BLOCKCHAIN TECHNOLOGY: THE NEXT REVOLUTION

           Within a span of last 30 years, world had came across numerous revolutionary changes. Introduction to Internet to the lifestyle had changed the world in fascinating way. Let me take you back to the iron age where modern humans have more evolved brains than before. There started the concept of trading, in which goods are exchanged between people, on the basis of their needs. With time, more ideas including barter system also became operative. Basically, the medium of exchange in present time i.e. money or paper notes are the evolved form of that trading system.  Apart from trading experiences, with time the maintenance of records also became a vital part of lifestyle. In almost every fields of world records became necessary for proper functioning of any system. 

         

           After the internet took over the world, those ancient problems became simpler. But, on the other hand newer issues like illegal hacking, cyber crimes, internet frauds also evolved. Thus, the world now needs something that will overcome these types of problems. 

            With limitless studies on data science and technology, various cryptographers in fields of information and communication have successfully introduced a technology known as "Blockchain". They claim that this technology is going to take over the whole world and will be the most secured system till date. With the help of this technology, the paper notes that everyone using as a medium of exchange in present era, is going to extinct after few years. The blockchain is going to be the next revolutionary change after Internet soon.

           Now, several questions arises: Is this true that this technology is going to rule the entire world ? Why is it considered to be most secured ? To answer such questions, we have to go back in time about how the idea of blockchain came into existence, it's mechanism and more detailed information. So, let's dive into the topic in details.

THE RISE OF CRYPTOGRAPHY :

            "Cryptography" refers to the process of analyzing codes. In 1982, a famous American cryptographer David Chaum, for the first time introduced the concept of 'blocks' where he described a decentralized system. Decentralized system refers to a network of devices, where multiple users have the access to authorize a system. Here, the block chain comes to play. His work was further re-established by other cryptographers in 1992. But the concept took 16 long years to be implemented.

            In 2008, Satoshi Nakamoto introduced the idea of famous cryptocurrency "Bitcoin" and the concept was totally based on blockchain technology. In the case of Bitcoin, the blockchain technology was used for the first time ever for storing the records of transactions in the form of databases in a decentralized network. 

             Each transaction of bitcoin generates a new hash (unique ID) which circulates throughout the chain by proceeding further through different blocks. And the mechanism of blockchain continues. Soon after the launch of Bitcoin, the technology boosted and implemented in multiple fields. Like in health-care systems for storing records and also in Real Estate for property managements. This technology works best between a buyer and a seller, as well as maintaining contracts between 2 parties. 

WHAT IS A BLOCKCHAIN ?

           From the word blockchain, it refers to a system containing a chain of blocks. But, how does this chain works ? Before answering this question, let me discuss the structure of a single block. A single block in the system contains a total of three parts, a record that stores relevant information related to a particular field (like in case of cryptocurrencies, the records are transactions), second, a hash. A hash is a unique identification code that is recorded for certain activity (e.g. e457Jr9hgEf56lkgr). And third, the previous hash. This hash is the ID of the previous block.

          All the three parts contribute to built a single block. The block that initiates a blockchain is termed as a "Genesis" block. The Genesis block transfer it's hash to the first block, the hash of first block continues with the second, and the process goes on and subsequently forms a chain.

     

          Here is an example of a trading system that how a chain works. When a buyer creates a transaction, a record is made with an unique id, so called hash. The hash along with the record further passes onto a database system where processing occurs, and stored in various networks which leaded by some certified users or miners. Blockchain miners are basically those people who use certain software to have access to these blocks. With the help of miners, a network is created and the system becomes more secured. The process is discussed in the next section. 

            

MORE ABOUT DECENTRALISED SYSTEM :

              We often hear that the blockchain technology is a "decentralized system", which means multiple servers have access to authorize the entire system. Let me clarify it. Take an example of a bank. People open their individual accounts for storing their assets. Later on they debit, credit and transact whenever it is necessary, and all the data of their activity stored as records in bank, and bank handles it. Whenever they wish to see their activities or records, they could request to the bank, and the bank provides it. The main problem lies here is trustworthiness. As the system is under control of someone else, so you have not the proper visibility. Like the bank might crash and you can loose your money. Or else the data provided might not be 100% precise. And hence, the bank is considered as a centralized system.

             Unlike the centralized system, blockchain plays an important role in loyalty. Means, you have proper visibility on your assets and their records. No one could substitute it without your approval. Like in case of cryptocurrencies, a certain amount circulates worldwide having no central agency. Some network of computers run and manage it. Like I described on the above section, that how miners works for it.

WHY IT IS CONSIDERED AS MOST SECURED ?

              New technologies are invading the planet in present time. With time, threats to cyber crimes are also in peak. Millions of hackers are scattered worldwide. Researchers claim that hacking the blockchain is next to impossible. Here's why.

             As I had discussed earlier that a block contains three parts; a record, a hash and previous hash. Out of the three, the previous hash plays an important role that makes blockchain more secured. More often, the hash of previous block is connected to further blocks that results in the formation of a chain. One of the best feature of blockchain is that, more and more data can be added millions of times but can't be changed once after it was added. So, if someone disturbs a single block, the whole system becomes a complete mess and it's not possible because every single computer linked to the system need to approve the change. In simpler words, a change in a single block is executed only if it is approved by at least 51% of the systems within a network. Hence, if a That is why, it is consider as a secured system.

              From the above, we can conclude that a system under blockchain could be more secured if databases related to a system will be stored in maximum possible networks. This is why cryptocurrencies are preferred as the best trading network and of course, will dominate the future. We can see countries like El Salvador initiated the network, to be used as a legal and invulnerable system throughout their country. And gradually it will acquire the whole world.

FUTURE IN BLOCKCHAIN :

 

              The growing trend in this technology is clearly visible in present time. Hence, we can predict that this will surely gain heights in the upcoming generations. Moreover, the blockchain in continuously improving its features with newly updated ideas. In coming time, cloud-based platforms can be shifted to blockchain technology. As blockchain based applications are more secured and privacy focused, it will be more benefit to use several apps and stuff under this technology. So, blockchain in the future might be used in almost every field whether be it technical or non-technical. 

              The only thing that can be focused in present, is to spread awareness and provide education related to this technology. Several enterprise must involve in this act to create sort of user experience that this technology is safe, usable and easily understandable. And hence, the blockchain technology will revolutionize the world same as internet did.

SOURCE: Blockchain | Bitcoin | Dhruv Rathee - https://youtu.be/ENrjn-lD1e8