Blockchain 101
Blockchain might seem very complicated and at times it surely is, but the notion behind it is actually very easy to understand, the concept can be grasped very smoothly. But to understand blockchain effectively the prerequisite is to comprehend what a database is.
Talking about databases, it is a compilation of data and information that is stored virtually. It is stored specifically in a table like format so that it is easy to find data or information that is being looked into. It is also easy to filter the data. But the question then arises that how is a database different from a spreadsheet?
The difference between these two is that a spreadsheet has information that has limited access and is confined to a number of people only and the storage is also restricted. Whereas the exact opposite implies to the database the data stored is easily accessible, it can be retrieved by multiple sources altogether. The servers on which such databases are housed are harbored on powerful computers. The computational power and the storage capacity is crucial for the data to be accessed by multiple sources.
Coming back to the main topic is, Why is blockchain important?
Information is the blood of business. The speed with which the information is transferred is the essence of a successful business. Because it delivers instant, shareable, and entirely clear information, held on a well established ledger which can only be viewed by authorized network users, blockchain is excellent for delivering and transmitting that information. Through blockchain almost everything is trackable such as account transactions, orders, payments etc. The details of transactions can be monitored effectively as almost everything is transparent, this paves path for effective and feasible opportunities.
Basic characteristics of blockchain
Distributed ledger technology (DLT)
The distributed ledger and the transparent transaction records are accessible to all network users. Transactions are only recorded once within the shared ledger, terminating the chances of invalid transactions which is common in traditional corporate networks.
Records that cannot be tempered with (Immutable records)
After a transaction has been recorded to the shared ledger, no one has the authority to alter that. If the data is updated in the transaction record, a new transaction is made to maintain the transparency of data, showing both the transactions that have been made, ensuring 100% transparency. .
Smart contracts
A collection of rules known as smart contracts are held on the blockchain and carried automatically to speed up transactions. A smart contract can specify requirements for corporate bond transfers, as well as payment terms for trip insurance among other things.
Let’s make this simple by understanding it through an example. For instance there is a company that produces pens, the pens here are the data and the distribution of those pens in the world is recorded in a database. Around the world, all these pens have similar colors and textures that are recorded in the Distributed Ledger Technology which is present with every person who owns the pen. The alteration of any sort is done through a smart contract, if any owner needs to change anything about the pen it can be done only through the clauses present in the smart contract.
How does blockchain work?
Each transaction is logged as a “block” of data as it is carried.
These transactions depict the motion of a tangible or intangible asset. The role of the data block is that it stores any data that the user wants that includes who, what, when, where and how much
Each block is linked to the ones that came before it and those that will come after it.
As an asset transfers from one location to another or the ownership changes, these blocks form a data chain. These blocks validate the timing and the line of transactions, and they are securely linked with each other to prevent any block from being changed or a block to come between two other already existing blocks.
In blockchain, transactions are linked in an irreversible chain. Each successive block reinforces the prior block’s verification, therefore strengthening the entire chain. This ensures that the blockchain can be tempered resulting in stability and strength. Hence the ledgers of transactions are completely transparent.
Variety of applications and games have been crafted by Narsun Studios using this technology and they have proved to be very successful. Blockchain is still in its late 20’s and it is bound to make a mark on this world. The amalgamation of bitcoin and other cryptocurrencies with blockchain technology has made this success possible. Buzzing in almost every business investor’s mind is the word “Blockchain”, it is the new tomorrow. The reasons behind its success is the elimination of the middleman, this has made things to be very cost effective and almost every operation done through this tech is run smoothly.
