If we talk about Blockchain Technology definition, then we first find out that nowadays it is incredibly popular and most of the people want to know about Blockchain and how the Technology will benefit them as an individual.
Basically, Blockchain is a chain of blocks which contains information and this technique was generally described by the group of researchers in the year 1991. After that in the year 2008, Blockchain was invented by Satoshi Nakamoto and the main purpose behind this is to serve as the public transaction ledger of cryptocurrency bitcoin. This invention took place to solve the double spending problem without the need of a trusted authority or central server and the Blockchain for Bitcoin made it first digital currency to solve all this problem which is discussed above.
A blockchain is a distributed ledger that is completely open to anyone. It is very interesting to know that it has an amazing property once if they have recorded in a Blockchain then it becomes very difficult to modify or delete it.
If we want to know about how does it work then we have to focus on the working system of an individual block. So, basically, each block contains some data, the hash of the block and the hash of the previous block. They store data inside the block and it depends on the type of blockchain. For example, Bitcoin block stores the details about the transaction here so that the sender receives a certain number of coins. A Block also has hash associated it. For understanding you can compare the hash to a fingerprint, it identifies a block and all of its contents and mainly it is just as unique as that of fingerprints. Once a block is created its hash has been calculated and if something changes inside, the block will cause the hash to change. So, in other words, the hash is very useful when it comes to detecting changes in the blocks. If the hash code of the block changes, it no longer has any association with the same block and also the hash of the previous block and this is reflected in the whole chain. This is the technique that builds the Blockchain Technology & makes it very secure.
Here, the best Blockchain Technology application is for being the key mechanism behind the Cryptocurrencies. For example, Bitcoin and Ether which is the currency of Ethereum. It serves as a bookkeeping platform or ledger that is incorruptible, enforces transparency and bypasses censorship.
If we mentioned about what exactly the Blockchain is then, in reality, it is a ledger that stores transaction Data which are distributed across many nodes and it is secure to use. It can be mostly used for a wide variety of applications like tracking ownership or the provenance of documents, digital assets etc. As we all know that through the bitcoin digital currency, the Blockchain Technology was popularized.
If we talk about Blockchain Technology benefits then it is very effective in managing the challenges in business operations in far-flung locations and the need for precision and accuracy is paramount.
Blockchain also helps in connecting human resources professional plans, direct and coordinating the recruiting, interviewing and hiring of new staff. If we notice there is a great deal of technology behind hiring, retaining, evaluating, compensating and even terminating employees.
The Blockchain technology helps in Supply Chain Management through which it offers the benefits of traceability and cost-effectiveness. It can also be used to track the movement of goods, their origin, quantity and so forth. It makes it easier for a business to carry out investigations and execute necessary actions. If any kind of disparity is detected somewhere along the supply chain then a blockchain system can lead you all the way to reach in its origin.
This was all about the Blockchain Technology which is going to transform the future of Money Transfer, Currency Exchange & other transactions & make it secure than ever before.
This article was originally written by Shristi Rupam.