Blockchain Technology

Most of us must have heard about cryptocurrencies and may even have used or traded in them but have you ever wondered on what technology are cryptocurrencies based on?

The fundamental block of cryptocurrencies is Blockchain. Now you may ask what in the world is this term ‘Blockchain’.

Well, it can be defined as a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. A single block in the chain contains a wide number of transactions, and every time there’s a new transaction on the blockchain, a record of that transaction is added to the ledger. What this means is that if even one block in the chain was changed, it would be immediately appear that it had been tampered with. If hackers wanted to corrupt a blockchain system, they will need to change every single block in the chain, across all of the distributed versions of the chain.

Cryptocurrencies or Blockchains like Bitcoin and Ethereum are continuously growing as blocks are added to the chain, which adds to the security of the ledger. The main advantage of blockchain is that it’s a database for recording transactions, but its significance extends far beyond that of a traditional database. For example, it removes the possibility of manipulating by anyone, as well as providing these benefits:

• Blockchain minimizes transaction time from weeks or days to minutes and seconds. Settlement of transactions is faster because it does not require verification by any central authority.
• Transactions need less overseeing. Parties can exchange items of value directly.
• Blockchain removes the duplication of effort because parties have direct access to a shared ledger.

In the coming time, blockchain is surely going to become a gamechanger for India as well as the whole world. It will help in removing all the major problems in most of the essential services provided by the government. As per predictions, blockchain is going to become a massive $176 billion business by the year 2050.