A Complete Blog on Blockchain

Introduction to blockchain: Blockchain is an advanced network that has the potential to contribute to almost every online business. Sending information between two parties without the risk of it being stolen, hacked, or modified is the main goal of creating this type of network. It would be a transparent and highly secure system suitable for transactions, sensitive information sharing and other operations that require safety and discretion.

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible or intangible. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Three pillars of Blockchain Technology:

• Security
• Decentralization
• Scalability

Types of Blockchain Network:

• Public blockchain networks- A blockchain network where anyone can join and participate in, such as Bitcoin.
• Private blockchain networks- a decentralized peer-to-peer network
• Permissioned blockchain networks- This network places restrictions on who is allowed to participate in the network and in what transactions.
• Consortium blockchains- Here various organizations can share the responsibilities of maintaining a blockchain.

What is blockchain good for?

Blockchain is a trusted internet network for transaction validation, cryptocurrency trading and smart contracts. But around the world, blockchain is used for different industries and for various purposes. There arise a few questions like — Can blockchains be the future of modern B2B and B2C transactions? Can it support companies in their day-to-day operations? Will it be the key to create transparent business environments where everything will be open and consistent? Time will show. Today there are numerous businesses using blockchain to help them with many different things.

Apart from public blockchains there are also private blockchains called permissioned blockchains. Bitcoin uses public blockchain, but there are also cryptocurrencies based on private blockchains. This type of blockchain is faster when it comes to processing transactions, but it’s also prone to be hacked.

Businesses do not need to use a private blockchain network. Choosing private blockchain can be justified by the need to hide transactions visible in the ledger. But that depends on the industry your business is operating in.

How does Blockchain work?

• Each transaction occurred is recorded as a block of data.
• Each block is connected to one another.
• Transactions are blocked together in an irreversible chain, i.e, Blockchain.

Benefits of Blockchain include-

1. Trust- You will receive accurate and timely data and your confidential blockchain records will be shared only with network members to whom you have specifically granted access.
2. Security- Your data with Blockchain is fully secured. Not even your data administrator can delete transactions.
3. Efficiency- With a distributed ledger that is shared among members of a network, time-wasting record reconciliations are eliminated.