What is Blockchain Technology?
Blockchain Technology is a sharing ledger technology, in where is information and transactions are saved in a secure and translucent mode. Through this technology, a network of computers (nodes) allows copies of data to be stored and shared in secure ways, making our data and transactions hack and tamper-proof.
Through this Blockchain we can use Cryptocurrencies like Bitcoin, Ethereum and others Cryptos. and these Cryptocurrencies are fully Decentralized, so that their transactions and data can be stored and transferred securely in their interfaces .
Apart from this, we can also use the systems that come in handy in supply chain management through Blockchain. Through this the supply chain of products and services is tracked transparently and securely. Through-voting systems of Blockchain can also be made. Voting is managed and monitored through its secure and transparent method.
Table of Contents
Now we discussed on Types of Blockchain, which mainly divided in four categories:
1. Public Blockchains
Public Blockchains, is like Bitcoin, Ethereum and others Cryptos, which are open source and can be get-at-able by all users. And this, transactions are stored in the public ledger and all the nodes of the networks are validate by them. These Blockchains are fully Decentralized and do not have any major authority.
2. Private Blockchains
Private blockchains, such as Hyperledger Fabric and Kada, work with restricted access. This Blockchains are generally designed for enterprises and organizations and are shared between transactions and data restricted users.
3. Hybrid Blockchains
Hybrid Blockchains, such as Ripple, and its combination of the characteristics of public and private Blockchains. These Blockchains are Decentralized, but work with restricted access. In this, transactions and data are shared only among limited users.
4. Consortium Blockchains
Consortium Blockchains, such as R3 Karda and Hyperledger, It is used for collaboration and transactions between multiple organizations and enterprises. In this, there is a process of consensus building between multiple nodes.
These are some popular Blockchain Technology types, which are being used in many industries these days.
Now we talk about The Technologies used behind the Blockchain
To implement Blockchain Technology, some important technologies are used. These technologies are:
1. Distributed Ledger Technology(DLT)
This is the most important tech component of Blockchain Technology. With this technology transactions and data are stored in a Decentralized way in the particular system.
Through DLT, this technology is Tamper-Proof and Protects Data Security and privacy.
Blockchain transactions and data are encrypted using Cryptography Technology, which can be stored and shared in a secure way. Through cryptography, these transactions and data are tamper-proof and their privacy and security are protected.
3. Smart Contracts
Through smart contracts, Blockchain Technology can handle automated transactions and processes. These contracts are programmable and can be executed automatically, which are much more efficient than traditional manual processes.
4. Consensus Mechanisms
Through Consensus Mechanisms, users of Blockchain Technology can verify transactions and data and can operate its network with secure methods. Furthermore, through consensus mechanisms, users of Blockchain Technology can establish the rules and regulations of the network.
5. Digital Identity
Using this Digital Identity Technology, users of Blockchain Technology can establish their digital identity in a secure way. besides from this, with this technology Digital Identity, users can validate their identity also verify their transactions and data in a secure way. These are the many important technologies, which are used through Blockchain Technology. By using these technologies, proper implementation and functioning of Blockchain Technology is being done.
Now Take look on useful aspects of Block-chain Technology
Blockchain Technology is a very advantageous and innovatory technology, With this technology we can store, manage and share our data and also transactions in a secure and translucent way.
Here are some useful aspects of this technology.
Decentralized and Transparent:
Due to the fact that Blockchain technology, its a fully Decentralized and Transparent, there are no any possibilities of tampering and hacking. Also it helps in protecting the privacy and security of users data and transactions with not any other consideration.
Secure and Immutable:
Transactions and Data made through Blockchain Technology are Secure and Immutable, Which is very difficult to manipulate and hack. This technology encrypts transactions and data through cryptographic techniques, which can be stored and shared using secure means.
Faster and Efficient:
Through Blockchain Technology, transactions and data can be processed in a faster and efficient manner. This technology can process automatic transactions through smart contracts, which makes the process much faster and efficient than manual transactions.
With the use of Blockchain Technology, a minimal amount have been charged to process transactions and data, Which makes it cost-effective. With the use of this technology, the fees and processing time of traditional Financial Organization can also be lessen.
Opportunities for Innovation:
With this Blockchain Technology, many opportunity and possibilities for innovation and development can be created. This technology can be make use of in Finance Sector, Healthcare Sector, Supply Chain, Government and many other Organizations, in where the processes and operations of industries can be improved.
So Here are some useful aspects of Blockchain Technology, through which we can process our data and transactions in a secure and efficient manner. With the use of Blockchain Technology, we can disrupt our traditional processes and explore many opportunities and possibilities.
Every technologies have own Fundamental Power to create new think, but we have to never forget that behind every technology always have some limitations also.
So in last part of our article we discussed about the Limitations of Block-Chain Technology:
1. Cybersecurity Risks
Despite being secure, Blockchain Technology also faces Cyber Attacks and Hacking Risks. There are risks of tampering and Hacking of Transactions and Data, due to which sensitive information of users can be compromised.
2. Illegal Activities
Due to the Obscurity and Decentralized nature of Blockchain Technology, there are illegal activities and unsourced market transactions are also be capable. Beside from this, this technology can also be used for money laundering and unethical financing.
3. Lack of Regulation
The Regulatory Framework of Blockchain Technology has not yet been developed, in there Transparency and Accountability can be enabled. besides from this, companies and users working with Blockchain Technology need to follow the legal framework and guidelines on that.
4. Environmental Impact
Blockchain Technology required a lot of computational resources and energy to work, and making this technology is very energy-intensive. besides all from this, it extend the energy consumption and carbon footprint, and which can also affect the environment and climate change.
There were some unfavorable aspects of Blockchain Technology, which is very important to recognize and keep in mind.
In summary, Blockchain Technology is a successive and new technology to data management that has the power to transform many sectors of the economy. this technology have ability to provide secure, clear , and truthful transactions without the need for intermedial authorities has made it one of the most dedicating technologies of our time. As blockchain technology is continues to emerge and grown-up, also it’s expected to create new contingency for innovation and growth in a wide range of industries .And also there have some limitations aspect which will we are not ignore that .
So this was some basic and insights information’s about Blockchain.