What is Blockchain and why does it matter

What is Blockchain

Blockchain is a technology to store and exchange information within a group in a secure and efficient manner. In contrast to databases, where information is usually stored in a table, in blockchain data is stored in a block. Each block is unique and can’t be tampered with without the agreement of the participants of the transaction. When a block gets filled with information, it gets chained with the previously filled block. Thus creates a blockchain.

Properties of blockchain:

Decentralized: The most interesting fact about the blockchain is that no single person or authority has control over it. Instead, every transaction is verified and confirmed by the online community, which makes it decentralized!

Immutable: Information stored in the blockchain can’t be altered

Secure: Every block is encrypted using cryptography so it’s secure by default.

Private: Participants in a blockchain transaction remain anonymous. Only the transaction details is visible to the network

Transparent : Any transaction in a blockchain network is open and verifiable by anyone in the network

Some Practical use cases of blockchain

Banking

Transactions in conventional banking systems require an intermediary which is both time consuming and expensive. Blockchain eliminates the need for a central governing system. People can send and receive money via cryptocurrency on a peer to peer basis due to blockchain. Blockchain technology provides instant and borderless payment across the globe.

Supply Chain

Blockchain technology can be used in supply chain management to keep track of goods efficiently. Blockchain eliminates the necessities of multiple intermediaries in supply chain management. If blockchain is properly implemented then it accelerates the overall processes in the supply chain which eventually cuts costs and increases revenues .

Healthcare Sector

Implementing blockchain in billing management of the healthcare sector will bring transparency. Thus cutting down fraudulent costs in the health sector. Another important use case would be maintaining health records of patients. Blockchain’s characteristics such as security, immutability, privacy makes it a prime choice for storing health records.

Voting System

Blockchain implementation can prevent vote rigging which is common in traditional voting systems. It's going to save time since voters won't need to wait in the queue to vote. Vote counting accuracy will increase significantly since each ID can be just attributed to one vote. Once a vote in added in the network it can’t be erased

Non-Fungible Tokens

Non Fungible Tokens AKA NFT is one of the most sought after blockchain applications. Simply speaking NFTs are digital goods like music, art, videos etc. Thanks to blockchain, someone can truly own any digital asset now.

To Conclude:

It can be safely said that blockchain is way more than a mere buzzword since it tends to solve many real world problems. As blockchains become more mature, their applications are expected to cover more industries.