Blockchain fundamentally is ever expanding database similar to bank ledger. Rather modifying existing entry, new entry is made and then made public. Blockchain database is dependent on encryption thus making it safe.
Blockchain can revolutionize the IT industry, most people think that Blockchain is a technology that powers crypto currency like Bitcoin. Yes, initially blockchain’s first version was used for crypto currency but its role has expanded a lot now and can be applied to bigger industries to prevent manipulation, bring transparency and will built trust in the data. It will not only expedite the process but will reduce the cost as well, depending upon the way it is implemented. Blockchain can act as monitoring mechanism and boost quality control.
Blockchain stores information in batches called as block and these blocks are linked together in a chronological fashion forming a chain, thus called as Blockchain.
- Digital Ledger
- Distributed Database
- Chronologically Linked and Time Stamped
- A peer to peer network that revokes the need of intermediaries.
There are three versions of Blockchain :-
The implementation of Distribution Ledger Technology led to first application ie crypto currency. Crypto currency transactions are based on BlockChain Technology and Bitcoin is the perfect example .
It led to Smart Contracts application. Smart contracts are computer programs or applications based on BlockChain Technology. These applications execute automatically, and check predefined conditions like verification and enforcement. Smart Contracts can be used to replace for traditional business contracts.
It has decentralization concept and applications have their backend code on decentralized peer to peer network.