Blockchain – Understanding the concept.

In this world, the businesses are moving forward with the seamless transaction structure. Whether you want to call out the airline or housing….or wherever transaction happens, you need some kind of seamless processing. That’s where blockchain technology comes in. The blockchain is not something new. Back in 1999, the file-sharing network Napster made it easy to share audio files on a hybrid P2P network. That file-sharing network did more than just share music files: It allowed all users to retain copies of those shared files such that a single digital asset resulted in a limitless number of perfect copies across a global network.

This structure has been coined years ago and the reason why we are hearing about it now so much is of course Bitcoin. ENTER THE BITCOIN WORLD!

In 2009, a new kind of infrastructure mined 50 digital coins and recorded them on a public ledger that’s replicated on a decentralized P2P network of interconnected computers. The remarkable thing about this blockchain is that it lacks any sort of trust authority or governance to validate each transaction. Everything is in public. Understanding how to engineer a public blockchain requires knowledge of cryptographic hashes, public key cryptography (PKC), binary hash chains (Merkle trees, in particular), and consensus algorithms. I’ll briefly review these concepts, and then I’ll show that a blockchain is a hash chain that contains a hash chain of transactions. Once you grasp this nested-hash-chain concept, you’ll understand blockchain technology’s fundamental design.

I will write more regarding different Cryptographic, Public & Binary algorithms in my later post.

What are the business benefits of blockchain?

In legacy business networks, all participants maintain their own ledgers with duplication and discrepancies that result in disputes, increased settlement times, and the need for intermediaries with their associated overhead costs. However, by using blockchain-based shared ledgers, where transactions cannot be altered once validated by consensus and written to the ledger, businesses can save time and costs while reducing risks.

Blockchain consensus mechanisms provide the benefits of a consolidated, consistent dataset with reduced errors, near-real-time reference data, and the flexibility for participants to change the descriptions of the assets they own.

Because no one participating member owns the source of origin for information contained in the shared ledger, blockchain technologies lead to increased trust and integrity in the flow of transaction information among the participating members.

Immutability mechanisms of blockchain technologies lead to lowered cost of audit and regulatory compliance with improved transparency. And because contracts being executed on business networks using blockchain technologies are automated and final, businesses benefit from increased speed of execution, reduced costs, and less risk, all of which enables businesses to build new revenue streams to interact with clients.

I do believe that when we had WWW back in the day, this technology advancement revolutionized the way how we work now. Blockchain will be the next -> WWW.

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Author: Raj

Sitecore Enthusiast

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