Each day new inventions are being introduced; some of which are going down the hill and some are making their mark. One such form of technological invention that has the potential to stay is blockchain technology. People are prioritizing this form of technology because they are ready to put their money on mathematical frameworks that are free from politics or human errors. Soon every industry and online service provider; be it the Dissertation Editing Service In Uk or any healthcare center; every platform will be making use of blockchain technology.
A lot has been said and discussed about blockchain under the context of different blockchain dissertation topics that catching its growing speed seems to be a little difficult. However; it is never too late to learn about new things and if you also want to acknowledge yourself with the concept of blockchain technology or demystify it then a ten-minute read of this post is going to broaden your understanding.
What is blockchain technology?
Prior to understanding the blockchain applications in today’s life; it is important to have a clear concept of its definition. A blockchain is a type of decentralized database that distributes and copies transactions among the network of computers involved. The interest in Blockchain technology has been increasing since the idea was coined in 2008 (Yli-Huumo et al, 2016). It is basically a technique for storing data that makes it difficult or impossible for the system to be changed hacked, or otherwise abused.
How does blockchain technology work?
The databases that need to be transacted are stored in the structure called blocks known as chains. These chains are connected through peer-to-peer nodes known as digital ledgers. Blockchain adoption and trends are the results of three technological combinations:
- Cryptographic keys:
There are two kinds of keys that are used to run blockchain technology; these kinds are private keys and public keys. These help in the execution of successful transactions involving two parties. These are unique to each person and are used to create a secure digital identity reference.
The most significant component of Blockchain technology is this protected identification. This identity is known as a “digital signature” in the realm of cryptocurrencies, and it is used to approve and manage transactions.
- Shared ledger:
The network of peers and the digital signature are combined in this stage; many people who serve as authorities use the digital signature to agree on transactions and other matters.
- Means of computing:
When the deal is authorized, it is mathematically verified to ensure that it is valid, which leads to a successful secured transaction between the two network-connected parties.
Types of blockchain technology:
The types of blockchain technology can be divided into four main types; which are as follows:
- Public blockchain technology:
Instead of being stored in a single location, data is dispersed over a peer-to-peer network using this technique. The accuracy of information is verified by a consensus algorithm; the two of the most popular census techniques are as follows:
- Proof of stake (PoS).
- Proof of work (PoW).
- Private blockchain technology:
On closed networks, private blockchain function well for private corporations and organizations. Private blockchains allow businesses to customize network characteristics, accessibility and permission choices, and other crucial security features.
- Consortium blockchain technology:
Both public and private components exist in consortium blockchain technology, however, only one consortium blockchain network can be managed by several organizations.
- Permissioned blockchain technology:
Permissioned blockchain networks give authorized users exclusive access. These blockchain blocks are often set up by businesses to combine the best of both worlds, and they provide greater structure for determining who can participate in the network and in transactions.
The potential applications of blockchain technology:
Even though; there is some time for the industries and different sectors to completely adopt blockchain technology still some companies have already started to apply blockchain technology in their system functioning. Some of the potential applications of blockchain technology are as follows:
- Healthcare industry:
In supply networks, blockchain technology is being utilized to track and trace prescription drugs. This program may be used to quickly and easily stop the sale of fake medications, control their distribution, and recall dangerous and ineffective medications.
- Contract transference:
Legal obligations are placed on all parties by smart contracts. By storing this information on the blockchain network, this can be accessed when necessary; all participants are obligated to abide by the smart contract’s requirements.
- Supply chain management:
Blockchain is perfectly suited for tasks like real-time tracking of goods as they move through the supply chain and change hands because of its unchangeable record. Businesses that carry these items have a range of options when using a blockchain.
- Copyright protection:
Blockchain technology can safeguard copyrights for datasets like music, movies, and other works, making laws more secure and convenient to implement. Additionally, it offers accurate, real-time statistics on the allocation of royalties to content producers and artists.
- Cryptocurrency usage:
For the past few months, the cryptocurrency market has been advancing in lockstep with the stock market (helpwithdissertation, 2022). Cryptocurrency is yet another growing popular application of blockchain technology in which digital transactions are made possible without the involvement of a third party.
- Asset management:
Blockchain can be a huge help in asset management as it does not involve any middleman. Instead, blockchain technology offers a precise and open method that completely removes the chance of error.
Pros and cons of adopting blockchain technology:
Blockchain technology comes with its set of pros and cons. The following points will familiarize the readers with them;
- It provides enhanced security.
- It offers greater transparency.
- It can be traced instantly.
- It offers increased efficiency.
- It provides automation.
- It is quite costly.
- It uses high power.
- It showcases privacy issues.
Blockchain technology is an emerging invention and quite applicable in different sectors of life. Hopefully; the above-mentioned post will acknowledge the readers with this form of technology.
helpwithdissertation. (2022, July 30th). Crypto Crash: What Investors Need to Know. https://www.helpwithdissertation.co.uk/blog/crypto-crash-what-investors-need-to-know/ .
Jesse Yli-Huumo, D. K. (2016, Oct 3rd). Where Is Current Research on Blockchain Technology?—A Systematic Review. PLOS ONE .