A Quick Introduction to Blockchain: Application, Types And Uses

Introduction

With blockchain technology, businesses can better manage their supply chains and reduce costs. It allows organizations to digitize their physical assets and create a decentralized, immutable record of all transactions. This transparency in the supply chain benefits consumers and businesses alike since it helps eliminate fraud and gray market trading. It also helps companies understand their relationships with subcontractors.
Implementing blockchain in a business can save up to 50% of operational costs. However, it is a slow process and may require partnerships. Blockchain implementation requires the digitization of operations. In addition, blockchain can protect organizations from fraud because transactions are traceable and permanent. It also makes transactions traceable, which means they can be caught and punished if someone tries to impersonate an organization.
Blockchain technology works by storing information and data in blocks that are linked together by cryptography. These blocks are linked together by a decentralized network. To alter a block, a majority of the computing power on the network must agree to do so. Each block contains a unique cryptographic key. This prevents bad actors from altering the records.
Blockchain is becoming popular for many purposes. It can reduce transaction costs and eliminate mediators. However, there are some downsides to technology. The most important thing is that it requires an increasingly large network to process transactions. A single node can only process 4.6 transactions per second. This creates a significant scalability challenge until the problem is solved. Furthermore, the use of blockchain requires an enormous amount of energy, which increases the carbon burden.

Introduction to Blockchain Technology

In this tech world, modernization is at a fast pace. We are accepting new technologies every day. From voice control for google search or voice control in remote control as well. The technology has all overgrown. In this growing world, we have heard this word named Blockchain, which has been getting popularity lately, so what the meaning of Blockchain is?

Blockchain is a data structure with transactional value while assuring security, transparency, and decentralization. No one owns Blockchain. It is like a chain in the form of blocks. Blockchain Technology is an open network and can be used by everyone.

Let’s understand the definition of Blockchain by an example:

If you want to send some money to your parents and you are living in a different state, the option left for you is to transfer money through Paytm or Google pay. the money will be transferred from your bank to your parent’s bank through Paytm and here Paytm is the third party. Paytm would cut some transferring amounts while transferring the money. There is a chance the hacker could hack the amount and would the money to himself. This is where blockchain steps in the transaction would be secure, no third involvement is more accessible, and would reduce no transfer fee.

Blockchain is as old as 1982. David Chaum introduced it in a protocol dissertation. Then after 1991, Stuart Haber and W Scott Stornetta further worked on this concept and introduced cryptocurrency, a form of chain on blocks that are much more secure. The concept of Blockchain became famous in 2008 by Satoshi Nakamoto. He indeed the role of the third party, which is now a backbone of cryptocurrency.

Cryptocurrency is a type of digital currency which is used to authenticate the transfer of assets. It makes sure the financial transfers are safe using the method of cryptography. The advantage of cryptocurrency is that a single person or group does not own it. Without a central location where all the information is there, the systems cannot be hacked or stolen.

Let’s look at some of the features of Blockchain which make it unique-

• Decentralized- no single person or group or organization owns Blockchain
• Inflexible – once the rules, it is challenging to change them
• Peer-to-peer network – there is an interaction between two parties, no third-party involvement
• Tamper proof – there can be no tamper to the data.

Blockchain Application

From the meaning of Blockchain, we have understood that Blockchain is different as it is used in business and entrepreneurship. Here are some of the blockchain applications, like what is the actual application in the real world of Blockchain.

• Monetary Transfer

The primary purpose for which Blockchain was invented was the monetary transfer. Using Blockchain for money transfer is fast, secure, and inexpensive compared to today’s money transfer applications.

• Smart Contracts

Different businesses deal with several agreements with many industries and businesses. The agreements are secured by contract, but these contacts have many ambiguities which lead to fraud and errors. These frauds and errors create an obstacle in the mind of contractors. Here the Blockchain brings an intelligent solution similar to paper-based contracts. These contracts are known as Ethereum. They are self-executed, which means that by the time the contract conditions are met, they are set on their own. Ethereum is an open-source type of Blockchain that has been introduced for contracts. The usage of Ethereum is many. Ethereum is used for – crowdfunding, health agreement, financial agreements, etc.

An agreement such as a drug supply agreement, or a health agreement, could use Ethereum here as a contract. As it is a type of Blockchain, once the changes changing them is not an easy task.

• Intellectual property protection

In this world of the internet, once the information is on, the internet has the right to copy it without giving credit to the person whom the original contents were. They are copyrights in the countries, but they are just not enough. Different countries have different copyright laws, which may not go with the other countries laws. The property rights of intellectual property the rights are still infringed. Due to this infringement, people lose their data and finance. But blockchain technology has the solution to this in the form of universal intelligent contracts. Blockchain for intellectual property will help save the copyrights of the owners, authors, and artists. Once they have registered over Blockchain, no one can change or tamper with the work.

• Government Elections

The chances of error and fraud are always there. Today the election systems are manual. But we need to automate the system again and could do it with the help of smart contracts. Automating the system would be transparent, create voter privacy, and error-free elections. By Using Blockchain, the election could be held free and fair. 

Types of Blockchain

Through time from 1982, the Blockchain has evolved. There are different types of Blockchain introduced in the market. There are two types of Blockchain-

1. Public Blockchain

The public is everyone so everyone can use this type of Blockchain. It is downloaded from the internet and is available for everyone. Bitcoin is the type of public Blockchain. Public Blockchain works like the information is provided to everyone transparently and safely. There are specific rules in the public Blockchain. If the rules are not followed, they can become a disadvantage. Once the rules, it is complicated to change them.

1. Private Blockchain

Owners control private Blockchain. Trusted users use this type of Blockchain. The rules of public Blockchain change from time to time according to the conditions fulfilled. Businesses or organizations use this type of Blockchain. And their trusted participants only this type of Blockchain.

Some of the similarities between these types of blockchains are –

• Both the types are decentralized
• Once the rules in this type of Blockchain are made, they can be infringed
• Both the types are highly secure and maintain a copy of the shared ledger.

Uses of Blockchain Technology

We have learned that blockchain technology has been used in the financial sector more, but there are many more sectors where blockchain technology is expanded.

Some of the uses of blockchain technology are –

• Music

Digital music is on the rise these days. Musicians face data infringement and piracy. Blockchain helps in preventing piracy. For compensation purposes, they could use it.

• Travel

Blockchain makes travel easier—the tracking of luggage from multiple flights. Passenger identification is done. Passengers don’t have to wait in line for their identification. The acceptance of payment is also done.

• Cyber security

Blockchain technology uses cryptography to keep sensitive data safe. Eradicate the use of passwords. It would only need private and public keys.

Conclusion

Blockchain technology is a revolution. It has a high potential for everyone. Some industries and organizations have already started adopting this technology. Some people are still hesitant to accept this technology. Cryptocurrency and bitcoin are already world-famous, but some other types are still being tested and will be introduced soon in the market. If blockchain technology will capture the market one day, there is no coming back from it.