital Voting
- Are you worried about voter duplicity? Block is the solution. It offers the ability to vote digitally and due blockchain in built security it will be difficult for anyone to make any changes.
- Immutable Data Backup
- It provides a perfect way to backup data. There are cloud storage systems that are designed to for safekeeping the data, but they are not immune to hackers or infrastructure problems. Using Blockchain as a backup source for cloud data centers or any data.
Advantages and disadvantage of Blockchain
- As blockchain sores data in multiple devices on network of nodes so it is highly resistance to technical failures and malicious attacks.
- Confirmed block data is almost impossible to be reversed, that means that once data is uploaded into blockchain, it is unlikely to be removed or change. It makes blockchain suitable technology storing financial data or any other important government data. Any company can use this technology to prevent inappropriate or fraudulent behavior from its employees.
- Trustless System
- In traditional transaction system, it does not only depend on both the parties involved but also an intermediary such as bank or any other payment provider. While using blockchain there is no need of this intermediary as the distributed network of nodes can verify the transaction through a process called mining and this is the reason why blockchain referred as a ‘TRUSTLESS’ system.
- Data Modification
- The drawback of the blockchain is that once data is uploaded into blocks it is very difficult task to modify it and it is not always good. Changing data in blockchain requires a hard fork.
- Private Keys
- Public-key cryptography is used in blockchain to give users holding over their cryptocurrency. Every blockchain address have a private key. If a person loss his key, the funds are lost forever and nothing can be done to recover it.
- As defined in the intro blockchain grows over time. A single Bitcoin requires around 200 GB of storage and this thing is outstripping the growth in hard drives. It is increasing the network risk losing nodes if the ledger becomes too large for an individual to download and store it.