The term Blockchain originated from the block chain which is a rapid growth of records list in the form of blocks, linked using cryptography as a security feature. Every block contains the previous block’s cryptographic hash, data transaction, and timestamps. Data modification is inherently resisted by the design of the blockchain. Blockchain is a 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 in the bitcoin cryptocurrency, in the form of the ledger of public transactions. The problem of double spending on 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 for a central server or authority that is being trusted. The design of bitcoin became the inspiration for other applications too.
Blockchain technology is almost as same the internet but has the additional built-in feature of robustness. By keeping in stock the information that is the 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 blockchain technology, it was made possible for people to keep the entries into the set of information records, and also the users of the community have control over how the record set of information is being updated and rephrased. Though it is not a new invention, the invention of Blockchain technology had become so useful, such that it is been represented as a new innovation in the registration and distribution of information which eliminated the trust of the parties to facilitate digital relationships.
The benefits of Blockchain technology are :
Blockchain technology helps users in making and verifying transactions without the involvement of third parties. 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 information 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 digital documentation take more time to execute their transactions. Especially during non-working days, inter-banking transactions take a lot many days to final settlement. This can be reduced by the blockchain converting transactions time into minutes and are processed 24/7.
4. Reduced transaction costs:
A proper transaction system can be built using blockchain technology by eliminating the intermediaries of the third party and the cost of the exchange of assets.