Nowadays, security has been a major concern for most of the application developers or IT service providers. With daily hearing of n number of cases, regarding unethical hacking, virus dissemination, phishing and identity revealing theft and credit card frauds, have raised serious matter of thinking for all software developers. There by, generating the need for inventing new technology for maintaining security regimes in the arena of software development. Cheating a system is near to impossible with the all new block chain technology.
What is a Blockchain?
Block chain technology can store any data or information without any discrepancy to the owner’s personal information. Financial transactions are an integral part of each and every individual’s day to day activities. A block chain is a long huge chain of systems wherein all the financial transactions are duplicated and distributed across the network. Any new transaction which happens to occur in the ledger account, then it is added to the entire system.
Hash is the smallest form of cryptographic signature in which each transaction’s data is recorded. It is known as Distributed Ledger Technology (DLT). Whenever any hacker or any technical sound person brings changes to the block present in the chain, it would create damage to the entire block chain system thereby making it inferred towards any kind of mishap occurred in the system. Hence, when the hacker wants to corrupt a system, he/she needs to trace the whole series in a block chain. With each new addition in the block chain, security of the ledger account increases. Security and privacy protocols are directly proportional to number of elements on a chain.
Unlike Bitcoins, where a particular authority is handling everything, here in block chain people handle their own units.
Why do we need Blockchain?
While carrying out financial transactions, there is a dire need of a full proof system which maintains high level of security. Block chain is a distributed network of ledger technology. It holds data securely, and adds more and more values into it as when it is required. To carry out any successful transaction, some values are deducted and some are summed up. Data stored on a Blockchain cannot be manipulated. The outcome poses to be absolutely resistant to theft and vandalization.
Data base is a collection of information or data in a structured table format. Certain operations can be performed on the set of data stored in database. Blockchains are very much similar to databases. In the case of databases, data is stored in a cell, whereas in blockchain , data is stored in blocks which are later on clubbed together in a chain. Each block in the chain is assigned a specific timestamp when it enters the chain. Blockchains are a safer option than bitcoins and cryptocurrency, which have become quite famous in late 20’s.
How does a Blockchain work?
1. For supposedly, if a person A wants to transfer money to person B, via an online system, then the transaction is represented in the form of blocks.
2. The details of the transaction such as ownership, modification history, etc is stored in a unit called “hash”.
3. As you all know, that a block chain consists of several elements joined in it, any transaction is notified to all the parties attached on the loop.
4. All the systems in the loop will approve the transaction as a legit one. Only then it is carry forwarded and depicted in the chain, thereby, showing transparency nature of the block chain technology.
5. After all these steps, money is transferred from person A to person B, updating in the database.
Advantages of Blockchain:
1. Accuracy of Chain
All the transactional data supplied onto the chain, restore same value as they are processed into blocks present on chain. Precision and accuracy are one of the prime characteristics of block chain technology.
2. Cost deductions
Companies using block chain technology have expanded their profit margin, due to the budget friendly nature of block chain technology.
According to the conventional way, you need government or banks approval for conducting transfer of money, but in case of block chain technology, there is no higher authority required.
4. Efficient transactions
Transactions are made efficient with the end to end secure transfer of money. If any malicious system brings about change in the blocks in chain, then his request will be rejected by others associated in the chain.
Once the data is written onto the block, it cannot be erased back.
5. Private Transactions
One can conduct private transactions, irrespective of the fear of maintaining secrecy for their financial transactions.
6. Secure transactions
Block chain transactions are made secure with digital signature inclusion it it. If one wants to make any changes in the blocks, then that change needs to be made even in rest of the blocks along with unique digital signature.
Transparency is a key feature in today’s scenario. Decentralization urges more transparency in the system. Transparency is one such element which can work beyond your imagination.
Some of the key features of Blockchain Technology:
1. In the blockchain technology, since all the nodes check the validity of each transaction, it makes it corrupt free technology for users to rely on it.
2. Blockchain doesn’t have any ruling authority over it. No single person rules over the activities occurring in a block chain. A group of parties collaborate together, and take a joint decision over all the blocks. Therefore, giving it a tag of decentralized system.
3. Since all the members are equally responsible for the approval on the system, there are scarce chances of any theft or mishaps in the system. Therefore, giving it an angle of enhanced security feature to the blockchain technology.
4. Ledgers are distributed across the network, in order to generate same type of output. The resultant output is better one.
5. Blockchain technology works upon certain pre-defined algorithms and consensus. Every algorithm brings the best output in the blocks present in the block chain environment.
6. Blockchain technology targets for faster settlements, rather than traditional old method of transferring money or asset. Making blockchain technology one of the fastest way of doing any kind of financial transactions.
Still blockchains are experiencing a growth and establishing its market for gaining acceptance among general public. It is yet to explore its subject of expertise. Block Chains have made tasks much easier for banks, businesses and government operations with accuracy factor, secure, and cheap with less of man force required.
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