Technology is the field of continuous innovation and one such innovation is Blockchain. It is not just a routine innovation, but in fact it has become a vital technology playing a key role in various industries. It is not exaggerating to say that Blockchain Technology is ruling various industries in 2018. Blockchain technology is not confined to any particular industry and is penetrating many industries, taking a remarkable role in each industry. Let’s look into the details of Blockchain technology and what makes it so powerful.
What is Blockchain Technology
Blockchain technology is a data storage tool in which a growing list of records, referred to as Blocks, are linked using cryptography. This is a shareable, permissioned, secured, immutable, and replicated ledger. The amazing thing about Blockchain technology is that it is trustable, transparent and also cost and time effective.
This revolutionizing technology is now playing a vital role in making things run smoothly. The technology is so reliable that its applications are penetrating many industries both private and public.
How Blockchain Technology Works
The operation of Blockchain technology is simple, and transactions using Blockchain can be done without the involvement of any middleman. For instance, if two parties or persons want to exchange some digital value or asset, the process would be like, they first need to initiate the transaction, then the transaction is assembled into smart contracts and are packed as blocks. And each of these blocks are related and form a network. This data will then undergo the process of validation and evaluation. If the data is clear, then it is marked verified by a tick. After each transaction gets cryptographically time stamped, the records, i.e., chain of records is made and are distributed as ledgers. The mechanics of the transaction procedure makes data tampering extremely difficult, allowing two participants to complete their value transaction exchange.
The Key Components of Blockchain
Let us now, look into the various key components of Blockchain Technology
Cryptography
The best part of Blockchain technology is that the entire transaction is cryptographically secured. The transaction between the two parties is so secure that it does not require any central authority.
Distributed Ledger
A great asset of Blockchain technology is the database, which is the distributed ledger. The data stored in this distributed ledger is secured and offers immunity against unwanted changes
Consensus Mechanism
The free flow of data in Blockchain technology is made possible using different consensus mechanisms. Not only one, but Blockchain technology has many consensus mechanisms for secured flow of data.
Decentralized
The various transactions using Blockchain are time stamped. This makes it impossible to manipulate data. Not even a single block can be manipulated in the entire chain.
Validity
Before the execution of the data, the data is clearly validated.
P2P Network
Blockchain technology works on a Peer to Peer platform. All the computers involved in the transaction have an equal responsibility in processing the data, thus the work load is shared.
Rise in the Usage of Blockchain Technology
The rise in the usage and popularity of Blockchain technology throughout the world began in 2016 and reached a prominent level in 2017.
There is no particular limitation for the kind of industry using Blockchain technology. In other words, any kind of industry can use Blockchain technology for its business. Some of the various industries using Blockchain technology are Nestle, McCormick, Kroger, Driscoll’s, Golden state foods, Walmart, Unileve, Tyson, McLance, and Dole. Driscoll’s have reached a deal with IBM to adopt the use of Blockchain technology for enhancing the supply chain process.
Blockchain technology is also proving itself in various other industries like financial and Banking sectors. A few other industries adopting Blockchain technology are J P Morgan’s Quorum, Goldman Sachs, Bank of America, various Insurance companies, Microsoft, USFDA, IBM, Wikipedia, and a number of Healthcare companies.
The various components of Blockchain technology is maturing i.e., Blockchain distributed ledger, core building blocks, etc. Also, Blockchain technology is now seen as the new face of decentralization. In other words, the Blockchain technology codification process is a shift towards a decentralized system. This is mainly because Blockchain technology uses two main features of peer to peer network and its management through decentralized ledgers.
Further Growth of Blockchain Technology
It is estimated that the Blockchain technology market is likely to reach $5,430 million by the year 2023. Blockchain technology is not confined to the financial sector. It has penetrated many industries and will almost certainly be the leading technology going into the future.
