Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.
Vitalik Buterin
Hello everyone, hope all are having a great time in their lives, if not then, don’t worry, you will back on your feet sooner than you can blink. After all, there is no fun, if there are no challenges right(easier to say than to experience, yup I can hear your mind voice). Anyways back on track.
As it happens, I have been increasingly getting interested in the fintech happenings all over the world, and now the term “Blockchain” has got my attention. I hope you guys remember when I wrote about cryptocurrency aka Bitcoin and its features along with our country’s regulations. If not here is the link for both post no.1 and post no.2
Today, I am writing about “Blockchain” which is a term often associated with this cryptocurrency. Once again, I thank my banker friend for his invaluable assistance in sending the material and pushing me to write.
What is Blockchain?
Blockchain is a ledger that keeps a record of the digital transactions that is not controlled one single entity. In other words, the formal term Decentralization applies. This ledger is shared with all participants and its stored in a highly secured format that will stay on permanently using cryptographic methodologies.
The reason as to why it is called a Blockchain is that it is a never-ending block of transactions that are on a continuous chain. These entries are time stamped and can be accessed by the participants at any single point of time.
Even though blockchain was a term that became well-known after the introduction of Bitcoin, it has now significantly evolved to all sectors of finance to food supply and has piqued the interest of Governmental authorities.
Back in 2008, a person under the alias of Satoshi Nakamoto introduced Bitcoin of which Blockchain was a core component. For years, the general impression was under the fact that Bitcoin and Blockchain are two sides of a coin that lead people to miss the potential of Blockchain.
By the year 2013, a brilliant 19-year old programmer by the name of Vitalik Buterin(whose quote I have given above) published a white paper (a formalized study) detailing how blockchain can facilitate the launch of decentralized applications. For example, a smart computer that can draw up contracts once specific criteria are met.
The uniqueness of Blockchain lies in the fact that any participant with appropriate permissions can validate the protocols of the chain and view the ledgers that are managed by computers or servers called “nodes.” (I can see you guys are dozing off, don’t worry will end your suffering soon)
The data entered in these ledgers are converted as a digital string using mathematical encryption that secures the data and prevents forgery of sensitive data which guarantees the receiver, that the message was not altered during the transit. The sender can also encrypt the data if they do not wish others to see except the intended recipient.
Ok, that’s it for now, I have covered some of the basics in the Blockchain technology. I will update you guys as I learn in the coming months. To bring some diversity, my next topic will be about the women in the tech field. So, need to research. Until then, I hope all of you will have a great time.
As usual, Namaste, Au Revoir, Sayonara and a simple Vanakkam to my readers out there where ever you are and whoever you are.