Blockchain is an emerging technology which has gained popularity in few years. Blockchains are the shared digital ledgers that are linked with cryptographic algorithms for verifying the creation and transfer of digitally represented assets or information over a peer-to-peer network. It is distributed or decentralized public ledger which contains blocks of transaction or information linked to each other. Blockchain ensures secure, authenticated & verifiable transactions and allows to make changes only with the consent of each participant involved. Blockchain eliminates the need of relying on an existing intermediary (bank in the case of financial transactions) and the communication directly occurs between peers rather than through a central node.
Blockchain Technology originally developed for the cryptocurrency bitcoin, does not stop there and offers several other opportunities in many sectors such as governance, BFSI, health, education, IT and telecom, energy and industrial. There are various benefit of switching to blockchain technology which includes security and transparency, auditable, decentralized, high resistance to outages, tamper proof and efficient. Blockchain provides highly secured ledger system across the distributed network and due to digital transformation and increased complexity in cyber protection, many companies are investing in blockchain for enhancing their cybersecurity strategy.
There are 2 types of Blockchain
- Public Blockchain– which are open to everyone (Bitcoin, Ethereum, Tezos, etc.),
- Private Blockchain – which have access only to the members of network only (Hyperledger, Ripple, MultiChain, etc.)
Blockchain is used to record not only the financial transactions but virtually everything of value. Apart from cryptocurrencies, the technology also has other potential uses. Blockchain can also be used in tracking, trading and representing many other types of assets such as real and intellectual property rights, government issued money (bonds, derivatives, stocks, and other financial products), contract rights, expenditure of public or private funds, movement of goods and services across supply chain, and much more. The major reasons for switching to blockchain technology includes easily traceable, permanent, decentralized, transparency, and no human errors, among others.
– Sonam Chawla,