The term Blockchain was originated from the block chain which is a rapid growing of records list in the form of blocks, linked using cryptography as a security feature. Every block contains previous block cryptographic hash, data transaction and the timestamps. Data modification is inherently resisted by the design of the blockchain. Blockchain is an distributed open ledger, that keeps the record of the two parties transactions very efficiently and in a way that it is permanent and verified.
In 2008 Satoshi Nakamoto invented the blockchain to be used into the bitcoin cryptocurrency, in the form of ledger of public transaction. The problem of double spending of digital currency for the first time was made possible to solve this problem because of the invention of the blockchain without taking into the need of central server or authority that is being trusted. The design of bitcoin became the inspiration for the other applications too.
Blockchain technology is almost as same like the internet, but having the additional built-in feature of robustness. By keeping in stock the information that is same around its network, the blockchain cannot be supervised by any other single entity and also doesn’t contain any single failure point.
With the invention of the blockchain technology, it was made possible for the people to keep the entries into the set of information record, and also the users of the community have the control on the how the record set of information is being updated and rephrased. Though it is not the new invention, but the invention of Blockchain technology had become so useful, such that it is been represented as an new innovation into the registration and distribution of information which eliminated the trust of the parties to facilitate the digital relationships.
The benefits of Blockchain technology are :
Blockchain technology helps the users in making and verifying the transactions without the involvement of third party. This helps in reducing the risk of unauthorized transactions and interventions. It is possible to modify the historical data only if a large working team is present across different data centers. This helps in reducing the risk of data tampering and created a robust system.
The structure of distributed ledger helps the user to access their entire informations and transactions. The data of Blockchain is complete, accurate and consistent to their members and changes can be accessed by all the members, thus making the system more transparent.
3. Faster transactions:
Physical Markets that are working with the digital documentation takes more time execute their transactions. Especially during non-working days inter-banking transactions takes lot many days for final settlement. This can be reduced by the blockchain converting transactions time into minutes and are processed within 24/7.
4. Reduced transaction costs:
A proper transaction system can be builded using the blockchain technology by eliminating the intermediaries of the third-party and the cost for exchange of assets.