Blockchain

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Blockchain: How Blockchain Technology Functions? 
 
The term Blockchain came into light in 2008 by Satoshi Nakamoto. However it gets its frame 
when bitcoin became popular and needed a secure system to record transactions.  The 
original idea was to improve the quality of ledger system and data maintenance. It is the 
technology which passes the data from one network to another with the original 
information from its source. In blockchain other blocks are identical replica of source block 
where any change in source block will applied to all the blocks. This data sharing creates 
network blocks and the process of passing data from network to network becomes a chain 
of digitally recorded blocks and that's how it gets its name Blockchain. These blocks are in 
the form of merkle tree or hash tree where every block is connected with its source block 
and all information is passing through the top hash. 
Structure of Blockchain 
The concept of blockchain started with the word cryptography. Cryptography is making 
codes to secure the connection to get breach or read by third party which is not allowed to 
get into the server. Blockchain is fundamentally secured system to prevent data get alter, 
change or distributed to unauthorized party. Cryptography makes it sure that without the 
crypto key data can't be change from the source or any of its connected blocks. The owner 
of the server has two crypto keys one of them is private and another one is public. Public 
key is used by all the connected servers to check and identify the integrity of given 
information and private key is used by only owner of the source block. However these 
crypto keys are not enough to make changes in data it takes majority of connections to 
validate the changes after that it would be possible to alter information. 
Functions of the Blockchain 
In present time, every sector which is working in area of data collection and sharing has 
concern with its security. Data could be loss or alter which puts information of the data into 
wrong hands and it could be misused for any purpose. Blockchain is a perfect answer to 
these problems which creates multiple connections globally so the information is secured 
from getting lost or breach. These are the main reason why Blockchain is widely getting 
accepted- 
 Transparency- Blockchain is secured by cryptography which higher it's standard on 
transparency on data and information. Transparency is most demanding approach in 
every sector where service, product and consumer, provider and producer 
relationship is obtained. Blockchain contains the information of source from where 
activity gets started when and who is in charge and all. For consumer's point of view 
its satisfaction to track all details and know what are they having. The major 
industries which are adding Blockchain in their business are Healthcare, Supply chain 
and Financial Institutions where data is the key asset for further development. 
 
Integrity- Data security is the priority of every company, tempering altering and 
distribution of data without permission is illegal. It makes deterred some major 
companies and forcing them to look for the other options for data security. 
Blockchain with its decentralization option creates transparent look of data, where 
users can look for the information and track the changes. There are now blockchain 
cloud data service providers with long term data storage and security. To ensure the 
companies these providers use non reversible signature on data so it's become more 
authentic and trustable. 
 Cost Efficient- Companies are investing loads of money on record security and 
maintenance which is very costly and time consuming. With the help of Blockchain 
records would be more secure and easy to search whenever needed. 
Decentralization also creates transparency between companies, firms and business 
partners so there are no obligations and everyone can lookout for records 
information individually. 
 Time Efficient- Most of the financial institution and companies are still moving with 
old and manual paper process where records are contain in registers which is not 
secured for long term. It is also difficult to find information in this paper based 
records. Blockchain make records digital and easy to use for long term. 
Serving Areas 
Currently blockchain is mostly used for financial systems. Due to its origin is connected with 
bitcoin its first serving area considered as banking and financial sector. However if we see 
deeply the major operations handled by blockchain is maintain records and secure their 
integrity and confidentiality. So there are many industries which would get improve with 
blockchain- 
 Transport and supply chain- Highly optimized transport system has connected every 
part of the world to other one. In this situation it is difficult to understand which 
product is exported from where and who is the owner, developer and organizer of 
whole operation. This type of large shipment and transportation industries are also 
facing problems related to payments. Blockchain is a highly integrated cryptographic 
system where all the data and process can be stored and accessible whenever 
needed. 
 Healthcare industry A patient's medical history describes the previous procedures 
and treatment taken by him. With the help of blockchain it becomes easy to track all 
the records of pre medical history and start new treatment according to it. 
 
Insurance sector- Corning in the insurance sector is more common these days, not 
only consumers and fraud individual sometimes insurance companies also use 
consumer's weak points as an advantage. Blockchain will help to stop these 
problems by maintaining records from the starting of an agreement to get it to end. 
 Online marketing- Consumers are willing to get what they want, this perception 
leads to generate high demands in business. To fulfill these demands Omnichannel 
distributor and suppliers face conflicts among them related to payment delays, Delay 
in product delivery and non-satisfactory supply of product. To avoid these situation 
blockchain records can be used as an end to end description of the product and its 
origin, supplier, and payment method as well. 
Scope of the Blockchain 
Blockchain is the leading invention of this century in finance, record management and for 
secure crypto money transactions. Sometimes blockchain and bitcoin is considered as one 
which is wrong. Bitcoin is as a component used in blockchain, as an application blockchain 
has a wide functioning area which would develop more with time and research. 
Every Industry is considering blockchain useful and trying to add its features in the system 
according to their requirements. Blockchain is still in its prior face to find its scope in 
business world. Some industries are using it with its basic functions. Government bodies are 
also finding blockchain as an improvement in their digitalization projects. In some countries 
like USA authorities are looking forward to add blockchain as a new voting system which can 
bring more transparency in Presidential election. 
 
Read more: https://is.gd/sOrvyL