The world was formed almost 5.5 million years ago with no creature present or habitats, but since 3.5 billion years ago, the first man was born and since then the evolution of discovery of the planet started and that later boosted after the born of scientists like Newton, Einstein or Hawking that changed the view of science through modern discoveries.
Today’s world is becoming smarter than even its previous minute and every minute is leading to new discoveries. Among one of them is the discovery of Blockchain Technology in 1982 by Cryptographer David Chaum. Initially, it was introduced for application in cryptocurrencies.
Cryptocurrency Industry and Investments had grown high with better cash flow in the system in the previous years. Cryptocurrency like Ripple, NEM or Stellar, or Dash offered ROI up to 36,000% of the initial investment. This was largely possible due to increasing interest and better internet occupancy over years. Popular Cryptocurrency like Bitcoin or Etherium however managed to return up to 535% to 1030% outcome against the initial investment.
Another reason for growth in Cryptocurrency Investments is the culture of Cryptocurrency was illegal in India till the previous years and was regarded as a non-legal activity, but as per a statement by Reserve Bank of India, investment in Cryptocurrencies like Bitcoin is now legal. This in turn has increased public interest that had finally increased investment in digital based currency like Bitcoins or Etherium in India.
Blockchain – An Overview
Blockchain, a digitally operating cryptocurrency transfer system was first founded on the 30th of August 2011, by Ben Reeves with its headquarters in Luxembourg. However, Blockchain was founded in 2011, but the technology was in use since late 2008 then underlying Bitcoin in the Under-developing stage. The founder and CEO, Ben Reeves who was an ex-employee of Coinbase Inc.
Bitcoin is a Crypto Wallet, An Organisation managing other Cryptocurrencies as Bitcoin, Etherium etc provides detailed data and charts for every Cryptocurrency available.
In the year 2014, Blockchain went into a conflict with Tech Giant Apple for allegedly publicly yelling Bitcoin Community and Illogical behavior and responses and services and was taken down from Apple Store. Later after almost six months, Blockchain solved the issue and restored its presence. Since then, Blockchain has been improving itself to become the ultimate transfer choice.
Blockchain Working Mechanism
One planning to invest in Cryptocurrencies must gather basic knowledge of Blockchain Working Mechanism to make a wholesome amount of profit. Working Mechanism of Blockchain technology is discussed below in full details:-
- User Initiates a Transaction.
- Block is created with a Private Peer or Key representing the transaction.
- The Block is now broadcasted to the network or system and sent to miners that validate and check if it is unspent.
- After successful verification the transaction is confirmed, then the transaction is included in blocks by matching the hash of the accepted block as previous blocks.
- The transaction is said to succeed.
However, it may seem the working mechanism of Blockchain is a bit confusing. Hence, we recommend tallying the steps with the concept image included above.
Among the transaction processing mechanism, one of the integrally important phases is its Authentication. Without authentication, Blockchain Technology is worthless. It works in the following steps:-
- The requester retrieves the RSA public key of the verifier.
- Requester Encrypts Blockchain address and sends to the verifier.
- The verifier will use its private key to decrypt the Blockchain address.
- The verifier uses a Blockchain address to retrieve the RSA public key of the requester.
- Verifier, then generates a random string, hash, and timestamp and Encrypts it with the requester’s RSA public key.
- The verifier then sends the Encrypted hash to the requester
- The requester then uses its RSA private key to decrypt the hash and signs with the same.
- The requester then Encrypts an envelope containing a digital signature, signed hash, and Blockchain address and sends it to the verifier.
- The verifier then decrypts it with its private key and verifies whether the signature is valid or not.
- After the successful verification, the requester is allowed to enter the network.
Since the global launch of the Blockchain-based system, it has gently grown running more and more Cryptocurrencies and other essentials. Since its launch, the average number of ICO’s has risen from 8 to 200. In 2018, Brands from different sectors from almost 18 Counties came up with a 2.1 Billion investment in Blockchain Systems.
Blockchain was launched with its main motive to enhance Cryptocurrency transactions more fluent and error-free, but in the last few years, Blockchain is adopted under almost every sector and is currently operating as many as thousands of different applications based on user convenience.
