Blockchain technology, or distributed ledger technology, is just a way of using the modern sciences of encryption to enable entities to share a common infrastructure for database retention.
Hello everyone, hope all are enjoying a hectic Sunday. Surprised! It is after all the seasons of exams, we are busy studying our kids’ syllabus. I am on the same boat as well enjoying the joys of parenting.
Anyways, the topic of this blog is Blockchain part 3 where I will be penning down my understanding of the subject.
As detailed in my first post blockchain is a ledger that contains blocks of digital transactions available publically. A ledger that lets its user access its database anytime they wish. I also came across the acronym DLT. Often blockchain and Distributed Ledger Technology(DLT) are confused. The blockchain is a type of DLT but not DLT and it has its own specific set of features.
Blockchain records are shared with only specific participants and are a string of record. The blocks are secured by a cryptographic signature(apparently you need to be math genius when it comes to cryptography). This signature is known as #Hash and every corresponding block begins with the # Hash seal.
Whereas DLT is a decentralized(no overseeing authority) database that can be accessed by anyone and is very transparent in nature. Without any regulators, the DLT is solely managed by its participants. DLT stores data gives access and allows data modification. It ensures greater transparency and less vulnerable to attacks.
Financial experts are of the view that DLT will be a gamechanger that changes the way the world operates. It will have a significant impact on all major sector like financial, healthcare, logistics, e-commerce, manufacturing, cybersecurity and every other commercial sector. Meaning we will be soon entering the movie realm where a bracelet is enough to make payments. Not only that, your whole life will be a Wikipedia page. Just joking! but it will happen.
DLT will be used in the following ways in these sectors:
Medical: It will offer better and improved diagnosing services and patient info is updated in real-time.
Legal: Streamlining property information and inheritances validation. Protection for legal contracts and documents.
Manufacturing: Optimizes speed and performance and improves manufacturing processes.
Government Services: A transparent election and upgrades to law and law enforcement agencies.
Financial Services: Easier payments and digital currencies worldwide.
Cybersecurity: Higher level of online security and better security and firewalls.
Trading: Trading platform is well secured and transactions happen in a secure manner.
Generally, DLT will throw open the doors and make it easy for everyone to access info. However, like every other thing, DLT also has its share of challenges.
- Still, many countries like India have not drawn up a regulatory framework.
- We need evidence for everything and DLT lacks that.
- It is yet in its baby phase meaning it’s potential is still unexplored
- The question of security is there as data and participant grow, security will be a serious issue.
- Privacy law will be a definite challenge.
- Changing a conservative mindset.
The answer to all problems will only be realized as time goes and time does go. So, here is hoping for the best.
As usual, Namaste, Au Revoir, Sayonara and a simple Vanakkam to my readers out there where ever you are and whoever you are.