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What is blockchain technology and its benefits

by AFIRA WAHEED
What is blockchain technology and its benefits

Technology is a top-notch industry these days. The traditional methods of doing work have outdated. Now, people are trying to invent a digital system to perform their tasks. Blockchain technology is the result of this quest.

Stuart Haber and W. Scott Stornetta started the development of it in 1991. The proper use of blockchain begun in 2009 when Satoshi Nakamoto discovered the digital cryptocurrency (Bitcoin). Nakamoto created the first blockchain.

What is Blockchain?

Blockchain is a system where information on transactions is stored. It is impossible to hack, change and cheat this specific information. This system helps its users to maintain the security of their digital transactions. The base of this system is distributed ledger technology.

Types of Blockchain

There are two basic types of blockchain.

Public

Anyone can get access to these chains. People can do the transaction through it. Anyone can add it to the chain blocks. Bitcoin is an example of a public chain block.

Private

Private chains are more secure than public chains. No one can get into them without the permission of nodes. Hyperledger fabric by Linux foundation is an example of a private chain block.

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Parts of Blockchain

There are four key parts of any blockchain.

  1. A node application
  2. A shared ledger
  3. A consensus algorithm
  4. A virtual machine

How to use it?

When a new block is created in a chain block, it passes through some process, they are:

Authentication

A record of a transaction that is made by people gets authenticated. It happens with the help of a digital signature.

Verification

After completing the authentication process, a block goes into the verification process. Every node ensures that the upcoming trade is legal. It is a disseminated process. It is necessary to agree with new transactions independently.

Get Hashed

Hash is a unique identifier that is carried out by a block. After getting approval by all members of the chain, block assigns with the hash value. It maintains the respect of a chain block. It tells us that there are no changes made in the ledger after its creation.

Addition of new block

After completing the three above steps, a new block is added to the blockchain within a short time. It is the last process.

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What is blockchain technology and its benefits

Benefits 

It has many benefits for different industries from banking to healthcare and govt institutions to the education industry. Its flawless strength in technology is very helpful to build a robust and failproof IT infrastructure. 

Blockchain technology in Banking support

After getting rid of manual paperwork, banks have launched a blockchain system. It helps in finance and global trade. It increases the speed of work and prevents delays. Any transaction can make within seconds with its aid.

Blockchain technology in Healthcare support

It helps a lot to maintain the data of hospitals and healthcare centers. The record of patients remains secured in blocks. It can provide to the researcher anytime.

Blockchain in Government institutions

It helps the government to secure the data of citizens and institutes. The government manages the identity of persons, contracts with agencies, and citizen services with chain blocks. It is beneficial because of its strict security system.

Block technology in Educational support

It is helpful for educational institutions. It secures the details of students, results, and documents. By using it, the administration of institutes keeps data for a long time with no damage.

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Conclusion

With its decentralized process, blockchain has become very popular in different industries. Blocks are playing a crucial role to save and transfer any information from web servers to digital marketing. It expects that we’ll use chain blocks in every step of our lives to secure data.

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