Blockchain has made its way to sectors like food or medical or hospitality and many others. Some of the trending Blockchain-based platforms are:-
Ethereum and Bitcoin were among the first Cryptocurrencies to adopt Blockchain Technology throughout their industry and operations. The consensus algorithms used is Proof-Of-Work (PoF). Smart Contracts are available under this system.
Hyperledger, the most trending Blockchain-operated system. It offers Blockchain technology throughout its industry and governance is Linux Based Foundation. Permissioned ledger is used to ensure proper functioning with pluggable framework Based algorithm with smart Contracts enabled.
Ripple, the Cryptocurrency offering Maximum Return-Of-Investments (ROI) in the previous financial year up to 36000% of the initial investment supports Blockchain Solutions under Ripple Lab. Ripple uses Permissioned Ledger with Probabilistic Voting based consensus algorithm. Ripple in general does not offer smart Contract service.
Blockchain Technology: Uses
Being a technology from and for the future, it has in the preliminary stages had shown various pros on the technology side. Some of them are listed below:-
Blockchain behind Bitcoin
As discussed earlier, Blockchain was launched with the core intention to implement fluidity among Cryptocurrency transactions. Bitcoin was the first Crypto Wallet cum Currency to adopt this technology. Mostly Blockchain-based functions are seen under implementation for Bitcoin. Some of the eye-catching features are Mining, Verification, etc.
When a transaction is initiated for Bitcoin. It generally follows the totally same and stock Blockchain working Mechanism with no additional functionality.
Blockchain in Healthcare
Blockchain is one of the most transparent systems being adopted with different applications and the Healthcare sector is one of them, which is trying to adopt as much faster as possible. Blockchain in Healthcare enhances data handling for a particular patient, increased it to be accessed from any point. This will increase the risk of losing previous health records, delivering better treatment scenarios.
Blockchain in Healthcare will ease the working of patients for medical experiments with proper data of past medical records for the patients. It would largely enhance the dependency of third-party payment systems with utmost user private data being in a tight and secure environment.
Blockchain in Foodings
Fooding is one of the sectors bearing huge data crises. It is the most data-lacking sector of India. If Bitcoin is adopted in Fooding industry it can largely enhance data storage and transparency with top-notch data security.
Blockchain in this sector can largely enhance payment transparency and provide better traceability of the same. In fact, it would be able to deliver payment records in real-time. Blockchain has data that are undeletable and permanent that can be assessed from any user and anywhere.
India being an agro-based region has farmers in aggregate. Blockchain Payment can reduce their net cost for production decreasing risks of frauds by banks and lenders increasing efficiently more gain to individuals.
As discussed earlier, Blockchain has been finding its best possible applications in financial or healthcare or research and analysis or data storage or smart contracts, etc.
Pros & Cons
Blockchain has several pros and subsequently it offers several cons. Let’s discuss some of them below:-
Blockchain, since its launch has shown a robust nature of the operation. Hence, it has been successful in providing a huge and robust environment for better and fluency in transactions.
The official website of Blockchain has been offering transparent public data of each and every transaction with the best charts offering a detailed market trend. Every transaction successful on the network is transparent and is visible on the official website with public hash available to the world.
Blockchain has a decentralized system of operation. It does not have a central system regulating the system. It is operated on an individual basis. The networks fail to create a centralized system that creates a more secure and un-trackable connection.
Blockchain works on a peer-to-peer network. Hence there is more or less no room for Hacking into the system. It has a block upon the technique of operation. Blockchain is a peer-to-peer secured network that is encrypted within its bound of networking.
Blockchain requires verification before any transaction performed. It sometimes sounds very unusual or illogical. But remember that it is meant to be enhancing security.
Every transaction needs transverse and process every intermediate node individually to reach the final or targeted node. Hence, it somehow affects performance.
Blockchain is not working on a centralized database but working on a distributive network. Every transaction must need to be reached a common consensus. Depending on the size and Number blocks involved, the forth-and-back blocks need to attain a common consensus to function properly.
Hence, we discussed some of the points to be noted before investing in bitcoin and gaining proper knowledge. Hope you liked our presentation. This was Raj signing off. Thank You.